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SUPPLY CHAIN

Global disruptions may hit supply chain ahead of Black Friday

By our News Team | 2021

Warning that businesses and retailers could struggle to meet Black Friday consumer demand and should plan accordingly.

As Africa heads towards Black Friday, global supply-chain disruptions caused by the pandemic could mean that there’s insufficient stock to meet consumer demand come 26 November. 

This is according to Sam Clarke, CEO at Skynamo, an Africa-based provider of customer relationship management (CRM) technology, who says this year’s Black Friday could be one like no other, as businesses and retailers are faced with the challenge of meeting consumer demand while facing shortages.

“Around 90% of traded goods are transported via sea. But, with bottlenecks at ports due to the pandemic, the result could be that knockout deals this year are fewer and far between,” Clarke warns. “Similarly, retailers’ profit margins are already being squeezed, so there are likely to be fewer deals and smaller discounts on offer.”

Supply chain

Image by Gerd Altmann from Pixabay

Cotton shortage may impact slothing sales

According to Clarke, supply-chain disruptions mean it may be harder for businesses to source the items they need in preparation for Black Friday. For example, cotton is in short supply worldwide, which affects the availability and price of certain clothing.

One way for retailers to mitigate this is to ensure that they are organised beforehand. So businesses should determine early what products they would like to discount and then speak to their suppliers as soon as possible. 

If it’s unlikely that stock will arrive in time for Black Friday, retailers need to ensure that they have a back-up plan, advises Clarke. 

Customer expectations must be managed

“Perhaps have other merchandise on hand that you can sell instead. Similarly, if items that customers order online are going to take a while to be delivered, make sure that this is communicated immediately to manage their expectations or give them time to find an alternative.” 

One way for retailers to circumvent supply issues is to offer a longer lead time for delivery, he says. 

“The other thing retailers can do is to give customers the option to pick up their merchandise from a drop-off point rather than deliver door-to-door.”

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.