By Zoryana Zagorodnya
Easter, with chocolate eggs and bunnies everywhere, is the second biggest candy holiday of the year. While it might be a joyful time to celebrate, the complexities happening behind the scenes to deliver millions of pounds of sweets right in time for Easter egg hunting could drive the Easter Bunny crazy!
Let’s dive into the world of the Easter Supply chain and find out how can we ensure a sweet and sustainable holiday season for all.
Do not let disruptions become an easter egg in your supply chain
Americans are spending a lot of money to celebrate the holiday, with spending reaching a staggering $24 billion last year. From sweet treats to thoughtful gifts and delicious meals, the demand for Easter goodies keeps only growing.
Chocolate has always been a key ingredient to a happy Easter. In Germany alone, a total of 230 million Easter bunnies were produced in 2023. That’s a lot of cocoa!
Unfortunately, the cost of cocoa has roughly doubled since the start of last year due to poor harvests in West Africa caused by The El Niño weather phenomenon. Let’s not forget the sugar shortage in 2023 caused by the same weather conditions.
Working on seasonal demand products requires effective demand planning and forecasting. As Richard Howells from SAP said: ‘‘We plan in the perfect world but operate in the real world’’. Any sudden change can disrupt the chocolate supply chain’s normal flow, leading to shortages or surpluses. A good example is the recent Suez Canal Crisis which temporarily caused prices for sea transport to skyrocket and had an impact on global trade.
By utilizing predictive analytics to analyze the weather forecasts, traffic patterns, and GPS data of shipments, you can plan for contingencies such as delayed raw materials, stockouts, and supply chain disruptions.
Leveraging emerging technologies like Artificial Intelligence, machine learning, IoT tracking, and cloud services can help to predict and develop alternative scenarios to minimize the effects of disruptions. On-demand manufacturing, predictive demand forecasting, and inventory optimization strategies also help mitigate unexpected disruption.
Why should we bring sustainability to our business?
The impact on natural resources due to El Nino is just one example of why sustainability has evolved beyond being just a buzzword. Not only customers, but investors and the emerging workforce are seeking out companies that prioritize sustainability.
According to Google research, 66% of consumers actively look for eco-friendly brands, and 55% are willing to pay a higher price for sustainable products. Consumers are interested in understanding how companies handle their resources, particularly if they source materials responsibly.
The buds of sustainability are now well and truly appearing, and zero inequality, zero emissions and zero waste must be at the new mindset of doing business. We are past making commitments and now must start delivering on them.
Sustainability cannot be an afterthought and here is how you can embed it in your business processes:
- Simulate and respond with alternate scenarios - Leveraging emerging technologies like Artificial Intelligence, machine learning, IoT tracking, and cloud services can help to predict and develop alternative scenarios to minimize the effects of disruptions. On-demand manufacturing, predictive demand forecasting, and inventory optimization strategies also help mitigate unexpected disruption.
- Design products with end of life in mind – If products are designed that minimize wastage, leverage recycled materials, are recyclable at their end of life and are packaged in eco-friendly material then you will create a sustainable product that will consist of less plastic, be environmentally friendly, that will entice today’s eco-conscious buyers.
- Every transaction has a financial and environmental cost - With a practice of "Green Ledger" companies can keep track of their carbon emissions, energy consumption, and waste production, they can better understand their environmental footprint and make informed decisions by choosing renewable energy sources and the implementation of eco-friendly policies.
On this Easter, ensure that your product meets customer expectations and is eco-friendly. It is a double win – for your business and a more environmentally conscious future.
Happy Easter!
To learn more about enabling a risk-resilient and sustainable supply chain, please join us at the upcoming SAP Sapphire & ASUG Annual Conference , from June 3-5 in Orlando.
