Black Friday 2024 is over. This year, while customers’ enthusiasm for in-person shopping was muted, online retailers saw their revenues rise yet again year-on-year. While the shopping extravaganza can provide numerous opportunities for retailers, brands also face issues such as demand fluctuations, out-of-stocks, inventory mismanagement, and increased cyber threats — especially as online shopping continues to rise in popularity.
This year, we spoke with a range of industry experts to take a deep dive into the challenges Black Friday poses for supply chains, and understand how the industry can use innovative tech to address them in the upcoming holiday shopping period and beyond.
Streamlining inventory management
There are several challenges that retailers and supply chain brands face during Black Friday and inventory mismanagement remains at the top. During the busy shopping period, brands need to maintain high inventory accuracy for effective order fulfillment. According to Amber Hovious, VP of Marketing & Partnerships at Teamwork Commerce: “During Black Friday, the focus on stock management should become a top priority.”
“Being able to provide high-quality experiences is one thing, but it is a waste of time if a retailer doesn’t have a specific product available. With increased traffic both online and in-store around Cyber Weekend, the potential for stockouts, and ultimately, disappointed customers, increases significantly.”
Similarly, Dean Drew, President of the RFID Solutions Division at SML Group, highlights the crucial role of inventory replenishment during Black Friday. Frew believes: “Replenishment during peak holiday sales periods is critical in order to avoid out of stocks in distribution centers and on the sales floor.”
It is clear that retailers should find ways to navigate the right solutions to meet their specific needs. Teamwork’s Hovious suggests: “Once Black Friday sales begin, retailers need to utilise the right technology that can track inventory across all locations, from the supply chain to the shop floor. The right platform can keep an accurate view of all sales – both online and in-store – as well as stock, flagging when inventory levels begin to deplete. From here, associates can replenish shelves, or they can redirect more stock from warehouses to various locations depending on sales demand.”
“Product availability can make or break a retailer’s performance during Black Friday.” — Amber Hovious, VP of Marketing & Partnerships, Teamwork Commerce
There is no denying that brands should invest in cutting-edge technologies that can enable them to keep accurate track of inventory which is key not only to drive sales but also to deliver high-quality customer experience. Highlighting the importance of inventory accuracy, Hovious adds: “Product availability can make or break a retailer’s performance during Black Friday. There is no greater disappointment for a customer than discovering an item they want is out of stock. By getting their inventory practices right during Black Friday, retailers can maximize their opportunities for success.”
When it comes to ensuring inventory accuracy, technology such as item-level RFID can be instrumental. SML’s Frew suggests: “By employing item-level RFID, retailers can easily track stock levels across their entire supply chain. This enables brands to identify individual products and components and trace them throughout the supply chain from production to point of sale.” Explaining why brands must use RFID technology during Black Friday, Frew adds: “It [RFID] provides retailers with supply chain clarity and sets the foundations for an efficient operation during Black Friday weekend.”
Cybersecurity & crime during Black Friday
Cybercrime remains a pressing concern during the busy shopping season. Dominik Birgelen, CEO of Oneclick AG Group points out: “Black Friday is often a busy period, providing countless opportunities for supply chain businesses. But, it’s also a prime time for hackers seeking vulnerabilities during the busy period. The supply chain sector remains a lucrative target for cybercriminals, having significant amounts of critical data.”
Cyber attacks can significantly impact operations during busy periods, along with other severe consequences. Birgelen highlights: “Cyberattacks can easily disrupt supply chain operations, resulting in delays, lost revenue, and a damaged reputation. This, in turn, can hinder the long-term growth of supply chain businesses.” Outdated software and the lack of technologies can lead to increased vulnerabilities. To protect themselves from cybercriminals, retailers and supply chain companies should lean on robust security solutions. Birgelen advises companies to use zero-trust solutions. He says: “By deploying advanced solutions based on the Zero Trust Architecture (ZTA), supply chain operators can ensure that suppliers, warehouses, and logistics systems operate securely without interruption.”
In addition to cybercrime, theft continues to be a serious issue for brands, increasing retail shrink. According to Sarah Bird, Head of Local Services at NBCS: “Supply chain crime has been making the headlines recently as a significant amount of cheddar was recently stolen from the London cheese producer Neal’s Yard Dairy – a fraudster impersonating a French retailer managed to scam the business.” Businesses must invest in significant in-store security measures to reduce losses while ensuring high-level security for their staff.
Black Friday and beyond
To capitalise on Black Friday opportunities, businesses must first address inventory and security issues. As per industry experts, leaning on innovative technologies can be a wise choice for brands to empower themselves and drive growth.
Those who can get the right tech stack in place can operate effectively, navigate the season’s demands and achieve sustainable growth.
- Digital Supply Chain
- Risk & Resilience
