Gartner Research

Demand and Supply Matching: How Retail Supply Chains Enable a Successful Holiday Season

Published: 09 November 2012

ID: G00236330

Analyst(s): Mike Griswold , Kevin Sterneckert

Summary

With many retailers realizing up to 40% of their yearly revenue in November and December, a successful holiday requires that retailers create agile and responsive supply chains able to profitably match static supply with unforeseen, and often dramatic, changes in consumer demand.

Table Of Contents
  • Impacts

Analysis

  • Changes in consumer demand preferences force retailers to create agile merchandising strategies across sales channels to address inventory quantity and positioning imbalances
  • Unforeseen demand fluctuations, coupled with relatively fixed product supplies, mandate that retailers align short-term planning and execution activities
  • During the holidays, shopper service expectations rise, compelling retailers to establish a framework and process to evaluate service and cost trade-offs

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