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Logistics of the Holiday Season

LOGISTICS OF THE Holiday Season The Holiday Season is a time when consumer demand can make or break a business. The holiday shopping season represents as much as 40% of annual sales for some retailers. Aside from professionals in the logistics industry, few people will probably put any thought into how their beloved consumer products find their way onto shelves. A lot must happen to get the product on the shelves Average Amount Consumers Planned and into the hands of the consumer. High demand for products means an increase in logistical demands to ensure the product gets there on-time, and in working order. Let's explore how logistics plays an important role in our holiday season. to Spend For Gifts $688.81 Who is the busiest? For some retailers, the holiday season can represent anywhere between 25-40% of annual sales. In 2010, holiday sales represented 19% of total retail industry sales. $26,701,000 Annual Sales 28.91% of Annual Sales During the Holidays Jewelry Stores DEC $188,894,000 Annual Sales 24.34% of Annual Sales During the Holidays Department Stores is the busiest anticipated $213,872,000 Annual Sales shipping day of 2011 for Fed Ex - they plan to ship around 17 million packages on this day. This holiday season, they Clothing and Accessories Stores 22.73% of Annual Sales During the Holidays expect to ship a record $100,471,000 Annual Sales breaking amount of 260,000,000 22.63% of Annual Sales During the Holidays Electronics and Appliance Stores packages. Uhen does Holiday Shopping Begin? Although technically the Holiday Season begins on November 1, businesses and logistics providers must start preparing for it well in advance to meet the demand. 38% of people admit to starting their holiday shopping before November and 13% before September! Holidays included in the 61 days include Thanksgiving, Christmas, Hanukkah, and Kwanza Thanksgiving Day 13% Before September Approximately 22 million people said they put down the pumpkin pie and hit the stores on Thanksgiving in 2010, up from 10.3 million in 2005. 6% September Black Friday 19% October $10.69 was spent on Black Friday in 2010. Billion $365.34 was the average amount spent per consumer on Black Friday in 2010. 212 shoppers visited stores and online websites on Black Friday in 2010. Million 40% November m Cyber Monday $9 was the recorded amount of purchases in 2010. Million $194.89 was the average online order on Cyber Monday in 2010. December 18% 1-14 Christmas Eve 23 people were shopping on Christmas Eve. 4% Dec. 14 - 31 Million Online & Mobile øShopping E-Commerce has become such a significant portion of total sales for $27.5 many retailers that the entire supply chain strategy is being reassessed, effectively catapulting e-commerce to the top of the list of priorities for the Retail Sales Online in 2010 retail industry. Billion in Last year, 44% of holiday shoppers made a purchase on the web. In 2010, more than one quarter of smart phone owners planned to make a holiday purchase via their phone, and that number soared to nearly 50% among 18-24 yo. In total, mobile shopping is expected to reach $9B this year, compared to $2.4B in 2010. Smart Phone Users Who Made Holiday Purchases with their Mobile Devices AGE 65 + 6.9% 55 - 64 10.4% 45 - 54 15.3% 35 - 44 26.4% 25 - 34 43.5% 18 - 24 45.0% 0% 10% 20% 30% 40% 50% 60% = Holiday Shipping Why Consumers Choose to Holiday Shop Online Rather Than In Stores 35.1% 33.1% 31.5% 30.8% Due to consumers wanting to 24-hour shopping Easier to compare Free shipping I don't want to fight convenience prices offers the crowds in the avoid the common frustrations mall/traditional of shopping in stores, delivery stores drivers log some serious mileage to deliver holiday gifts. Logistics 29.2% 11.5% 17.4% providers have the task of finding the most efficient methods of Easier to find items delivering and transporting More convenient to Better variety online online than in stores shop online holiday packages. ups ups Hypothetical average speed of trucks 32 1,800 Hypothetical average speed of sleigh miles per hour miles per second 500,000,000 316,899,308 Distance traveled Distance traveled during holidays during holidays miles miles How Far is 500,000,000 Miles? 238,900 miles The Moon 34,796,809 miles Mars 390.682.809 miles Jupiter 1,200,000,000 miles In other words, every Holiday Seașon, UPS trucks collectively drive halfway to Saturn! Saturn Job Creation Statistics Being so busy during the holiday season means retailers and logistics companies require more help. In addition to retailers' seasonal positions, retail indirectly creates many jobs throughout the holiday season for workers in logistics, transportation, manufacturing and fulfillment. Fed Ex plans to hire 20,0000 seasonal workers, which is 3,000 more than in 2010. This year, NRF estimates that retailers will hire between 480,000 and 500,000 seasonal employees, comparable to the 496,000 they hired last holiday season and substantially more than the 333,000 hired in 2009. 24% of jobs in the United States are directly or indirectly supported by the retail industry. It is not just retail workers whose jobs depend upon a vibrant retail industry. From construction to manufacturing to transportation, about 13 million workers in other industries also depend upon retail for their success. Holiday Relurns Nearly Reverse logistics is the official title for the long 60% return process. Reverse logistics is the challenging task of processing, storing, and shipping items back for repairs, deconstruction, disposal or redistribution. of Americans receive unwanted The economic impact of returned goods totals over gifts during the holidays, and about $100 billion each year in America alone. Logistics plays a vital role in making returned goods get where 20% they need to go, and can be a source of lost revenue without a comprehensive reverse logistics system. Logistics companies are responsible for shortening the link from where the return originated to the time it can be resold. This includes collecting and of people ended up returning a scanning, crediting the store, and invoicing vendors. holiday gift in 2010. Sourcesésp_id=6964 This infographic was provided by derby SUPPLY CHAIN SOLUTIONS

Logistics of the Holiday Season

shared by nataliedbs on Nov 21
Logistics have a critical role in getting products to consumers during the holiday season, from shipping to getting returns back to the manufacturer. This infographic was created by Derby Supply Chain...


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