Basking in the aftermath of its omnichannel retail-rival Black Friday, Cyber Monday expectantly awaits the hordes of already keen consumers, in this exclusively online shopping event – a last chance to purchase any cut-price electronics just in time for the festive period.
With US origins; and first referred to as Cyber Monday in 2005, it was namely launched as a sales event to be held right after Black Friday. The perfectly crafted time to purchase discounted deals on gadgets galore, from TVs, music devices, and health trackers, to drones and home cinema systems. Whilst some retailers offer uninterrupted week-long deals; others choose to increase the exclusivity of their events, the products they offer, and of course their best deals; by restricting this all specifically, within a traditional one-day-only event.
As always at the beginning of November, speculation surrounds the potential sales to be offered by prestigious online-only retailers such as Amazon, and the traditional, yet omnichannel retailers such as Currys PC World, Boots, and John Lewis, joining in on the opportunely festive sales.
So just how do e-tailers and logistics providers prepare for, and cope with the efulfilment demands of events like Cyber Monday…
Failing to prepare…
A key responsibility of any Supply Chain manager, is to arrange and coordinate transportation for multiple clients. Retailers often want to make sure they have something for everyone in-stock for these types of sales; so to captivate as many consumers as possible, they may choose to hold and maneuver a very varied inventory.
An increase in the volume of orders, can in-turn cause bottlenecks or delays in shipping, which has the potential to affect the entire supply chain and disrupt all the orders caught behind the delay. Predicting possible deviations within deliveries, there should always be an alternative plan in place, to pro-actively avoid and prevent any supply chain problems caused by seasonal increase in supply and demand.
Staffing alone requires concentrated planning and organisation. Seasonality and the cyber-sales directly affect supply and demand, which in-turn dictates the need for increased warehouse operative staff. To handle the seasonal surge, not only are a greater number of staff needed; but they need to be able to hit the ground running, be proficiently trained, and perform to the required standards, of each specific supply chain.
Whilst the increase in demand means an intense period of concentrated planning, it does usually result in a longer term pay-off; with seasonal sales proven to be some of the most profitable days, for retailers, and logistics companies alike.
Increase in supply and demand encompasses services, as well as retail products. With seasonal sales riling up competition between multiple logistics companies vying for the most lucrative clients, it is no longer just retailers who benefit from seasonal increase in profit growth.
From review of the 2017’s successful statistics Cyber Monday 2018, is predicted to be as much of, if not a more superseding event…
Since its launch, according to source: www.cyber-monday.deals/uk/ “In 2017, Cyber Monday online sales increased by 7% year on year compared to 1% for Black Friday online sales. Last year there were a total of 185.7 million visits to online retailers during Cyber Monday. Amazon was in the lead, with 26.17% of all visit share.”
So as Black Friday and Cyber Monday continue to run strong amongst the robust realm of ecommerce – the challenge of effectively stocking-up and planning ahead, are nearly always outweighed by the opportunity to boost profits and acquire new clients.
The Supply Chain Consulting Group Ltd is the result of a merger between two of the UKs leading Logistics and Supply Chain Consultancies; Gideon Hillman Consulting and Go Supply Chain Consulting. The new company is 50/50 shared ownership between Gideon Hillman Consulting Ltd and Go Supply Chain Consulting Ltd with the directors of both companies sitting on the board of the joint venture. The two companies have been collaborating on major European and UK Logistics Network and Supply Chain projects for major clients in Grocery and non-grocery FMCG retail since 2015.