Chris Clowes, executive director at global supply chain and logistics consultancy, SCALA:
“Retailers have had a tough few years to contend with, as global disruption and its impact on consumer confidence have wreaked havoc with sales during the all-important golden quarter for consecutive years. Now, we see reasons to be optimistic – and predictions of a strong pre-Christmas period should certainly provide businesses with reassurance. That said, consumer confidence remains changeable, and the proof will be in the pudding when it comes to how predictions manifest in purchasing power.
Either way, businesses need to prioritise supply chain agility to ensure that they can access and supply the stock needed to meet demand – or reserve adequate warehousing space to hold it if sales dip lower than expected.
Businesses with international manufacturing and distribution networks will need to think carefully about their access to stock, as major global circumstances (such as the ongoing conflict in the Middle East) have the potential to impact global shipping routes and oil prices.
This is something we saw with the Red Sea crisis at the end of 2023, which led to increased transportation costs and delivery delays – all of which can significantly impact the bottom line and customer satisfaction levels through lack of product availability.
We also mustn’t forget the potential business implications of the UK Autumn Budget and US election, which may well cause a headache for some of those seeking to reap the rewards of Q4 2024.
Retailers have been forced to become extremely agile in recent years. Now, in the face of a potentially fruitful golden quarter, they must not rest on their laurels and should be prepared for potential disruptions. This means firming up supply chain strategies, ensuring they are robust and adaptable – and come with a good contingency plan.”
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