Black Friday Cyber Monday Logistics
Retail is one of the largest industries in the United States, generating $7.04 billion in 2022, and its significance continues to grow each year. Online retailers like Amazon have permanently changed customer expectations by offering various products, speedy deliveries, and reliable return policies. Thanks to that, customers now expect their orders to be fulfilled without delays.
This is especially true for retail’s two most significant days: Black Friday and Cyber Monday (BFCM). These are the first shopping days of the holiday season. Consumers are treated to special discounts and deals as they load up on presents for their loved ones, knowing their items will be on their doorsteps as soon as the next day.
But while the customer’s side of things is merry and bright, the retailer’s side of BFCM is a nightmare straight out of Halloween. Preparations for the day must be made months in advance; inventories must be stocked and ready for BFCM and the entire holiday season, while retailers establish effective return policies and markers for data analysis.
Why are Black Friday and Cyber Monday Important?
Black Friday and Cyber Monday are considered the year’s biggest shopping days, but each one aims at different consumers and commodities.
Black Friday focuses more on traditional brick-and-mortar stores, though online shopping has taken precedence over physical stores. Some still prefer shopping in person on Black Friday, as this allows them to buy oversized, expensive items like appliances and electronics without paying shipping fees. Customers can also receive in-store advice on what to purchase.
Cyber Monday, meanwhile, is all about online ecommerce. Smaller items, like clothes, toys, accessories, books, and health and beauty products, are all the rage online. They aren’t as expensive to ship overnight and are easy to discount, allowing for a huge volume of orders to pile up during CM.
Retailers heavily benefit from both sales days, as their products are sold more than they may see on a typical business day. But there are other reasons why BFCM is vital for retailers and businesses:
Exposure: People searching for great deals and discounts will drawn to new and exciting products, exposing products that wouldn’t have a chance on a typical business day.
Loyal Customer Base: If customers are satisfied with their purchases during their BFCM shopping experience, they will want to buy from that retailer again.
Immediate Revenue: BFCM is an automatic money-maker for retailers. Consumers spent $9.8 billion online on Black Friday in 2023, and 2024’s sales for BFCM are estimated to reach $75 billion.
Challenges with BFCM
As beneficial and lucrative as BFCM is for retailers, many challenges come with preparing for it.
Complications with Supply Chain: There’s much to juggle when preparing your BFCM logistics. Inventory management, distribution management, customer expectations, and costs must work together; a single slip-up can jeopardize the entire operation.
Limited Time Affair: BFCM is only a few days on the calendar, but they are some of the most chaotic for a retailer. There’s only a short time between BFCM and the end of the holiday season to ship out inventory and handle returns.
Unrealistic Demands: Larger retailers like Amazon and Walmart can provide same-day or next-day delivery due to their ample personnel, equipment, and resources. Conversely, smaller retailers may struggle to meet such tight deadlines while aiming to offer customers quick and convenient delivery without compromising quality and service.
Ineffective Communication: Retailers can partner with logistics providers to make shipping more manageable, but both sides must set their expectations for each other. A lack of communication can create issues with scheduling and timing deliveries out.
Economic Issues: Shipping can be costly regularly, but it becomes ludicrously expensive during BFCM. Discounts and sales lower how much a retailer makes. There can also be issues stemming from the economy, like inflation.
How to Plan Your Next BFCM
If Black Friday or Cyber Monday is only a few weeks away, you may not have time to formulate a perfect logistics plan. You’re already shipping things out! But if you are still a while away from the holiday season or are reevaluating your strategy for next year, then here are some strategies you can implement for your next BFCM logistics operations:
1. Forecast Demand and Sales Figures
When planning for the holidays, use data analytics from the past few years and current economic trends to determine how you’ll approach the upcoming BFCM season. Your inventory levels and marketing plans will be based on this forecasting, so be thorough while mapping things out.
2. Expand Sales Dates
In recent years, retailers have expanded BFCM beyond just the weekend after Thanksgiving; sales begin weeks to a month beforehand. Consider extending your deals and discounts beyond BFCM to capitalize on seasonal holiday demand.
3. Cross-Train Employees
Everyone has a part to play during the holidays, even if their part is something they usually wouldn’t be doing. Try to have employees learn from multiple departments to jump in and help desperate areas in your business.
4. Automate As Much as Possible
Automation has streamlined the supply chain, simplifying tasks that would otherwise be laborious and time-consuming. Some areas where you can automate include customer service (via online help desks) and shipment tracking (automatic email notifications to customers).
5. Try Cross Docking
Regular docking can take time and money. Try cross-docking; instantly transferring loads from one truck straight into another without storing them can reduce inventory costs and delivery estimates.
6. Prepackage Sale Items
Having packages ready ahead of time can be hugely beneficial for distribution providers. Try or ask your 3PL provider about kitting or prepackaging your products to reduce packaging waste and distribution costs.
7. Evaluate Reverse Logistics
What is your company’s return policy? Evaluate what your company does with returns and exchanges, and determine if you need to alter your policies so they better satisfy your customers.
8. Take Care of Employees
Company morale often dives during the busy holiday season, but don’t let the stress affect your operations. Open communication is critical; regularly contact your employees and be honest about progress and issues.
To successfully manage Black Friday and Cyber Monday, retailers must carefully plan and innovate to keep operations running smoothly. By forecasting demand, automating processes, and supporting employees, they can efficiently handle the surge in demand.
Partnering with a trusted logistics provider and staying adaptable can turn the challenges of BFCM into opportunities. By implementing the right strategies and focusing on both customer satisfaction and internal operations, retailers can make the most of this critical shopping period—and set themselves up for a solid finish to the holiday season.
