8 top tips to rein in seasonal demand fluctuations
Every year, UK customers spend over £339 billion on furniture and homeware products. When you consider that business in the sector stock everything from winter blankets to garden patio furniture, seasonality can have a huge influence on demand.
Given the potential for huge fluctuations in demand, this can leave businesses exposed to a high level of uncertainty. For instance, when exactly does a new season start? When does the season finish? How can you be sure to what impact the seasonal influence will have on demand? Unless a business takes steps to control all of these factors, seasonal spikes in demand can quickly spiral out of control.
For some seasonal products, the uplift in demand can be easily anticipated. For instance, in the winter months, demand for barbeques drops off while demand for electric heaters soars. This is not rocket science: you know that these articles have a seasonal demand pattern. However, what you don’t know is exactly when the season will start as this is dependent on a whole range of factors such as the consumer’s mindset or even the weather.
To help you optimise your operations before, during and after a seasonal peak, we have highlighted 8 top tips covering the following points to help you stay ahead of demand fluctuations:
- Achieve optimal stock levels before, after and during a seasonal peak
- Align service levels with customer expectations
- Guarantee availability of seasonal products while avoiding excess stock