Expert Column The Supply Chain nightmare before Christmas

With the year coming to its close, December brings in another season of holiday shopping. Consumer spending is expected to increase by 20-30% from the past year. With the increased levels of purchases made from eCommerce medium, consumer demand is showing no signs of slowing down and businesses inevitably face massive levels of pressure to fulfill delivery demands. The digital transformation of retail has seen a massive nexus of purchases ranging from food, household goods and even various consumer goods. Businesses have already predicted product shortages, with occasional out-of-stock statuses for key holiday items. To keep up with consumer demand, retailers must rethink their strategies for the season and look into new operational strategies to forecast and manage their inventory levels. 

Delays in global shipping become exacerbated by increased demand and ongoing supply chain challenges, which in turn lead to shortages in holiday gifts and festive essentials. This issue is exacerbated by production bottlenecks which affects further availability of these items. With the onset of its increased demand, there will be an inflation of prices which increases product prices and affects consumer budgets. The anticipation of joyful celebrations may be marred by uncertainties, which reflect the intricacies of the interconnected processes which sustain the holiday supply chain and emphasizes on the need for early planning and proactive measures to mitigate the potential challenges for our holiday seasons. 

In order to work through the challenges of pre-christmas supply chains, it becomes imperative for businesses to invest in their digital infrastructures. Digital transformation of supply chains requires an adaptive approach, with new technologies needing to be integrated into existing IT infrastructures. With the growing complexity of digital systems, there is a need for an increasing reliability of digital touchpoints to ensure that businesses are able to monitor all processes effectively. It becomes essential for companies to invest in their existing IT infrastructure, from enhancing cybersecurity to ensuring proper network capacity for sufficient performance.  

End to end visibility

The primary purpose of implementing a reliable data system is to reflect end-to-end visibility of the supply chain stages. The system should integrate data from various stages of the supply chain, providing real-time insights into inventory level, production stages and transportation status. Especially in the context of festive seasons, when demand surges along with logistic challenges, having a comprehensive data system becomes necessary for effective supply chain planning and execution. 

End to end visibility allows businesses to anticipate potential disruptions before they escalate. In the event of shipping delays from suppliers, the data system can quickly flag these issues, enabling early awareness to empower decision makers to implement contingency plans, which may involve re-routing of shipments, adjusting production schedules or even proactive communication with customers on potential delays. Having end to end visibility also enhances collaboration among supply chain partners. The sharing of pertinent data among suppliers and manufacturers will ensure that all stakeholders are on the same page, both inventory levels and shipment statuses. This collaborative approach fosters a more responsive supply chain ecosystem. For example, if a certain raw material is facing delays, suppliers can work in tandem with manufacturers to explore alternative sources or adjust production plans accordingly. 

Predictive Analytics

Having a comprehensive data system also facilitates predictive analytics, enabling supply chain professionals to forecast potential disruptions based on historical facts and current trends. This forward-looking approach is invaluable during festive seasons, where demand factors and external factors such as weather conditions can significantly impact the supply chain. Predictive analytics can also help in optimizing inventory levels, ensuring that there’s sufficient stock to fulfill heightened demand levels without any situations of overstocking. 

The additional capabilities of demand forecast are boosted from the end to end visibility, which in turn helps to facilitate communications with customers and manage expectations. It is essential to communicate with customers when disruptions occur, whether due to shipping delays or production issues. Providing timely and accurate information on potential delays allows businesses to build trust with customers, who may be more understanding and accommodating if they were to be kept informed. 

Conclusion 

The supply chain nightmare before Christmas can be mitigated with the implementation of a data system which provides end to end visibility. It empowers supply side professionals with real-time insights, enhances collaboration among stakeholders, enables predictive analytics and facilitates proactive customer communication. As the holiday season approaches, the ability to navigate uncertainties with agility and foresight becomes a competitive advantage, ensuring a smoother and more resilient supply chain operation during a crucial time of heightened demand.

To ensure that one’s supply chain remains on track this holiday season, it is important to diversify one’s supply chain capabilities. While it would be ideal to have everything worked out for the holiday season, being properly equipped to handle any potential issues of the supply chain will enable businesses to understand the risks and create the appropriate contingency plans to minimize the impact of any necessary modifications to prepare for the products you might need from the appropriate vendors and suppliers who are able to meet your business requirements in the holiday season. 

About Cello Square

Cello Square is a digital freight forwarding service, developed by Samsung SDS. The platform provides end-to-end visibility, optimal routing of logistics transport with a simple booking process. Features range from real-time quotations, chat functions to dashboards reflecting operation insights. Cello Square is used by leading companies from various industries, to optimise supply chain stages and enhance system capability. 

Samsung SDS is a provider of Digital Logistic Services, establishing strong logistical capabilities across the world. Our global network spans across 36 countries with 53 international branches. We provide comprehensive IT –enabled services optimized to respective areas of Global Logistics, reliably handling the world’s 10th largest volume of air and ocean cargo. Speak with us today to optimize a solution for your business. 

Schedule a Demo with us today: https://www.cello-square.com/sg-en/contact.do