Black Friday: Reinforcing Supply Chains to Meet Demand
Black Friday, one of the busiest periods in the retail calendar, can often present challenges for even the most robust of supply chains.
With added stock requirements, fast-changing trends and omnichannel purchases to fulfil across stores, supply chains must be able to stay agile even in periods of significant pressure.
But how can businesses ensure their chains are ready to match requirements? And how can they stand up to attempts by criminals to disrupt and profit from their operation?
Here, Supply Chain Digital speaks to several industry experts to understand what action brands can take to refine and protect their supply chain ahead of Black Friday and the wider festive period.
Navigating supply chain challenges
Black Friday can put huge strain on supply chains if they are not readily equipped for increased activity.
Retailers which succeed this year, according to Amber Hovious, VP Marketing & Partnerships at Teamwork Commerce, will be those that maintain visibility over their operations – with a high degree of accuracy – to ensure they can meet customer expectations.
“Maximizing the use of inventory, at any time, is important for retailers," she explains. "However, during Black Friday, the focus on stock management should become a top priority. Being able to provide high-quality experiences is one thing, but it is a waste of time if a retailer doesn’t have a specific product available.
“Once Black Friday sales begin, retailers need to utilise the right technology that can track inventory across all locations, from the supply chain to the shop floor. The right platform can keep an accurate view of all sale – both online and in-store – as well as stock, flagging when inventory levels begin to deplete.
“Product availability can make or break a retailer’s performance during Black Friday. There is no greater disappointment for a customer than discovering an item they want is out of stock. By getting their inventory practices right during Black Friday, retailers can maximise their opportunities for success.”
Maximising supply chain success with RFID
In order to meet the targets being set by Black Friday’s continued growth, supply chains are required to deliver high quantities of stock to specific locations with short deadlines.
This can cause shrink to occur throughout, meaning that retailers are now turning to technology, such as RFID, to create more robust supply chain operations.
Dean Frew, President of the RFID Solutions Division at SML Group, explains: "Before RFID solutions, brands could only sample 1 out of 100 cartons, leading to an opaque picture of what shipment accuracy really is and enterprise systems with inaccurate inventory ledgers on order replenishment capabilities are based on. This distorted picture of inventory converts to cancelled orders and reduced sales.
“Many brands and retailers today are utilising closed-box RFID-receiving solutions to measure inbound shipping accuracy on 100% of the cartons received into distribution centres at 100% accuracy. What these brands are finding is that up to 10% of their cartons contain errors against what was expected to be within the carton.
“Replenishment during peak holiday sales periods is critical in order to avoid out-of-stocks in distribution centres and on the sales floor, but RFID also allows accurate replenishment signals to be sent to fulfil orders. This is critical to accurately differentiating what stock is available during peak omnichannel selling periods. It provides retailers with supply chain clarity and sets the foundations for an efficient operation during Black Friday weekend.
“Not only does this ensure constant availability for customers, maximising sales opportunities, but it also minimises bloated stock levels throughout the supply chain. Ultimately, this reduces unnecessary manufacture, transportation and storage costs.”
Keeping supply chains secure
As businesses grow and develop, their supply chains must do the same. Pushing forwards to increase in size and scale, the growth leaves their flanks open, putting retailers at risk of theft and cyber attacks.
According to Statista, approximately 183,000 customers were affected by supply chain cyber attacks worldwide in 2024.
Dominik Birgelen, CEO at oneclick, explains how supply chain brands can better protect themselves.
“Black Friday is often a busy period, providing countless opportunities for supply chain businesses," he says. "But, it’s also a prime time for hackers seeking vulnerabilities during the busy period. The supply chain sector remains a lucrative target for cyber criminals given it has significant amounts of critical data.
“Cyber attacks can easily disrupt supply chain operations, resulting in delays, lost revenue and a damaged reputation. This, in turn, can hinder the long-term growth of supply chain businesses. While cyber attacks can impact businesses, they can also affect customers.
“To thrive during the festive season, businesses must remain both efficient and cyber-resilient. By deploying advanced solutions based on the Zero Trust Architecture (ZTA), supply chain operators can ensure that suppliers, warehouses and logistics systems operate securely without interruption.”
However, these crimes are not just reserved for online hackers, as John Hallam, Police Liaison Officer at NBCS, outlines.
“Fraudulent load collections are, unfortunately, now becoming more common, with anything from soaps to shampoo becoming a target," John details.
“With the holiday season a lucrative time for confectionery products, criminals are currently targeting those goods due to fewer preventative security measures in comparison to tobacco/alcohol products. Logistics operators must remain vigilant and should report incidents to the police and third-party organisations that can help to detect and prevent crimes.”
As Black Friday gets closer, supply chain leaders face the challenging task of matching the demands of retailers, staying agile and secure as they deal with increased requirements.
The organisations that thrive during this period will be those that can reinforce existing chains, increase inventory accuracy, improve customer experience and protect operations against digital and physical crime.
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