New research from Manhattan Associates shows that this holiday season is slated to be one of change for retailers and consumers alike.
Both groups, as well as supply chain leaders, face a new technology landscape, with rapidly evolving technology like artificial intelligence taking center stage; a precarious geopolitical environment and economic landscape impacting both sides of the shopping experience and more.
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Inventory continues to be a top-of-mind issue for retailers and supply chain leaders alike; though it’s a sticking point all year round, holiday season only exacerbates anxieties over not meeting consumer demand—or overestimating how consumers might purchase.
Nearly 39 percent of retailers said their biggest concern for the holiday season is not having enough inventory, though nearly nine in 10 retailers said they have processes and mechanisms to help make sure on-trend products are available to consumers during high-traffic shopping periods, whether online or in stores.
However, the level of alarm is higher among supply chain leaders, 62 percent of whom said they have worries over inventory shortages. Ann Ruckstuhl, chief marketing officer for Manhattan, said that may be due to a broader level of visibility into the landscape among supply chain players, as compared with retail planners and merchandisers.
“The retailers understand the consumer demand, the patterns, the merchandising, their forecasting, but then the supply chain guys have to make it happen. To make it happen, they understand it’s not just the science of the supply chain—warehousing, transportation, having enough ships, planes and automobiles. These guys have to deal with the economy, they have to deal with labor, they have to deal with geopolitics, they have to deal with infrastructure disruptions. They see every aspect of what could possibly go wrong,” Ruckstuhl told Sourcing Journal.
Seven in 10 retailers indicated that they plan to up their levels of in-store inventory to meet the demand for last-minute shopping among consumers. Companies reliant on the East Coast ports for shipping may be feeling relief knowing their last-minute orders from overseas suppliers will not be held up by a strike through this holiday season; just days ago, that prospect was looking likely, though most orders placed ahead of time had already made it through the ports in time for the holidays.
Part of the know-how in getting ahead of supply chain delays may have come from the integration of advanced technology. According to Manhattan, eight in 10 leaders in retail or supply chain will use AI to aid inventory management and forecasting. Startups like Flagship, Syrup and Particl have been vying to help retailers do so.