Black Friday's impact on prepared industries
Millions of people eagerly await this time of year to take advantage of great deals across various industry sectors. Each year, more businesses participate in this event, which has been winning over Brazilian consumers' wallets for a decade.
Do you know how Black Friday originated?
The term was first used in the United States on September 24, 1869, when two speculators named Jay Gould andmes Fisk attempted to corner the gold market on the famous New York Stock Exchange. As a consequence, the government of the time was forced to intervene to correct the problem, increasing the supply of the raw material to the market. This caused prices to fall and many investors to lose large fortunes. This event became known as Black Friday. In Brazil, it arrived in 2010, when the website Busca Descontos offered various promotions following the Black Friday concept, in addition to registering the domain blackfriday.com.br. This action was followed at the time by other retailers, and thus the Brazilian Black Friday was born.
Each industry sector has its own (off-season) Black Friday
The roles and impacts are very clear during Black Friday: the promotions offered increase the demand for products, while sales skyrocket. However, the impact of this abrupt increase in sales on the entire production chain is often not widely known. To absorb this high variation in demand, it is necessary to have a plan several mes so that there are no shortages of products at the end of the chain. However, we know that this peak in demand variation is not an event exclusive to Black Friday. Each industry has its own "Black Friday," and this can occur for various reasons: it's Christmas for consumer goods, Easter for chocolates, Children's Day for candies and toys, a periodic price update from sectors linked to ANVISA (Brazilian Health Regulatory Agency), among many other patterns that may arise. With increased demand, more production is needed, and the industry must be prepared to absorb this increase and efficiently schedule its production and distribution . Whether these variations in sales are caused by predictable and seasonal factors, or by unpredictable market reactions, good production planning must be agile and reliable enough to avoid stockouts , let alone unnecessary costs. A company needs to be prepared for this increase in production , and good planning yields results in several ways. For example, reducing production lead times through efficient scheduling rules can both increase production efficiency and guarantee better delivery times, reduce inventory, and generate more agility for the production chain to react to these demand variations. In other words, it leads to cost savings and improved service levels.
How can neo help your industry?
Reaching the other side of the rainbow in the quest for the coveted pot of gold is not an easy path, but you can count on our help along the way. In practical terms, when we talk about the impacts of demand variation on the production chain, good Advanced Planning will offer the company support for key production capacity decisions, from short- to medium-term scheduling, which may alter shifts, overtime, and outsourcing, to long-term planning, which will define workforce expansion and machine purchases. This allows us to have a clear view of the necessary capacity and determine what, how much, where, and when to produce, and exactly what materials and resources will be needed Opcenter APS is the world's leading solution for Production Planning and Scheduling . In addition to generating the MPS (Master Production Schedule) taking into account capacity constraints and inventory policies, it allows for long-term capacity planning, supporting tactical and strategic production decisions. NEO Engenharia de Produção is a Siemens Smart Expert Partner and offers solutions with business analysis and implementation of APS software . We have created a new concept that values technological advancement and technical excellence, while mes believing in human sensitivity, creative work, and personalized, committed relationships. Contact us through the form below or via WhatsApp to learn more about our solutions and schedule a personalized analysis tailored to your business needs. NEO is the largest APS consulting firm in Latin America. Perform your production sequencing with experts in technological solutions.