Fireworks are set to pop in the United States on July 4th, but independence is something celebrated around the world. Surrounding an independence day, countries have a strong demand for goods that reflect the national flag and colors. Take a walk through the streets of Brazil on Sete de Setembro and you’ll see similar sentiments to an American parade around July 4th, except the materials are completely different. For instance, thirsty parade spectators in Rio drink coconut water, while generally Americans prefer bottled water.

How does the global supply chain adjust to intense demands like a large nation’s celebration? After all, half of the world’s population lives within just six nations, and all of these countries celebrate an independence day or a founding day between July and October [1].

The infographic below depicts just some of the spike in demand brought on by country-specific celebrations.

Demand sensing can plague supply chain managers. How can professionals adequately supply stores to avoid too much or too little inventory on these holidays?

3 Ways to Soup Up Your Supply Chain

1. Agility

If you’re a flag supplier, your production needs to have smaller runs, changing from the red, white and blue of France for July 14th to the green, orange, white and blue of India for August 15th. Listen as retail leader Dr. Victor Fung explains more from his interview at World Retail Congress 2017:

2. Better demand sensing

Consumers’ desire for certain products could reduce if it rains. Stores will need more product the day of a parade if they’re near the route. Tools like IBM Metro Pulse Powered by Watson take in weather and event data to help professionals plan for the surges that occur down to the neighborhood.

3. Export opportunities

The final concept—exportation— may surprise you. For instance, while the majority of flags and fireworks in the United States are imported from China, sizable amounts are also exported. In fact, in 2015 the Dominican Republic was the largest recipient of American flags [2]. Examine your opportunities for resale given the demand abroad for a nation’s product.

This post is the first in the IBM Ripple Effect series. Stay tuned for more insights on how global events impact supply chains.

Learn more about IBM’s effort to improve the retail & CP supply chain at IBM.com/retail.

[1] http://www.pewresearch.org/fact-tank/2014/07/11/half-the-worlds-population-live-in-just-6-countries/

[2] http://www.envistacorp.com/fourth-of-july-infographic.html

Infographic sources:

https://www.census.gov/newsroom/facts-for-features/2016/cb16-ff13.html

http://www.cggc.duke.edu/pdfs/ITC_Report_Caribbean_Coconut_Global_Value_Chain_2016.pdf

http://www.guinnessworldrecords.com/world-records/largest-chocolate-firework/

http://www.mahapolice.gov.in/mahapolice/jsp/temp/html/flag_code_of_india.pdf

http://www.telegraph.co.uk/news/world/china-watch/business/china-national-day-spending-2016/