2024-04-04 15:10:11
One of the most important times for national retail, Easter is expected to generate around R$3.44 billion in 2024, according to an estimate from National Confederation of Commerce in Goods, Services and Tourism (CNC).
What many don’t imagine is that, behind the magic and charm of this holiday, there is a complex chain of events that allows the traditional sweet to arrive in their homes.
From conception to delivery, each step requires precision, planning and an intricate balance of production, scheduling and transportation, involving much more than simply molding chocolate into egg shapes and wrapping them in shiny paper.
“The complex journey of the Easter egg highlights the importance of an efficient logistics chain and the use of cutting-edge technologies. In the digital era, it is essential to adopt intelligent solutions that optimize each stage of this complex process, from production planning to the final consumer”, explains Fabio Sas, partner and commercial director at Linear Mathematical Softwaresa Brazilian company that develops software aimed at optimizing supply chain processes.
Planning and demand
Careful production planning is essential when it comes to seasonal products like Easter eggs. Starting months before the holiday, chocolate companies and retailers need to anticipate and analyze expected demand, taking into account a range of factors such as market trends, consumer behavior and sales history.
This accurate forecast is crucial to determining the quantity of eggs to be produced, avoiding both shortages and excess stocks. Due to the limited production window, strategies are needed to maximize efficiency and ensure products are ready to be distributed at the right time, meeting seasonal demand and providing a satisfying experience for consumers.
“Here, the big problem is precisely the seasonality and specificity of Easter. Easter eggs that were not sold end up becoming losses for companies, as, in order to liquidate their stocks, their sales prices end up being lowered and their margins reduced”, explains Fabio.
Transport and storage
When it comes to transportation, companies face more challenges, whether on the way to the shelves or to distribution centers. Due to their fragility, products require robust and resistant individual packaging to provide protection once morest mechanical damage. Humidity and temperature must also be precisely controlled.
“Furthermore, Easter eggs are hollow, and take up much more space than conventional chocolate bars, for example, increasing shipping costs. Having a damaged chocolate egg means incurring significant losses for the company”, explains Sas.
As companies do not have the production capacity to meet all demand in a short period of time, production must start some time in advance of the commemorative date. Therefore, storage becomes another important factor to take into account.
“Often, in a hot country like Brazil, products must be stored in air-conditioned warehouses, months before they reach the shelves. Furthermore, brands must plan where the eggs will be stored, taking into account a series of information, such as service capacity, demand, taxes and transportation”, explains the director of Linear Softwares Matemáticos.
Optimization tools to overcome challenges
According to the study Own Your Transformationfrom IMB IBV (Institute for Business Value), 60% of Brazilian Supply Chain executives are using predictive approaches in supply chain operations as a way to manage risks, in addition to 49% of respondents confirming that they are accelerating investments.
In the specific case of chocolate eggs, efficient production, storage and transportation represent savings of millions of reais for brands. After all, a damaged chocolate egg almost completely loses its market value. An egg in perfect condition, but not sold, represents a loss for the company.
In this sense, advanced solutions can help brands overcome complex challenges in the production chain. With certain daily planning tools for primary distribution of final products, it is possible, for example, to carry out all supply planning and load composition, determined by market demand and the company’s factory production.
With this, it is possible to have greater control and assertiveness in distribution planning, reduce losses due to sales failures, reduce shipping and tax costs, in addition to increasing the service rate.
“With the challenges imposed in managing production and storage capacity, companies are constantly looking for innovative solutions to optimize their processes and ensure that consumers have access to their products at the right time and with the desired quality”, concludes Fabio.
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