Many businesses experience chaos when they reach the Christmas and New Year season. Suddenly, there are increased orders, suppliers are unable to keep up with those orders, logistic networks slow down, and business margins decrease. It is usually a surprise to the majority of companies that the problems occurring during Q4 usually originate from earlier in the year.
Forward-thinking companies do not begin preparing for Q4 in October. Instead, they start planning for Q4 in the second quarter of the year.
April through June is the most critical period during which to plan for the year. By properly planning for Q2, companies enter the holiday season with stable supply chains, well defined pricing, and secure delivery dates.
Why Do Companies Have Time to Prepare for Q2?
When Q4 arrives, the price of raw materials has already increased, lead times with suppliers have extended, and logistic networks are at maximum capacity. While every company in Q4 is in chaos and dealing with all of the issues that arise, in Q2, it is completely different, as there is still capacity available at the time, pricing is stable, and buyers are still willing to be involved with their purchasing than when they are in panic mode. Therefore, it is logical to make the business-related decisions that affect holiday related activity at that time.
Prepare For Q4 By Creating Realistic Demand Forecasting
Many businesses do not take the time to review last year’s holiday order patterns when creating their demand forecasts for Q4. It is critical that, when reviewing last year’s Christmas season order patterns, that the business identifies fast moving products, late deliveries, and quality problems. And also, to have an understanding of which customers increased their volume of purchase, and which customers reduced their purchase volume.
Select Product Range and Packaging
Festive buyers are overwhelmed by too many choices; they want clear options.
Before entering Q3, businesses should have completed product specification, colour(s), design variations, packaging style/size, bundle option(s) and minimum quantity per order. Being prepared prior to Q3 will allow businesses to respond quickly and convert more leads. Digital product listings (especially e-commerce sites) allow Buyers to evaluate and compare products before making contact for further information or quote requests.
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Offer Visibility to Buyers First
Many Buyers compiles a list of potential suppliers long before they actually place an order for products. If your product is not visible early during their selection process, you may not be given an opportunity to quote.
Using an ecommerce platform will improve your discoverability early in the buying period and allow Buyers to view and consider your products before they get overwhelmed during peak buying times.
Prepare Capacity and Documentation
Festive buying puts pressure on your business to deliver products. During this time of increased strain, many companies discover flaws in their ability to meet demand due to insufficient capacity or delays in processing and receiving required paperwork.
Q2 is the best time to schedule preventive maintenance on your equipment, train and onboard new employees, and prepare all of your necessary documentation (certifications, testing reports, etc.). This will help to eliminate last-minute panic situations and increase buyer confidence in your company’s ability to deliver on time.
How to Use Digital Platforms for Planning at Q2
Traditionally, planning was based on personal networks and assumptions. In contrast, today’s planning is largely data-driven and requires visibility.
Pepagora offers businesses the ability to:
– Identify Suppliers Early
– Compare Various Sourcing Options
– Promote Your Products to Buyers Ahead of The Season
– Help You Build Trust by Having Verified Businesses
– Less Dependence on Last-Minute Contacts
Pepagora is a planning tool, not a panic tool.
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Mistakes Businesses Should Avoid
Every year, businesses fall back on the same mistakes:
- Waiting For Confirmation to Make a Decision
- Choosing Only One Supplier or Buyer
- Ignoring Smaller Inquiries
- Misjudging The Time Required to Package Products
- Believing That Transportation Companies Can Adjust Automatically for You
The purpose of Q2 planning is to consistently eliminate these risks.
How Prepared Businesses Have a Competitive Edge
When it comes to Q4, those that are prepared will look calm, while others will be in a state of panic.
– They Will Deliver on Time
– They Will Continue to Provide High-Quality Products
– They Will Be Responding to Inquiries Quickly
– They Will Have More Repeat Buyers
For this reason, Q2 planning helps increase the number of repeat orders beyond the holiday season.
Why early preparation provides a competitive advantage
Companies with an early planning process for Q4 generally produce a higher return on investment than any others.
Early source procurement creates an opportunity for better pricing.
Early procurement helps producers improve their purchasing leverage during negotiation.
Early production planning allows producers reduce waste and errors during production.
Having a greater number of sellers who can fulfil your requirements provides you with a more reliable source.
Prepared companies enter Q4 with a sense of control instead of last-minute panic.
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Conclusion
Last-minute efforts during the holiday period will not yield good results. It is a much better strategy to prepare well in advance of the holiday season.
The second quarter (Q2) is not a slow quarter; in fact, it is when you will build the base for your company’s success in the fourth quarter (Q4).
Companies that plan ahead, secure their supply chain, produce their products and increase their visibility will experience greater success when customer demand peaks in Q4. For anyone looking to simplify supplier and buyer discovery during this time, the platform Pepagora is an excellent low-risk way to prepare.
