Shop-ocalypse

Though it seems that fall’s only just arrived, smart retailers have been preparing for the holiday season since last Christmas. That’s because there’s no bigger test of their ability to satisfy customers than Black Friday.

Black Friday: the most important day of the year for dedicated shoppers and retailers alike. On the day after Thanksgiving, millions upon millions of people look to capitalize on the sales that signal the start of the holiday season. Over the years, the parameters of Black Friday have expanded, as stores are increasingly opening their doors on the night of Thanksgiving, with others extending sales well past the day of. And that’s not to mention that more and more shoppers are seeking Black Friday (or Cyber Monday) deals online.

How can stores be sure they have the items customers want to see and buy online and on the shelves? The answer lies in planning, preparedness, and, of course, a little bit of holiday magic to avoid a major disruption like a storm or last year’s bankruptcy of the Hanjin shipping company.

Forewarned is Forearmed

During the holiday season, the repercussions of a single hiccup in the supply chain are amplified by higher volume and smaller delivery windows, so retailers must be hyper-aware of all logistical facets of the operation. They may choose to work with a 3PL provider to identify potential issues ahead of time and make necessary changes, from distribution center reorganizations to additional staff training.

Just like Santa, retailers start planning for the holiday season twelve months in advance -- it’s the only way to ensure that “out of stock” message never appears on the shelf or online shoppers’ screens. The first six months comprise the research phase, as retailers look to forecast market demand, determine factory capacity, and establish timelines for product delivery. For more complex items comprised of multiple parts (think home theaters and swingsets), best practice dictates that retailers wait to assemble “just in time” to account for market fluctuations and recall orders.

In the next three months, retailers iron out every last granular detail with the manufacturers. As we inch closer to the holiday rush, products finally make their way to warehouses all across the over the world. The retailers need to ask and answer a few crucial questions at this stage, including whether they’ll need to reserve extra warehouses, custom holiday kitting, or other holiday bells and whistles.

In the month leading up to Black Friday, products are assembled and distributed to stores. All of this work, planning, and effort culminates in -- what else? -- the purchase, as customers flock to all their favorite stores and hopefully find everything that they were looking for.

It’s an understatement to say that something could go wrong in the course of all this planning and movement of product. After all, it takes 25-30 days for a container to leave Asia, travel the ocean, and enter the U.S., and a single weather-related incident could disrupt a year’s worth of planning by delaying the product’s arrival. As a result, retailers have to be prepared for any and all changes to the status quo and strategize multiple alternatives for shipping and manufacturing in the months leading up to the big day.