{"id":215,"date":"2013-09-10T14:14:31","date_gmt":"2013-09-10T14:14:31","guid":{"rendered":"https:\/\/shipstc.com\/blog\/?p=215"},"modified":"2021-06-22T15:05:25","modified_gmt":"2021-06-22T15:05:25","slug":"retail-procurement-preparing-for-the-holiday-season","status":"publish","type":"post","link":"https:\/\/shipstc.com\/blog\/retail-procurement-preparing-for-the-holiday-season\/","title":{"rendered":"Retail Procurement: Preparing for the Holiday Season"},"content":{"rendered":"

As the holiday season approaches, gifts and displays have been pouring into retail distribution centers. To be well organized for each upcoming holiday season, retailers must implement smart planning<\/a> throughout the entire year, usually beginning in August. This will allow retail procurement to find the correct balance for Black Friday and Cyber Monday shopping sprees, as well as the remainder of the holiday season.<\/p>\n

Smart Planning<\/b><\/p>\n

The simple steps to the procurement lifecycle that most individuals generally agree upon are as follows.<\/p>\n

1.\u00a0Information gathering
\n2.\u00a0Supplier contact
\n3.\u00a0Background review
\n4.\u00a0Negotiation
\n5.\u00a0Fulfillment
\n6.\u00a0Consumption
\n7.\u00a0Renewal<\/p>\n

The most important aspect of smart planning in retail procurement is to order the correct quantities of products thus ensuring renewal demands are met. This includes contingency planning for natural disasters and consumer spending habits that can cause logistical disruptions. The goal of smart planning is to capture the greatest number of sales without being overburdened with excess stock.<\/p>\n

In recent years, retail procurement has learned to balance merchandise by improving the overall supply chain. This accounts for improvements in the amount of products to purchase\/manufacture, where to place them and how to get them to the stores. Two major contributors to these improvements are technology and flexible agreements with shipping lines.<\/a><\/p>\n

Order Quantities<\/b><\/p>\n

For brick-and-mortar stores, the key to a perfect holiday season is for retail procurement to predict the number of each product the company requires at each retailer. Although there is an arbitrary calculation, the correct answer varies greatly per location. The greatest challenges for retail procurement to calculate the correct quantities include:<\/p>\n