The holiday season is a time for joy — and for supply chain chaos. This year is no exception. The five-day period from Thanksgiving to Cyber Monday shattered online retail sales records, with U.S. consumers spending $41.1 billion, an increase of 8.1% over 2023. The National Retail Federation (NRF) projects that in-person and online shopping during the 2024 holiday season will grow 2.5 to 3.5% year-over-year, accounting for between $979.5 billion and $989 billion in total sales.
It’s easy to see the value of advanced digital solutions in the lead-up to the peak season. Manufacturers and retailers must create accurate demand forecasts, get the right inventory in the right place, and line up labor, trucks and other assets. Like a certain red-nosed reindeer, advanced supply chain software is ideal for helping companies navigate these complex, urgent challenges.
But the post-peak season also brings significant supply chain challenges, which are often overlooked. As the whirlwind of festive shopping subsides, businesses face the less exciting challenge of restoring balance: Managing leftover inventory, handling a flood of returns and recalibrating for unpredictable demand in the new year. Digital solutions are equally valuable in optimizing service, costs, sustainability and other outcomes during this slightly less wonderful time of the year.
Let’s take a quick look at how advanced software, enabled by artificial intelligence (AI), can help companies weather the post-holiday storm.
Achieving profitable, dynamic inventory optimization
Huge holiday order volumes are fantastic. But now retailers and manufacturers with direct-to-consumer (D2C) capabilities need to fulfil those orders as quickly, efficiently and cost-effectively as possible. Blue Yonder’s real-time visibility tools provide a comprehensive view of inventory across the entire network, ensuring that businesses can respond dynamically to changing conditions as they fulfill online orders and restock stores.
Our innovative Intelligent Rebalancer solution is especially valuable during demand spikes and volatile market events such as the holiday season. It leverages decision science and configurable rules to automatically reassign inventory in the most optimal way, effortlessly
managing complex trade-offs to balance customer satisfaction with cost control. It executes in real time, providing your supply chain with unprecedented inventory agility — and profitability — in the post-peak season.
Solving the problem of returns management
The good news is that 2024 holiday sales are setting new records. The bad news? Retailers and manufacturers also are experiencing record-breaking return rates, according to the NRF. Returned merchandise will account for $890 billion this year, or 16.9% of retailers’ total 2024 sales. These numbers are up from $743 billion, or 14.5% of total sales, in 2023. While returned merchandise is a challenge throughout the year, the NRF reports that returns increase by 17% following the holidays.
There’s no denying the fact that returns are costly and inefficient. In a Blue Yonder survey, 80% of retailers said improving the returns process is either a high or very high priority for their business. While 89% of retailers reported that they’ve tightened their returns rules in response, merchandise returns will always be an unfortunate reality.
Advanced supply chain software can help optimize the returns process. By applying pre-defined orchestration rules, AI-enabled decision engines can make optimal choices about how, where and when returns are processed. By minimizing delays and optimizing returned merchandise placement, retailers can ensure returned items re-enter the market faster, reducing waste and boosting profitability.
Preparing accurate demand plans for the new year
Now that the peak season is over, it’s time to take a deep breath and look toward the uncertainties associated with the new year. While some reports say short-term consumer confidence is up, other sources say consumers are worried in the longer term about the impact of potential new tariffs. What does all that mean for your business?
Demand planning capabilities from Blue Yonder provide the answers you need to prepare for a profitable 2025. These powerful solutions have been proven to enhance forecast accuracy by an average of 12% as they combine internal data with external, complex and interrelated variables like weather patterns, pricing and promos, product characteristics and events to create a holistic, risk-aware forecast. No matter what the new year brings, retailers can forecast with precision, ensuring inventory is available in the right place at the right time.
Collaboration: The key to mastering post-peak challenges
Like the reindeer who pull Santa’s sleigh, it takes a team to master the post-peak season. In today’s volatile, frequently disrupted retail environment, the entire supply chain must share real-time awareness and respond to any new conditions in a dynamic, orchestrated manner.
Enabling this close collaboration lies at the heart of Blue Yonder’s philosophy. Our tightly integrated solutions allow customer teams across merchandising, logistics and operations to work in harmony — pursuing the same objectives and informed by the same data. Blue Yonder’s powerful “what if” simulation capabilities allow cross-functional teams to collaborate on new sourcing routes, fulfillment scenarios and other innovations that drive better results every day of the year..
Ready to conquer the complexities of post-peak operations and build a supply chain that’s resilient year-round? Watch Blue Yonder’s new video that highlights 12 easy steps you can take to break down barriers, integrate your systems, and build an agile, resilient supply chain. Whatever the season, these 12 steps will help you enhance collaboration and achieve more impactful results.
