GPBM Nordic has three warehouses in Europe dedicated to the storage of batteries and lighting equipment. Despite the difficult global market situation, the shelves in the central warehouse in Mölndal, Sweden, have not been empty.
The current critical situation is causing great concern for retailers and trading divisions, especially now that Black Friday and Christmas are approaching. The Covid-19 crisis first, container and raw material shortages later, are factors that are currently generating major problems in production and supply chains worldwide. Several sectors are therefore experiencing a state of anxiety linked to two crucial periods: Black Friday and Christmas shopping.
Branko Bjelanovic, warehouse manager at GPBM Nordic, explains: "We are experiencing the same problems as everyone else in getting our goods out of the ports and, to make matters worse, there is a global shortage of components needed to make certain parts. Although we are constantly receiving supplies, they are barely enough for us at the moment. However, there are some of our product series that have remained stable and will not be affected by market fluctuations. This has been possible by calibrating the safety stock from the beginning through larger purchases."
Once the situation had been established, the need emerged to have as many goods as possible available and then to distribute them to the different factories in order to balance requirements.
The previous situation has favoured the current one
Fortunately, GPBM did not suffer a drop in sales of its products during the pandemic; on the contrary, it experienced an increase in volumes. This enabled it to secure larger quantities of stock in preparation for Black Friday and later Christmas shopping. "We know that delayed deliveries and longer production times will be factors in the future," comments Bjelanovic. " For these reasons, we have undertaken careful planning of the entire supply chain well in advance. GPBM's strategy is based on analysis and planning in order to mitigate delays and raw material shortages. After that, the key is targeted stockpiling to cope with the hot shopping season and finally focus on sales.
The secret weapon is observation
Malin Jackne and Thomas Magnusson, category managers for the GP brand, work daily across the entire supply chain, as well as with sales and customer management, to optimise and secure the flow of products from inbound to final dispatch. Malin Jackne describes the key aspects and approach to be taken in order to overcome the current situation with momentum: "My advice is to start reviewing your requirements for autumn and also winter as soonas possible. Even if you are well supplied, the details must never be overlooked and, above all, the planning aspect between supplier and end customer must be given greater emphasis.
Thomas Magnusson also agrees: "Planning between supplier and customer has become very important. As Jackne said, numbers, reports and forecasts are important, but in today's fluid and changing market you also need to be observant, because if you miss small details or small signs of change, it is very easy to miss opportunities or run out of products. In simple terms, if you act early enough, you can influence the market according to the products that will be sold.
You might also be interested in:
Logistics: how to avoid being found unprepared