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Black Friday Boosts Logistics Sector and Demands Planning

Written by Flavia Soares
Published on 20/11/2023 at 14:21
Black Friday impulsiona setor de logística e exige planejamento
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Increase in Sales and Cargo Transport Requires Organization Across the Supply Chain to Streamline Deliveries and Avoid Losses

Black Friday, which takes place on the last Friday of November, is approaching and the market is already preparing for one of the highest sales periods of the year. Despite the official date, some retailers extend discounts over several days, weeks, or throughout the month of November. 

The movement in the sector stimulates, in addition to the economy, the creation of jobs in various areas, from production to logistics and sales. To meet the demand, which is expected to increase by about 32.2% this year, according to a survey conducted by Mfield, the logistics sector needs to prepare in advance. Overhaul, the only global independent logistics risk management and visibility company with strong operations in Brazil, expects a 20% increase in cargo transport compared to the same period last year.

“The impact on shipments for Black Friday begins weeks before the big sales day and extends until January with deliveries, returns of goods, and other reverse logistics activities. Before products reach the stores and are available to consumers, companies need to stock physical stores and strategic storage points for online sales, in addition to operations transferring from ports and airports to distribution centers and so on,” reveals Reginaldo Catarino, Intelligence Manager at Overhaul.

Security

Electronics, such as laptops, TVs, video game consoles, and smartphones are the most sought-after products during the promotion. Following that are clothing, footwear, and accessories.

With a higher number of shipments, product exposure also increases, and consequently the risk of theft, burglary, and hijacking, especially in metropolitan areas like São Paulo and Rio de Janeiro. “As deliveries and the volume of packages per vehicle intensify, there is an increased exposure of the truck during deliveries in terms of time, which ends up facilitating actions by specialized gangs or opportunists,” explains Reginaldo.

To transport goods securely, it is necessary to reinforce monitoring, as according to data from “Brazil: Quarterly Cargo Theft Report”, Brazil recorded 17,230 theft occurrences between January and July of this year, a 5.5% increase compared to the same period in 2022. Most, 44%, are mixed cargo, that is, different types of cargo being transported together, such as electronics and clothing, which is why November’s discounts require extra attention.

To succeed in sales, avoid losses, and keep customers satisfied, Overhaul offers some tips: 

 

  • Enhance Online Customer Experience

The pandemic intensified online sales, and this habit is here to stay. Therefore, online shopping should receive special attention. “The first impression counts a lot. Make sure your website is intuitive and easy to navigate. A positive user experience can reduce cart abandonment rates and increase conversions,” emphasizes Reginaldo. 

 

  • Stock and Promotions Planning

Anticipate demand and plan your inventory according to previous sales trends. Set promotions and discounts in advance to avoid any delays or confusion during Black Friday. “Clear and attractive promotions, along with well-managed stock, are essential to meet consumer expectations. Today, the customer wants efficiency throughout the process, and this includes product delivery,” points out the Intelligence Manager at Overhaul.

 

  • Technology in Logistics

Adopt technological tools such as order management systems and real-time tracking to improve logistical efficiency. The logistics sector is in a race against time to adapt to the challenges posed by Black Friday. Companies that prepare in advance and adopt a detailed logistics strategy have a higher chance of success. “With the adoption of advanced technologies and meticulous planning, it is possible to turn logistical challenges into opportunities to strengthen customer relationships and drive sales,” he states.

 

  • Pay Attention to Security

The Black Friday period, with the intensification of promotions and discounts on online platforms and social media, attracts many consumers looking for low prices, but unfortunately scams and frauds also increase significantly. Therefore, it is crucial to enhance security practices to prevent these malicious activities, as well as to bolster cybersecurity to protect against attacks such as ransomware or phishing. Additionally, logistical operations should also have their security practices strengthened to minimize theft, avoid unnecessary exposure to thefts during deliveries, and protect against intrusions into warehouses that store goods.

It is also worth remembering the importance of reverse logistics, as some segments like clothing, footwear, and electronics tend to receive the most return requests.

 

About Overhaul

Founded in 2016, Overhaul operates in 145 countries and is the only global independent logistics risk management and visibility company with strong operations in Brazil. As a leader in supply chain risk management in transit, Overhaul transforms real-time visibility into risk management, compliance, and insurance solutions for its partners. Overhaul is a trusted supplier for Fortune 100 companies that move goods in the pharmaceutical and healthcare, technology, logistics, and food and beverage sectors. Among its clients are Microsoft, Bristol Myers Squibb, and many others. For more information, visit over-haul.com and follow Overhaul on social media LinkedInTwitter and Facebook.

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Flavia Soares

Flávia Soares, jornalista, 36 anos

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