All retailers are asking themselves the same question, and are trying to avoid as much as possible the rising costs and stock-outs caused by the supply chain crisis.
It is difficult to predict how long this situation will last, so we would like to give you some tips to help you face these problems:
Change the location of production factories.
If the stock is at a standstill in the factories (suppliers’ or your own) and these are located in distant places, choose to look for closer alternatives for their transfer, or diversify production in different places with “Long Circuit-Short Circuit” models.
Before placing a new order, check the rest of the shops.
It seems absurd but, if a product is out of stock in several shops, before placing an order with suppliers that you know will not arrive on time, why not try moving it from other shops where it is available and where demand is not expected to be so high?
Prioritise land transport to avoid the maritime supply crisis.
Now that the situation is in chaos and the ports are congested, before you venture to bring the goods in quickly by air and spend a fortune, why not try road transport? Of course it won’t be as fast and flexible as the other modes, but it is the cheapest mode of transport at the moment and can prevent your transport costs from getting even more expensive.
Offer added value to compensate for price increases.
If the situation forces you to raise the prices of your products to maintain your margins and the profitability of your products, offset the price increase by offering added value with your products, such as greater flexibility in payment, substitutive products, prizes, competitions… Let your imagination run wild!
All you need to do is to make the customer perceive the price increase in the least negative way possible.
Plan as much as you can.
Taking into account the life cycle of the product, It seems ridiculous to say this in the current situation, but we do not know how many months we will be like this, and it may be that in the coming months of december and january things will get even worse. So it is advisable to make the most of now and put all your efforts into filling the warehouses as much as you can for what may happen.
In the worst case scenario, if you lack logistics space, you can always consider a cross-dock system with your suppliers.
Be clear and transparent with the customer.
If things are going to get bad and we are not going to be able to meet delivery deadlines, it is better to let the customer know before the delivery day arrives and they are even more disappointed.
So now you know, if you want to make the most of this Black Friday and the holiday season without being affected by the current supply crisis, don’t forget to implement these tips from our international retail experts.