16th December 2024
Christmas supply chain challenges are critical, say Manhattan Associates. With the holiday season here, savvy shoppers are hunting for the best deals, putting pressure on retail bottom lines. Manhattan Associates’ 2024 Supply Chain Confidence Survey reveals that 93% of consumers report feeling the pinch due to cost of living and actively hunting for bargains. This presents a challenge, but also a chance for retailers to connect with value-conscious shoppers and increase sales this Christmas.
Where businesses stand today
Manhattan’s survey further reveals that 70% of retail leaders anticipate higher holiday costs this year, while 60% of consumers plan to buy fewer gifts and 57% are actively seeking less expensive options.
This shift in consumer behaviour demands a new level of business agility: retailers must move quickly to adapt to this new environment, offering value-driven deals and frictionless shopping experiences, both online and in-store. As Martin Lockwood, Senior Director at Manhattan Associates, points out, “Even the most seasoned retailers are kept on their toes by shifting shopping habits. Aligning inventory and fulfilment operations with changing behaviours is crucial.”
Tech-savvy retailers take the lead
However, it’s not all gloom and doom. Many retailers are embracing technology and building more resilient supply chain networks capable to adapting to fast-paced behavioural change. The survey highlights that 52% of supply chain leaders are investing in improved logistics software, while 61% of retail leaders report recent investments in new technologies to improve supply chain efficiency. Automation (35%) and AI (80%) are also playing a key role in optimising operations and meeting consumer demand.
According to Lockwood, proactive planning is paramount. “Businesses are prioritising readiness and flexibility to navigate unforeseen challenges and maximise holiday sales opportunities”, he continues. “Focusing on a long-term, resilient digital core and establishing robust relationships with suppliers is essential for sustained success. Inventory visibility and unified planning and execution capabilities are tactics essential for mitigating possible holiday season disruptions. The challenges are real, but so are the opportunities. Through investment in long-term supply chain strategies, retailers can position themselves for sustained success in the year ahead.”
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