Once again in October 2021, I wrote in this column that the peak season of that year will not be traditional. This lack of normal life was due to the problems of the supply chain caused by one time in a lifetime (we hope). We were then dealing with what was called “what a mole”: a problem in the supply chain will appear, and we are hitting it with a solution, just to see another one that arises.
A lot of stock was brought during the summer of 2021 to ensure that customers did not face the empty shelves of the previous peak season – which was, of course, the first Christmas of the roaming epidemic. But there was a negative aspect of that: the efforts made to raise stocks that led to the high acquisition, transportation and pregnancy, which led to the enhancement of inflation and the high interest rates that have been with us since then.
On the brighter side, the epidemic taught us some important lessons about agility and flexibility. In the face of almost continuous disorders, the supply chain managers quickly learned how to run ten cents – their service is well during our current year of uncertainty.
Take the next holiday season, for example. The newly imposed trade policies divided the 2025 holiday season into two distinct parts – what did some of the supply chain professionals “Tight holiday summit” call.
It started when retailers got the first potential tariff. We did not even finish the 2024 holiday season when companies started the front purchases to enhance inventory before the tariffs. This continued throughout the spring, when we saw quickly changing tariff policies and increased stocks to fit. But these importers were not alone in their strategy. With a lot of the goal of avoiding definitions, we have seen an increase in the demand for transportation and warehouse capacity, which led to significant increases in the total landing costs.
Then a lot of this new stock was sent to the storage until required. This is where we are today, and we enter the second part of our division season. The focus now turns into DCS and trucks needed to transport products to time stores to shop on holidays.
We have a few months to see if this strategic gambling pays its fruits. Will the stock that was requested early will be proven to be the correct goods, and is that sufficient? Will consumers be in a mood to buy this holiday season? What happens when the time comes to renew the stock, and how much is the price increase caused by the customs tariff that will be transferred to consumers, which leads to an increase in inflation?
Throughout this contract, one thing can be said – the masses of the masses are not boring to see them.
