Supply Chain News

Supply Chain Planning For 4th of July Fireworks

Supplying holiday fireworks is challenging, supply chain professionals from thousands of different companies supplying consumable and non-consumable products have to consider past demand trends and predict their products’ demand especially for the US 4th of July holiday.

Holidays are complex.

Take for example the upcoming Fourth of July holiday in the USA.

As a child, this holiday always represented the best of the summer break and often included fun activities like camping, fishing, spending time in a park, parades, and wonderful firework displays.

Of course there was always the abundance of kid friendly foods like hot dogs, hamburgers, bratwurst, watermelon (and the ensuing watermelon seed spitting distance contest), chips of all kinds, and lots of sugary drinks.

As an adult, watching your child experience the 4th just makes the holiday even more enjoyable.

Most people don’t think about all the planning that needs to take place in the months leading up to the 4th to make sure everything is available to make this US holiday a success.

However, supply chain professionals from thousands of different companies supplying consumable and non-consumable products have to consider past demand trends and predict their products’ demand for the upcoming holiday.

Independence Day by the Numbers

Forecasts for everything from paper plates and plastic utensils, to charcoal and lighter fluid, to suntan lotion, to food and drink of all kinds and even the amount of gasoline available for summer trips have to be created.

Procurement and manufacturing plans need to be created and executed based on forecasts. The positioning of products in the supply chain needs to be carefully planned to meet projected needs in each market and to be able to quickly respond to shortages as they occur.

No small effort to ensure millions of people in the US have a memorable 4th of July.

Planning for Holidays is a Complex Process
Creating accurate forecasts for holiday demand using a spreadsheet or basic forecasting capabilities available in ERP packages is almost impossible and will surely dampen everyone’s holiday spirits.

For the average person this is just a normal holiday but for supply chain professionals this single day encompasses a lot of variables that contribute to a complex operation.

Factors including the day of the week the holiday falls on, regional item preferences and variations in weather, just to name a few, must be considered. These are near impossible to model accurately with basic tools.

Accurate forecasts for new products introduced since the last holiday are critical. These are often the products with the highest margins while also the hardest to forecast.

Planners must account for timing variations while building accurate projections at multiple levels of aggregation to account for local trends. Product lifecycle planning capabilities including family launch curves built through product attribute segmentation and special new product forecasting algorithms ensures a steady supply of the newest products.

For many products, demand generated from holidays like the Fourth of July represents a significant portion of total yearly sales. Short-term demand often outstrips short-term production capabilities requiring pre-building based on an extended forecast.

Long-term forecast accuracy is vital for determining pre-build / pre-purchase inventory plans. Supply chain planning and optimization helps determine when and from whom to purchase materials and when and where to manufacture products to maximize customer service while minimizing total supply chain costs.

Weather patterns can drastically influence the demand for holiday products. It is essential to have a well-developed inventory deployment plan to ensure local demands can be met. In many cases if your products are not available, the consumer will purchase competing products to meet their holiday needs.

Multi-echelon inventory optimization (MEIO) is another capability that can deliver significant results for today’s complex supply chain.

MEIO (read more: The Two Levers of Inventory Optimization) can be used to determine optimal inventory buffer locations and the quantities of each item to deploy at each location.

The use of MEIO to plan for holidays can increase accuracy of the initial market and store allocation and improve the supply chains ability to respond to unexpected demand variations leading up to and during the holiday.

Next time you shop for all your holiday necessities stop and think about all the efforts by supply chain planning professionals to ensure you have everything you need to make your event memorable.


Article Topics
Videos   Supply Chain   Supply Chain Optimization   Inventory Optimization   All topics


Comments
Be the first to post a comment.
You must be logged in to post a comment. Login.

 
Latest Supply Chain News
Planning and Optimizing the Christmas Express Supply Chain
Recently I got an email from the North Pole saying that Santa Claus wanted to talk with me...I will have to admit that when you get a request from the head of the elves it is not something you want to…

Target Acquiring Same-Day Delivery Service Shipt for $550 Million to Fend Off Amazon and Walmart
Target Corp. has agreed to purchase grocery-delivery startup Shipt Inc. for $550 million, stepping up its challenge to Amazon.com Inc. and Walmart Inc. by speeding the rollout of same-day shipping.

Retail Jobs Jumped Nearly 13,000 in November
Retail industry employment increased by an unusually high 12,900 jobs in November over October, according to the National Retail Federation.

Ellen MacArthur & Stella McCartney Campaign to Reduce Retail Fashion Industry Waste
Recently at London's Victoria & Albert Museum, designer Stella McCartney and Dame Ellen MacArthur cohosted the launch of a sustainability report that sets out a new vision for the retail fashion industry.


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles