Product Manufacturing: How Brands Optimize Inventory and Maximize Profit During Peak Gifting Season

Covered in
this article:

• The immense revenue growth potential during the holiday shopping season.
• Strategic inventory preparation strategies to unlock maximum profit.
• Optimizing inventory levels to meet demand without excess.
• Securing financing to enable larger upfront purchases for volume discounts.
• Nurturing supplier relationships to ensure availability, quality, and lead times.
• Solutions to capitalize on seasonal sales spikes.
• How Loop reduced COGs and drove record holiday profits on its innovative digital frame.
• How successful SMBs leverage financing and operational support to seize seasonal opportunities for revenue growth.

Strategies for Seasonal Success

As we enter the festive fourth quarter we get to look forward to the peak profit opportunities that Black Friday, Cyber Monday, and other shopping events bring around seasonal gift-giving. It’s no secret that the holiday shopping season is a critical time for companies to boost revenue, attract new customers, and solidify their market position. However, one major challenge companies often grapple with is maximizing profits during this high-demand season due to cash flow constraints. 

Maximizing Potential Through Partnerships

With proper preparation and partnerships, small and medium-sized businesses (SMBs) can avoid leaving money on the table and position themselves to fully seize the immense potential of this profitable period. At Manufactured, it’s not uncommon for us to see SMBs generating $5M to $30M in revenue, who know their business well and are able to accurately forecast their performance during peak periods, but struggle with limited funds to make proactive inventory decisions. We’re passionate about helping SMBs avoid this opportunity cost which is why we’ve developed strategies to help them maximize the potential of the season. By implementing smart strategies and teaming up with true operating partners willing to go all-in on the inventory cycle with them, SMBs can achieve greater success and thrive during seasonal shopping celebrations.  

Crafting an Integrated Supply Strategy Across Operations, Forecasting, and Financing

Realizing success during seasonal surges requires a multifaceted strategy across key business areas:  

• Optimize Inventory to Meet Demand While Minimizing Excess
   As the holiday sales rush often necessitates expanding inventory, small and medium-sized businesses (SMBs) must tread carefully. They need to strike a balance between having enough inventory to satisfy customers without incurring expensive rush shipping costs or ending up with surplus stock that results in profit-draining markdowns. One way to achieve this is through data-driven forecasting based on historical sales data, market research, and trends.
• Enhance Forecasting Through Granular Data Analysis
  Instead of relying on generalized data, examining past sales by product, region, and customer segment can provide valuable insights. Surveying customers can also help gauge purchase intent and interest in new offerings. Predictive modeling tools can then be used to identify patterns and future trends from the data points.
• Secure Inventory Financing to Access Capital
  Securing inventory financing is another crucial step toward accessing the capital needed to make larger upfront purchases. This way, SMBs can obtain volume discounts from suppliers while reducing expediting costs later. When partnering with a provider, it’s essential to find one that understands the specific capital needs during peak season. Pledging purchased inventory as collateral establishes revolving credit facilities that cater to growth requirements.
• Invest in Robust Supplier Relationships
  Investing in robust supplier relationships is key to ensuring product availability, quality, and lead times. By negotiating favorable contract terms and pricing early on, SMBs can effectively stock up in a cost-effective manner.

Brian Gannon, CEO of Loop, makes innovative digital frames that families use to share photos and messages remotely. But seasonal demand spikes strained Loop’s manufacturing capacity and working capital. By partnering with Manufactured, Loop transformed its supply chain and inventory strategy to successfully meet Q4 demand.

Manufactured helped Loop reduce per-unit production costs by over 20% while boosting output, and provided financing to build sufficient holiday inventory. “With Manufactured, we finally had the affordable supply needed for our biggest sales quarter,” Gannon explains. The results were remarkable – Loop achieved record revenue, first-time profitability, and strong momentum entering 2023.

Capitalize on Seasonal Trends with a Partner That Maximizes Shared Success

Manufactured equips small and medium-sized businesses (SMBs) with the means to harness seasonal prospects through collaboration, advanced technology, and flexible financing options. By de-risking manufacturing, supporting operations, and encouraging our partners to exploit leverage points amidst favorable market conditions, we offer unique solutions that ensure they can maintain optimal inventory levels.

Our expertise, resources, and proprietary technology yield valuable data-driven insights for better forecasting and inventory management. Moreover, our wide network of partners contributes additional benefits such as supplier coordination, logistics support, and team development. With a proven track record spanning 45 years, our seasoned experts assist SMBs across various sectors in addressing the challenges of holiday sales influx with confidence.

Time and again, our tailored solutions, financial support, and unmatched services have instilled both disbelief and gratitude among our partners who have been able to meet seasonal demands and fully maximize profit potential. We remain deeply committed to their success by personally investing in their inventory cycles. This strategy sparks a formidable flywheel effect that consistently boosts revenue and accelerates growth year after year.

Embrace the Season with Confidence

As the holiday season approaches once more, join forces with Manufactured to embark on bold growth initiatives. Harnessing our wealth of resources and domain expertise, we enable SMB manufacturers to minimize risks, optimize opportunities, and elevate their growth trajectory. The era of cautious conservatism has come to an end; it’s time for us to step forward confidently into this thriving season and secure our shared successes.