Black Friday, the day following Thanksgiving in the United States, has evolved into a global shopping phenomenon.
It marks the beginning of the holiday shopping season and offers businesses an opportunity to boost their sales significantly.
No wonder 87.2 million US consumers did their online shopping on Black Friday in 2022.
However, with great opportunity comes great responsibility.
To ensure you have enough stock, your ecommerce store works without hiccups, and your customers are satisfied with their purchase, you need to start preparing now.
So, read along to discover the best Black Friday supply chain and inventory planning solutions to common Black Friday supply chain problems!
The origin of Black Friday is complex, with historical roots and a more recent association with retail sales and holiday shopping.
Massive discounts, crowded stores, long lines, extended hours, and the growing influence of online shopping characterize this day.
It remains a significant event in the retail calendar, both in the United States and worldwide.
To make the most of this holiday and avoid inventory issues on Black Friday, meticulous planning and robust inventory management are essential.
Black Friday, the shopping extravaganza that kicks off the holiday season, presents opportunities and challenges for retailers.
Amidst the rush for deals and discounts, supply chain problems can emerge and disrupt operations.
Let's explore some of the most common Black Friday supply chain problems and provide effective solutions to tackle them.
Inaccurate demand forecasting can disrupt the Black Friday supply chain, leading to overstocking or understocking, resource misallocation, and production scheduling challenges.
As a result, you may struggle to meet customer demand effectively.
To tackle this issue, you must have accurate and precise data.
Here's how to achieve it:
Inefficient inventory management during Black Friday can result in either stockouts or overstocking, leading to customer dissatisfaction and increased storage costs.
Finding a middle ground between meeting customer demand and avoiding unnecessary expenses is important.
To address this issue, you should optimize your inventory management practices.
Weak or strained relationships with suppliers can lead to Black Friday supply chain disruptions, causing delays and inventory shortages.
In order to ensure timely product delivery, you need solid and collaborative partnerships with your suppliers.
The flood of products during the Black Friday and holiday season can put your fulfillment solution, whether in-house or outsourced, to the test.
It is a high-pressure phase with little time for system upgrades or performance enhancements.
If your processes and procedures are not robust enough now, they may be unable to endure the pressure of the holiday season.
To tackle this, implement the following strategies:
Relying solely on a single supplier can pose a significant risk during the high-demand Black Friday period.
If that supplier faces any issues, disruptions can quickly cascade, leading to delays and customer dissatisfaction.
To address this challenge, diversifying the supplier base is crucial:
Inefficient transportation and logistics during Black Friday can cause delays, customer dissatisfaction, problems with distribution networks, delivery methods, and shipment visibility.
To overcome this challenge, you should focus on the following:
The problem many ecommerce owners face is that a significant portion of their capital gets locked up in inventory.
The standard ecommerce payment terms, often 30/70, require a 30% down payment to manufacturers upon ordering, with the remaining 70% due upon shipment.
This practice creates cash-flow difficulties even under normal circumstances.
However, with the current need for larger orders and costly freight upgrades to meet demand, this problem has become more pronounced.
One potential solution to this issue is seeking external financing.
Many companies, hesitant to sell equity or place liens on their assets, increasingly turn to asset-based financing.
This approach allows retailers to secure the funds needed for inventory without compromising ownership or personal assets.
It eases cash-flow challenges, ensuring that capital is readily available to meet the demands of Black Friday and beyond.
With Purchase Finance from Myos, you can order from your manufacturer as usual.
At the same time, we handle your deposit or balance payment.
Doing this allows you to order more inventory, sell more, and never worry about running out of stock.
The benefits of Myos Purchase Finance include:
1. No Manufacturer Contact: We don't require information about your suppliers or customers, safeguarding your competitive advantage.
2. No Personal Guarantee: Unlike other finance providers, Myos doesn't ask for personal equity guarantees like your home. We use only a portion of your goods as security.
3. Flexible Repayment: You can choose when to settle the financing. Repay according to your turnover without fixed installments.
4. Quick Verification: Myos focuses on your products, minimizing the typical paperwork banks require. You can receive an offer within 72 hours with a streamlined and efficient financing process.
With Myos Purchase Finance, you can supercharge your online business's growth, maintain flexibility, and keep your inventory well-stocked for Black Friday, all without the hassle of traditional financing.
The biggest challenge for retailers during Black Friday is getting the last mile of delivery right.
Relying on a single carrier can be risky, especially considering potential disruptions like strikes.
Inefficient data analytics and technology use can hinder Black Friday supply chain success. Without proper tools and strategies, you may not have accurate information, leading to pricing issues, product selection challenges, and marketing inefficiencies.
To address this problem, adopt a data-driven approach and leverage technology effectively.
WISMO (Where Is My Order) calls increase during major sale events, which can be a cost problem for businesses and negatively impact customer experience.
To make your Black Friday in 2023 a success, focus on three key factors:
1. Smart Strategy: Develop a strong supply chain plan by using technology, diversifying suppliers, and preparing inventory.
2. Cash Reserves: Ensure you have enough capital for all your business needs.
3. Customer Experience: Offer seamless shopping experiences to stand out in the competitive ecommerce market.
With these steps, you can have a winning holiday season.
Whether you want to order more inventory to meet upcoming demand or additional working capital to invest in promotional activities, cover shipping costs, or renovate the warehouse, Myos has the solution just for you.
Using a simple, 3-step online process, you can get €10,000-2.500.000 for your ecommerce store and enjoy the following advantages:
✔️ No credit checks or personal guarantees are required.
✔️ Flexible repayments with no extra charges, allowing early settlement within 12 months.
✔️ Use your products as collateral.
✔️ Pay only a monthly fee based on the outstanding capital. Your %-fee depends on your product scoring.
✔️ Personalized support via chat, mail, or phone.
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Myos is especially beneficial for ecommerce owners, no matter the platform (Amazon, eBay, online store, etc.):
Are you interested to learn more?
Sign up today and get a free, non-binding offer!
To capitalize on Black Friday, focus on strategic planning, strong supply chain management, and promoting your deals well in advance. Ensure your website and logistics are prepared for high traffic and demand.
External financing options can provide working capital to cover inventory costs upfront, addressing cash-flow challenges. Asset-based financing is one solution that doesn't require selling equity or asset liens.
Common challenges include inventory shortages, shipping delays, overstocking, and ensuring smooth order fulfillment.
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