Supply chain professionals are in the midst of Black Friday and Cyber Monday — a pre-holiday shopping extravaganza that offers consumers a unique opportunity to indulge in deep discounts, BOGO savings and extended store hours. For shoppers, it's a tradition as much about the thrill of the hunt as it is about finding the perfect deal. For supply chain professionals, it’s a high-stakes balancing act and critical moment to tap into essential knowledge and skills.
According to the National Retail Federation, consumers plan to spend a record $902 per person for gifts, food and decorations — up about 3% from last year. In anticipation, retailer Target has been strengthening its fulfillment network, reports Supply Chain Dive. The company now has 11 sortation centers in the United States, including a brand-new facility in Detroit that “allows the company to serve more than 3 million additional customers.” In fact, Target expects to process more than 400,000 packages per day across the network, quadrupling its normal, nonholiday output. The push is also an effort to increase the number of same- and next-day deliveries, by about 150% in the Detroit area alone.
To meet growing demand, the big-box giant is hiring more seasonal workers and turning stores into hubs. Meanwhile, other businesses are leaning on technology such as AI, automation and digital marketplaces to ensure a smooth holiday season. Some are adopting new B2B technologies, which optimize inventory management and payment processes, making it easier for partners to work together efficiently. For example, embedded payment systems enable suppliers and buyers alike to interact directly with the platform and avoid delays, and warehouses featuring robotic technology help humans increase their efficiency. According to Martechcube, predictive analytics is leading the way in smarter inventory management, personalized marketing and precision pricing at scale via real-time observation of competitor prices, consumer demand and revenue margins. Thus, it can help ensure discounts are attractive enough to gain buyers without eroding profits.
There are related challenges, of course. For instance, the sheer number of orders placed at this time is keeping warehouses managers on their toes. “The modern retail warehouse is no longer a simple storage facility, but a critical nexus for order processing and fulfillment, with teams working around the clock to move parcels along to their next destination,” notes a story in Supply Chain Brain. Retail warehouses have advanced equipment and devices to meet operational requirements, and this tech needs constant connectivity to avoid disruptions, slowdowns or even safety issues. Wi-fi alone may not be enough; a combined approach with public and private cellular, plus internet-of-things integration can increase efficiency in most instances.
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As supply chain professionals, we’re always considering the many moving parts of getting products from the factory floor to the warehouse to the end user — whether that’s another tier in the network or the perfect spot under the Christmas tree, menorah or other festive holiday display. And speaking of festivities, get ready to have some fun saving at ASCM’s big cybersale! Use promo code CYBER24 to take 15% off APICS certifications, learning systems, bundles and certificate programs. You’ll be ready to conquer the holiday rush this year and every year after.
