Merchandise planning and supply chain management are tough enough during typical selling seasons. But this is especially complicated during peak selling seasons — when the proper in-store mix of merchandise contributes heavily to whether a retailer is profitable or stuck with a lot of items that must be marked down.

Clare Rayner, a well-known retail consultant based in the United Kingdom, puts it this way: “Planning ahead for peak seasons (where peak season is December) starts as  early as February/March. Indicative volume forecasts are calculated and using  these, the supply chain planners can start to estimate the requirements for warehousing  and transport capacities. Many years ago, I worked for Dixons Stores Group in the supply chain. Typically, the decision was taken to allow the network to  exceed capacity for peak weeks, relying on temporary storage and extra warehouse shifts. The supplementary resources were booked well in advance, the  reason of course was to avoid there being too much redundancy in the network during normal trading conditions.  Additionally, buyers worked closely with suppliers to leverage capacity in their supply chain networks during peak season. Some suppliers held stock of fast-selling items in warehousing in Northern France, shipping to the UK on a call off basis.”

Click the image to learn more from Rayner and Manthan Systems.