Peak Season Preparedness: How Accurate Forecasting Can Save You from Losing Customers and Revenue

  • Dec 12, 2023
  • 5 Min Read

No one would appreciate following a floating morning feed, only to realize the product has run out-of-the-stock at the vendor’s site or could not be shipped before the requirement or has to be backordered, and especially if it happens during the festive season!

Floating feeds on customers’ gadget should not be a disappointment, if a customer has followed a feed, 99% chance is the customer wants to make a purchase. Several times, feeds turn out to be baits from the customer’s perspective if the stock is not available at the purchasing site, it leads to breaking of trust and loss of revenue. It is a good idea to exploit customers with choices based on their purchasing pattern and history, but they should be guided to sites with stock-outs, inventory replenishment should happen well in advance. This eventually works in building good customer relations and increases loyalty. With this article, an attempt has been made to understand the importance of peak season and its preparedness for retailers and how optimization of supply chain can supersede expected profit margins.

What is Peak Season in Retail?

Typically speaking, there is no defined period or dates for peak season in retail. Each retail business is different and so is every supply chain. However, in eCommerce supply chain, peak season is important and is experienced when there is an increase in demand. This scaling in demand can be estimated by closely watching and analyzing the order trend. Otherwise, usually peak season begins in October, scales during Black Friday and touches zenith in December during festive season Christmas and New Year. This is the generic trend. However, for online retailers who have gone global, peak period is also relative to the country it is focusing.

How Forecasting Helps in Peak Season Preparedness?

Peak-season preparedness implies retailers are totally lanced to handle a sudden increase in demand. Although there is no one-size-fits-all policy or feature to outline the steps of preparedness, accurate forecasting can save retailers from losing customers and revenue. Forecasting is done by extracting information from the integrated inventory management software, order management and other supply chain management tools. The well-coordinated system is helpful in studying data available through demand curves- which highlights location, region, gender, age, product types and the nature of rising expectation. It even optimizes the use of logistics effectively; resources are better managed. It gives insight on weaknesses, which can be modified and rebranded or launched for the benefit of a business.

• Planning for Inventory Management: Forecasting helps in inventory management as with precision in the availability of data, it is easier to optimize inventory levels. Planned and timely decision over inventory replenishment can be achieved. Rather forecasting even narrows points like replenishment of orders should be achieved via increasing units of production, or by value addition, or distribution of products to new location or by restocking. For peak season demand, both overstocking or going out-of-stock, are not advisable. Planning always goes a long way, especially for small businesses, who have a limited budget for on-time order fulfillment and without compromising on quality.

• Develop Warehouse Management System: Data-driven decision is crucial in focusing on the strength of warehouse. During peak season, small businesses might face problems of storage. Forecasting via information gathered through supply chain technology helps in identifying warehouses from where inventory is used maximum. Retailers can communicate with third party warehouses for storage and space. The automatic update with warehouse management system (WMS), stockouts can be controlled and order management is streamlined. Forecasting significantly brings down the rate at which retailers or ecommerce businesses lose customers.

• Last-Mile Delivery: Integrated Inventory management software (IMS) and logistics management system of supply chain, give an accurate forecast on how to optimize shipping and carrier for flawless last-mile delivery system. In order fulfillment, last-mile connectivity is of paramount importance, here quality cannot be compromised but if retailers have an idea over location specific demand, transportation can become efficient by clubbing of orders or by communicating in advance with 3PLs.

Forecasting redefines the model of working and optimizes supply chain operations for the benefit of a business. It is greatly benefited by customer service as the flow of information is transparent and customers are continuously updated on the movement and availability of goods. With robust customer service, which is out-an-out connected through synchronized system, queries and exchange of notes with the customers can be instantly shared and demand forecast can be determined for future use and for handling rush periods.

Empower Your Business with Advatix CloudSuite™ Forecasting Tools

As peak seasons approach, the ability to anticipate and adeptly respond to value chain fluctuations is essential. Advatix CloudSuite™’s Sales & Operations Planning (S&OP) tools are the catalysts for an empowered, agile business. They allow you to anticipate shifts in real-time and strategically position your inventory across your network, optimizing costs without compromising on customer satisfaction.

Advatix CloudSuite™ is engineered to ensure your e-commerce business delivers consistently excellent performance, even during the most demanding times of the year. Leveraging advanced digital supply chain technology, the platform fosters a cohesive system, eliminating informational silos and enabling precise demand forecasting. It illuminates potential bottlenecks and reveals vulnerabilities early on, providing you with actionable insights into your current operations.

With Advatix CloudSuite™, you have access to an arsenal of straightforward yet sophisticated tools—demand forecasting, network capacity analysis, inventory management, labor planning, and logistics solutions—all designed to bolster technology readiness and enhance the customer experience. These tools are your stepping stones to not just meet but exceed key performance indicators during the peak season.

Discover how Advatix CloudSuite™’s predictive tools can elevate your business and ensure you’re well-prepared for the festive rush. Get in touch now to secure your business’s future and capture opportunities before they pass you by.