TOP 5 HOLIDAY INVENTORY HACKS FOR CANADIAN SMEs
- VS Business Consulting
- Dec 17, 2024
- 3 min read
To Save 30% Revenue
Struggling with inventory management during the holidays?
These simple, cost-effective tips can help your business thrive during the busiest season of the year.
For Canadian small and medium enterprises (SMEs), the holidays can be a double-edged sword. While demand surges, inventory mismanagement can lead to stockouts, overstocking and excessive carrying costs.
Inventory challenges often result in a 30% revenue loss for many SMEs during the holiday season.
The good news?
With a few strategic tweaks, you can turn inventory management into your holiday superpower!
Here are 5 holiday inventory hacks to maximize profitability and ensure your shelves are
always stocked with what your customers want.
Automate Inventory Tracking
Why Does This Matter?
Poor tracking leads to costly stockouts and overstocking. McKinsey reports that using AI tools like RFID or barcode scanners can improve inventory accuracy by 50%, ensuring better stock alignment.
How-to Pointers:
Implement tools like Shopify POS, Square Inventory, or TradeGecko for real-time tracking.
Set up automated low-stock alerts for your top-selling holiday items.
PRO TIP: test automation on your top high-demand products to see the difference it makes.
HOLIDAY ANGLE: Keep tabs on seasonal items like gift sets or limited-edition products to avoid losing sales during peak times.
Forecast Demand with Analytics
Why DoesThis Matter?
Data-driven forecasting reduces overstocking and stockouts by 30% (Deloitte). Seasonal demand is unpredictable, but tools like analytics can help you get ahead of the curve.
How-to Pointers:
Use free tools like Google Trends to track interest in your product categories.
Analyze last year’s sales data with Excel Forecast Functions or Power BI.
Factor in external variables like weather and regional holiday shopping trends.
PRO TIP: Pay attention to influencer-driven trends—what’s hot on TikTok often translates into higher demand!
HOLIDAY ANGLE: Adjust forecasts to account for for events like snowstorms, which impact foot traffic and delivery logistics.
Segment Your Inventory
Why DoesThis Matter?
Deloitte’s ABC Inventory Method helps you focus on what matters most, optimizing costs and ensuring high-priority items are always in stock.
ABC Inventory Method:
A-Items: High-demand, high-margin products. Stock these heavily.
B-Items: Moderate-demand products. Stock cautiously.
C-Items: Low-demand or niche products. Stock minimally to free up cash flow.
PRO TIP: Label seasonal items as temporary 'A-Items' to prioritize their availability.
HOLIDAY ANGLE: Use segmentation to identify holiday-specific categories, like decorations or gift bundles. Stock them accordingly.
Leverage Omnichannel Fulfillment
Why Does This Matter?
Oliver Wyman highlights that 82% of holiday shoppers use multiple channels, meaning deployment of omnichannel strategies are critical. Streamlining fulfillment across online and offline channels reduces redundancy and improves customer satisfaction.
How-to Pointers:
Use tools like Cin7 or Square POS to integrate inventory across your website, app and in-store.
Offer flexible options like curbside pickup or “Buy Online, Pick Up In-Store” (BOPIS).
PRO TIP: Incentivize BOPIS with exclusive in-store perks or discounts to save on shipping costs and drive foot traffic.
HOLIDAY ANGLE: Highlight same-day pickup options for last-minute shoppers.
Streamline Post-Holiday Returns
Why Does This Matter?
Returns spike after the holidays, with 20% of purchases being returned (Deloitte). Efficient handling of returns prevents inventory pileups and protects cash flow.
How-to Pointers:
Automate returns with tools like Loop Returns to reintegrate items into stock quickly.
Offer exchanges instead of refunds to retain revenue.
Analyze return data to identify trends and improve future inventory planning.
PRO TIP: Use returns as an opportunity to gather feedback and improve product quality.
HOLIDAY ANGLE: Position hassle-free returns as part of your customer service promise to build loyalty.
WHY Act Now?
The holiday season can be a make-or-break time for Canadian SMEs.
By utilizing these 5 tips, you can avoid revenue losses, manage inventory efficiently and delight your customers during the busiest time of the year!
That's what we call MAXIMIZING holiday JOY!
Need Help With Your Holiday Inventory Strategy?
At VSBC, we specialize in engineering supply chain solutions tailored to Canadian SMEs. Contact us today to design a strategy that ensures your holiday season is as profitable as it is festive.
🎄 Comment your biggest inventory challenge below & we’ll share a custom hack just for you! 🎄
Author Bio
Kate Schneider, VP of Supply Chain Solutions at VSBC, specializes in communications and logistics optimization for lifestyle retail brands. She is passionate about driving peak-season efficiency and operational excellence.
Come say hello! www.vsbusinessconsulting.com
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