It’s beginning to look a lot like Christmas. But for retailers, the festive period is a turbulent time, as volatility continues to persist across global supply chains in the form of production disruption, shortages, delays and low levels of stock inventory. With only a few weeks until Christmas, the panic is mounting, and many brands are anticipating that their goods might not make it to Santa’s sleigh this year.
According to Bloomberg’s Supply Chain Lines, ports on the US West Coast could permanently lose as much as 10% of the seaborne cargo that has been diverted to the Atlantic coast amid logistics bottlenecks, regulatory headwinds and labour uncertainty. Across the pond, driver shortages continue to plague European mobility and supply chains as the International Road Transport Union reports that up to 14% of truck drivers will be missing by the end of this year. These events have massively destabilized the global supply chain and will continue to cause ongoing supply shortages throughout the Christmas season and long into 2023.
For retailers, the key success factor for avoiding bottlenecks while alleviating investor and consumer pressure will be the ability to supply goods on time. Looking at the current state of the market, there is no doubt that it’s going to be a tough period for retailers. But imagine if there were ways to bring some normality back, now and into 2023, well in advance of next year’s festivities?
In the build up to peak season, supply chains are configured to both make their consumers happy while improving operational efficiency and optimizing processes. Christmas is undoubtedly the busiest season of the year. It's predicted that 57% of consumers finish their Christmas shopping during Black Friday, leaving just 43% remaining to shop before the big day due to large discounts.
In order to anticipate demand changes, make more accurate predictions and increase supply chain resilience in the build-up to the festive period and beyond, here are some important things to remember: