The Impact of Black Friday for Prepared Industries
Millions of people eagerly await this time of year to take advantage of good promotions in various sectors of industry. Every year, more businesses take part in the event that, for the last decade, has been winning over the pockets of Brazilians.
Do you know how Black Friday came about?
The expression was first used in the United States on September 24, 1869, when two speculators named Jay Gould and James Fisk tried to take over the gold market on the famous New York Stock Exchange. As a result, 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 plummet and many investors to lose huge fortunes. This event became known as Black Friday. In Brazil, it arrived in 2010, when the Busca Descontos website ran several promotions following the Black Friday concept, as well as registering the blackfriday.com.br domain. This action was followed at the time by other shopkeepers, and thus gave rise to the Brazilian Black Friday.
Each industry sector has its own Black Friday (off-season)
The roles and impacts are very clear during Black Friday: the promotions on offer increase 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. In order to absorb this high variation in demand, it is necessary to plan several months in advance so that there is no shortage of products at the end of the chain.However, we know that this spike in demand is not an event exclusive to Black Friday. Each industry has its own "Black Friday" and this can occur for a number of reasons: it's Christmas for consumer goods, Easter for chocolates, Children's Day for sweets and toys, a periodic price update in sectors linked to ANVISA, among many other patterns that can arise. With the increase in demand, more needs to be produced and the industry needs to be prepared to absorb this increase and schedule its production and distribution efficiently.Whether these variations in sales are caused by predictable and seasonal issues, or by unpredictable market reactions, good Production Planning must be agile and reliable enough so that there are no stock-outs, let alone unnecessary costs.The company needs to be prepared for this increase in production and good planning work pays off in many ways. For example, reducing production lead times through efficient scheduling rules can both increase production efficiency and guarantee better delivery times, reduce inventories and generate more agility in the production chain to react to these variations in demand. In other words, it's a cost and service level gain.
How can NEO help your industry?
Getting to the other side of the rainbow in the search for your dream pot of gold is not an easy path, but you can count on us to help you along the way.In practical terms, when we talk about the impacts of fluctuating demand on the production chain, good Advanced Planning will provide the company with support for the main production capacity decisions, from short- to medium-term scheduling, which can alter shifts, overtime and outsourcing, to long-term planning, which will define the expansion of the workforce and the purchase of machinery. 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 stock policies, it enables long-term capacity planning, supporting tactical and strategic production decisions.NEO Production Engineering 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 cutting-edge technology and technical excellence, while at the same time believing in human sensitivity, creative work and personalized, committed relationships. Contact us using the form below or via WhatsApp to find out more about our solutions and arrange a personalized analysis for your business needs. NEO is the largest APS consultancy in Latin America. Sequence your production with a specialist in technological solutions.