How Supply Chain Runs The Movie Business!! #ChainsOfThought Episode #1

How Supply Chain Runs The Movie Business!! #ChainsOfThought Episode #1

This article is a detailed summary of the first episode of the Chains Of Thought podcast, where hosts DC Seola and Ramel Watley discuss the intricacies of the supply chain involved in the movie business, particularly focusing on cinema.

Introduction

DC Seola and Ramel Watley kick off the pilot episode of their podcast "Chain Of Thought," where they are set to discuss business trends and headlines from a supply chain perspective. In this first episode, they explore the supply chain of cinemas and the recent success of Disney Pixar's "Inside Out 2."

Cinema's Supply Chain: Setting The Scene

Ramel asks DC how often she goes to the movie theaters these days, with DC mentioning she recently saw "Inside Out 2." They segue into a discussion about the movie's plot and its significant financial success, which grossed over a billion dollars in just three weeks—making it the fastest-grossing animated film since "Barbie."

DC emphasizes the importance of understanding customer behavior (termed the "voice of the customer") to achieve success. She explains that movie theaters' supply chains must be prepared to handle seasonal demand patterns, varying from family movies like "Inside Out 2" to summer blockbusters.

Planning for Demand: Behind the Curtain

DC defines the role of a demand planner in a movie theater, explaining that they are responsible for forecasting inventory needs down to intricate details like the number of popcorn tubs, soda cups, and even the appropriate staffing levels.

Drawing from the example of "Inside Out 2," she further elaborates on how theaters can prepare for such releases by segmenting their theaters based on features like IMAX or 3D. The goal is to ensure they are adequately stocked with snacks, drinks, and maintenance items to offer a pleasant customer experience.

However, DC highlights a crucial challenge—no demand plan is ever 100% accurate. The dynamic nature of customer preferences, unexpected technical issues, or even a sudden change in external factors like weather can influence actual outcomes.

Beyond the Screen: Broader Implications and Opportunities

The hosts divert briefly to discuss streaming services like Disney Plus and how they impact the traditional cinema model. DC finds it puzzling that Disney didn't mention data centers in their annual report despite their significant relevance in a tech-oriented age.

The podcast then ventures into various ways smaller logistic service providers can find opportunities within the movie theater supply chain. One intriguing opportunity includes local distribution to smaller, regional cinema chains that need consistent, reliable supply services.

Wrapping Up: Final Thoughts

The episode closes with the hosts reinforcing the complexities inherent in the supply chain of movie theaters. They stress the importance of ensuring both the operational readiness and quality customer experience to keep cinemas profitable and patrons happy.

Keyword

Supply Chain
Cinema
Demand Planning
"Inside Out 2"
Disney Pixar
Customer Behavior
Inventory Management
Streaming Services
Local Distribution

FAQ

Q1: What is the primary role of a demand planner in the cinema industry?
A: The primary role of a demand planner in the cinema industry involves forecasting inventory needs, determining the number of items like popcorn tubs, soda cups, and ensuring appropriate staffing levels to handle the demand for moviegoers.

Q2: What are the key indicators for predicting demand in the movie business?
A: Key indicators include historical data on past movie performances, target demographics, market research including focus groups, and real-time customer feedback.

Q3: How has the rise of streaming services like Disney Plus impacted traditional cinemas?
A: The rise of streaming services has provided an alternative distribution platform for movies, potentially reducing the number of theatergoers. However, it also serves to keep the brand relevant and available to a broader audience.

Q4: What challenges do cinemas face in ensuring an effective supply chain?
A: Cinemas face challenges like inaccurate demand forecasting, unexpected technical issues, variable customer preferences, and maintaining a high quality of customer service.

Q5: Are there opportunities for small logistic service providers within the movie theater supply chain?
A: Yes, there are significant opportunities for local distribution to smaller, regional cinema chains that require consistent and reliable supply services.