Holiday season brings high traffic to manufacturers around the globe; In the hustle and bustle of November to January, consumers look for the best ways to show they care. In America, 92% of families celebrate Christmas, 5% celebrate Hanukkah and 5% celebrate Kwanza, with 5% of Americans celebrating multiple holidays in the season– meaning their presents have to be made, shipped, and delivered in time.
How do manufacturers keep up with the taller orders? Taking a look at how Holiday changes the manufacturing landscape gives a lot of insight on how to best prepare for the rising production Holiday expectations.
The Way We Shop for the Holidays is Changing
Many people now start their holiday shopping as early as October, a notable change in the spreading out of purchases over several months as opposed to historically spending in the beginning of December. These proactive approaches are driven by attempts to curb inflation.
Evolution in Inventory Management
With the increasing popularity of online shopping and the expectation of rapid delivery, manufacturers must find the right balance between meeting customer demands and avoiding excess inventory.
What Manufacturers Need to Prepare For
This prolonged holiday shopping season means that manufacturers must adapt by preparing earlier than before. It's crucial to create a flexible staffing plan to accommodate the extended shopping period and meet consumer expectations.
Tips for Managing Manufacturing Staffing During the Holidays
1. Plan Ahead: Analyze past holiday seasons to identify peak demand periods and develop a proactive staffing plan.
2. Offer Flexible Schedules: Hiring seasonal employees with different schedules can support your existing full-time team and accommodate varying needs during the holiday season.
3. Prioritize Employee Morale: Recognize the heightened stress during the holidays and consider hiring seasonal employees to share the workload. Additionally, use incentives and acknowledgments to foster a positive work environment.
Ways an ERP System Can Streamline the Holiday Rush
Workforce Management: ERP systems forecast and plan workforce needs based on production schedules, helping manufacturers allocate resources efficiently.
Inventory and Production Planning: Prevent overloading employees with excessive work or, conversely, idle time due to insufficient tasks by optimizing the workforce and maintaining a steady production flow.
Compliance and Regulatory Reporting: Automated reporting features ensure that the necessary documentation and reports are generated, reducing the risk of penalties due to non-compliance.