The upcoming holiday season is expected to be yet another record-breaking year, despite the rising costs for consumers. According to Salesforce, we should expect 2% year-over-year global sales growth for November and December, totalling $1.19 trillion. Meanwhile, the National Retail Federation predicts a 2.5 to 3.5 per cent higher consumer spending in the U.S. this holiday season than they did in 2023.
Although different companies provide different estimations, most agree that this year's holiday season will outperform last year's. The logistics and retail sectors are already gearing up for changes in market dynamics, with many early Black Friday sales taking place since late October.
According to recent data from Manhattan Associates, many businesses are adjusting to lower prices and implementing leaner supply chains to maintain efficiency and stay competitive. Unfortunately, not everything is up to them. Other impactful events, such as the U.S. and Canada port strikes, are putting additional pressure on the supply chain and creating a backlog in shipping.
KATA Global Logistics is actively monitoring the situation, helping the companies navigate this evolving landscape with tailored logistics solutions, ensuring a seamless holiday season for all stakeholders. Here are two important ways KATA is preparing for the upcoming holiday season.
Leaner Supply Chains to Meet Consumer Demands
A recent survey from Manhattan Associates indicates that approximately 61% of supply chain executives expect their inventory levels to decrease in preparation for the 2024 holiday season. Businesses prioritise efficiency and agility, aiming to maintain the right inventory level to meet consumer demand without overstocking. This shift underscores the importance of providing flexible and adaptive logistics solutions for KATA Global Logistics.
The company’s end-to-end logistics services, including customs clearances, warehousing, and distribution, allow companies to streamline their supply chains. By optimising the shipping processes and offering direct and indirect representation, KATA ensures that goods move quickly through crucial markets like the Netherlands, the U.K., the U.S., and China. This efficiency is essential in an environment where businesses aim to trim excess costs while still meeting market demand.
Impact of Lower Prices on the Market
The Manhattan Associates survey also highlights that approximately 70% of respondents anticipate a competitive pricing environment this holiday season. Lower consumer spending power means businesses strive to offer more attractive pricing to capture sales. This trend pressures companies to seek cost-effective logistics solutions to maintain their margins.
KATA Global Logistics is equipped to meet this challenge with its cost-efficient shipping options. The company’s ability to offer limited fiscal representation ensures that clients can expedite their shipments into the EU without unnecessary delays, allowing them to seize sales opportunities even in a price-sensitive market. KATA’s expertise in handling temporary imports and bonded warehousing enables businesses to optimise their supply chain strategies during peak season.
With the holiday season bringing unique challenges and opportunities, businesses need logistics partners that understand the nuances of supply chain management in peak periods. KATA Global Logistics prides itself on offering tailored solutions that adapt to shifting market needs. Its focus on efficiency, cost-effectiveness, and customer satisfaction allows KATA to support clients in managing the complexities of the holiday season.
Contact KATA today to learn how you can optimise your logistics strategy and make this holiday season your most successful yet.
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