In supply chain headlines
- Tesco loses court case over 'fire and rehire' tactics. The Supreme Court ruled that the supermarket giant cannot terminate employment contracts and offer to rehire on less favourable terms, writes Retail Gazette.
- US government finalises plan to raise tariffs on Chinese-made goods. The increased tariffs target 14 strategic product categories, including electric vehicles, semiconductors, and solar cells, reports Supply Chain Dive.
- 17,000 UK high street shops under threat over the next decade. New research by the British Retail Consortium revealed the retail sector is overtaxed compared to other sectors – resulting in the closure of 6,000 high street shops in the last five years.
4 tips for advanced capacity planning
Capacity planning ensures you have all the right resources available for future demands. It means analysing historical data, forecasting requirements, and allocating the appropriate staff, budget, and time required to meet those demands. Here are four ways to do it right:
1. Prioritise flexibility. It can be worth paying a premium for the ability to quickly scale up – or down. From warehouse space to plant and equipment, when demand is highly variable you’re often best outsourcing for the sake of scalability.
2. Forecast demand holistically. A good forecast is worth its weight in gold. Consider historical data, supplier lead times, and seasonality when building your forecasts. Make sure to adjust your forecasts against actual performance regularly and account for any known quantities, such as upcoming ad campaigns or established seasonal patterns.
3. Segment demand. Not all demand is equal – the more you can understand the different patterns and groupings of demand in your business, the better you can plan. For example, the seasonal demand curve for lime-flavoured ice cream might be the same as the demand for all your ice cream products, but the demand for lime flavouring will have a different profile if it’s used in other products.
4. Consider different scenarios. Some future events warrant completely different capacity plans. For example, a generous government rebate on electric vehicles might trigger a complete step-change in consumer activity that can’t be accounted for in a capacity plan that only models sales in the usual range. Think about possible external and internal factors that could affect demand.
Timeless precision – meet Sergey Taver
This week we're talking to Sergey Taver. He's the Marketing Manager at Precision Watches, a luxury watch retailer based in New York City. We chatted about the challenges of marketing a luxury goods brand in a digital world. Here's what he had to say.
What inspired you to work at Precision Watches?
"My journey into the luxury watch sector began with an admiration for the art of craftsmanship and the allure of timeless design. I've always been captivated by the idea that a meticulously crafted watch transcends its role as a timekeeper; it becomes a symbol of style and precision. My role allows me to combine my love for storytelling with the intricacies of horology – facilitating a connection between our customers and watches that truly reflect their individuality."
How do you position your brand to stand out in the market?
"What sets Precision Watches apart is our commitment to offering more than just watches; we curate experiences. Our dedication to authenticity and quality ensures that every item we present is certified as genuine. We extend our service beyond the sale by providing personalised consultations, after-sales support, and a special loyalty program that rewards our customers with exclusive perks."
What marketing challenges come with building awareness for a luxury watches brand?
"The primary challenge is finding the right balance between tradition and innovation. Our customers appreciate heritage, yet we also need to engage new audiences through contemporary platforms like social media. To navigate this, I've concentrated on creating content that honours the history of watchmaking while leveraging digital channels to share stories that resonate with today's audience. Collaborating with influencers aligning with our brand values has expanded our reach."
Do you have any advice for junior marketers – or business professionals in general?
"Trust your intuition, as it often proves to be accurate; never cease learning, given the rapid pace of change in the industry; and maintain a sense of curiosity. Lastly, prioritise building genuine relationships, as these connections can lead to unexpected opportunities. These invaluable relationships can open doors in ways you might not anticipate."
Which marketing tools do you currently use at Precision Watches to run your business?
"Our technology stack includes Salesforce for managing customer relationships, Shopify Plus for our online store, and Google Analytics for monitoring customer behaviour and refining our marketing strategies. We also utilise Hootsuite to oversee our social media presence and Mailchimp to conduct targeted email campaigns."
Can you recommend any great resources that have helped you evolve in your career?
"For those interested in marketing or luxury retail, I suggest starting with Building a StoryBrand by Donald Miller for its insightful lessons on creating a compelling brand story. The Marketing Over Coffee podcast is another excellent resource for quick, insightful updates on industry trends. And Simon Sinek's newsletters are also filled with practical advice and inspiration for leadership and business strategy."
On the lighter side...
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