Here’s how retailers are prepping their supply chains for the holidays
A new survey provides insight into retailer supply chain concerns for the upcoming holiday season.
According to findings of the Manhattan Associates “2024 Supply Chain Confidence Survey,” 61% of surveyed retailers reported recent investments in new technologies to improve the efficiency of their supply chains and 44% plan to make fewer seasonal hires in stores this year.
More than one-third of the retailers surveyed will be implementing the latest automation technologies to manage last-minute order surges (42%) and hedge against rising costs (35%).
To mitigate the impact of inflation, nearly 70% of retailer respondents said they will offer increased sales and discounts, while 56% will offer discounts via their loyalty programs and 34% will offer flexible payment options.
Eight-in-10 retailer respondents see artificial intelligence as a solution for holiday supply chain issues and are leveraging AI tools to improve inventory management, demand forecasting, and customer service.
Other interesting retailer findings include:
- More than nine-in-10 (92%) surveyed retailers feel assured in their fulfillment capabilities.
- Close to nine-in-10 (87%) retailer respondents have taken steps to keep shelves stocked with trending and high-demand holiday products.
- Approximately 70% of retailer respondents are anticipating higher holiday costs.
Supply chain leaders
Manhattan Associates also surveyed leaders of supply chain organizations about holiday supply chain plans and issues. Responses included:
- Close to nine-in-10 (87%) supply chain respondents are prepared for potential disruptions during the holiday season.
- Eight-in-10 supply chain respondents also see AI as a solution for holiday supply chain issues.
- Six-in-10 (nearly 61%) supply chain respondents reported having invested in new technologies and processes to run more efficiently and reduce overall costs this season.
- Close to six-in-10 (58%) supply chain respondents plan to increase their workforce to manage peak omnichannel demand.
Consumers
Finally, the survey also asked consumers about their thoughts on the 2024 holiday season. Highlights included:
- Eighty-five percent of consumer respondents said inflation and increased prices are a top holiday concern.
- Nearly 65% of surveyed consumers rate free shipping as a top priority this holiday season.
- Close to two-in-three (64%) consumer respondents report having to reduce their spending on non-essential goods due to inflation.
- More than half (52%) of consumer respondents confirmed they will prioritize (and are willing to wait for) deals and discounts over every other shopping criteria this season.
- Nearly half (46%) of consumer respondents do not anticipate major delivery issues this year and only 34% expect some delays.
- Four-in-10 surveyed consumers are planning their shopping journeys earlier to spread out their holiday spending.
[READ MORE: Survey: Shipping costs, on-time deliveries critical for holiday shoppers]
"This is a unique holiday season in many respects, but retail and supply chain leaders seem prepared for the challenge and look confident in their ability to meet consumer expectations," said Ann Sung Ruckstuhl, senior VP and chief marketing officer of Manhattan Associates. "The importance of an agile and nimble supply chain is evident, and deploying the right technology is more critical than ever before. The key to matching consumer expectations and giving shoppers the memorable experience they demand is to tighten the back end, have complete insight into every part of the product’s journey, and truly embrace a unified commerce approach in order to succeed."
The survey was fielded by a third-party provider and conducted from Aug. 23 – Sept. 6, 2024. Responses were collected from 500 management or senior-level officers in retail and supply chain logistics organizations in the U.S. In addition, 500 adult consumers in the U.S. age 18 and older were surveyed about their sentiments and plans going into the 2024 holiday shopping period.
