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Essential tips to steer through the peak shipping season

Peak season stress? Don't sweat it with this guide that helps businesses stay cool, calm, and collected amidst the shipping chaos.
Peak season stress? Don't sweat it with this guide that helps businesses stay cool, calm, and collected amidst the shipping chaos.
29 October 2024 •

The year-end period is a season of joy and celebration, as shoppers go into a buying spree for the holidays. This typically happens during major sales events like Black Friday, Cyber Monday, and the holiday period, where businesses experience sudden increases in demand.

However, the timing and intensity vary by different sectors. For instance, retailers may see peaks closer to the above holiday events. Manufacturing or construction companies might have their own peak periods depending on project cycles or economic trends.

Whatever the business, though, the peak season is a time to meet high customer demand and drive sales. This translates into a season of panic as retailers scramble to meet increasing demand. Failure to prepare can result in insufficient inventory, leading to missed revenue opportunities. Conversely, a smooth and efficient operation during peak season can translate to increased sales and a significant boost in revenue.

Companies, together with their logistics partners, can stay prepared for the peak season shipping rush with these essential tips.

1. Early & almost-accurate forecasting

Staying ahead of the game through advanced planning is the foundation of managing a successful peak season. For instance, businesses can analyze past sales data, market trends, and customer orders to predict demand and ensure that sufficient inventory is available to meet the surge in client orders. Lead times for manufacturing and shipping can be longer than usual during peak season, so anticipating demand and stocking up well in advance is crucial.

Historical data from past peak seasons are used to identify certain patterns, such as a spike in a product category for a specific market. Anomalies can also be used to determine if it recurs often enough to be a learning point. This data is not limited to businesses, as logistics firms can utilize their own data to collaborate with their customers to gain insights on anticipated demand and enhance forecasted shipping needs.

To complement the above efforts, fashion brands such as Zara practice nearshoring, where production takes place in locations such as Spain, Portugal, and Morocco, which are near its target U.S. market. This approach allows the apparel retailer to respond quickly to fashion trends and maintain tight control over quality. Transportation costs and turnaround times are also reduced, making its supply chain more agile, especially during peak seasons when demand fluctuates rapidly.

2. Streamline inventory management

Beyond forecasting inventory and shipping needs, an efficient inventory management also plays a crucial role in maximizing storage capacity and minimizing handling time during peak season.

This is where warehouse management and optimization play a crucial role. Factors such as product popularity, size, and weight must be considered in the warehouse layout. For example, frequently accessed items should be stored in easily accessible locations, while bulkier items may be placed in higher-level racks.

Investing in the right technology can significantly improve inventory efficiency and picking accuracy.
Investing in the right technology can significantly improve inventory efficiency and picking accuracy.

Warehouse management systems (WMS) and transport management systems (TMS) need to be constantly updated to maintain inventory levels, especially as volumes surge during the peak season. The use of real-time analytics for inventory tracking will help companies and logistics firms manage the increased volumes.

Automated guided vehicles (AGVs), barcode scanning, and Radio Frequency Identification (RFID) can automate tasks such as inventory tracking, order picking, and transportation. Ocado, a UK-based online grocery retailer, is known for its highly automated fulfillment centers, which use robots to pick and pack groceries at a rapid speed. These technologies can reduce errors, speed up processes, and provide real-time visibility into inventory levels.

3. Build a delivery advantage

The efficiency of a company’s transportation strategy can make or break its peak season performance. According to the DHL Online Shoppers Trend 2024 report, 95 percent of global shoppers across the world say delivery options influence where they buy from online.

Ensuring timely delivery to retail stores and distributors is still important to help businesses fulfill their own customer orders without disruptions.

To move the stock from the warehouse to customers, consider utilizing freight services as a reliable and cost-effective transportation option. A key consideration when choosing a freight forwarding service is to find one that has strong partnerships with multiple carriers to secure additional capacity when the peak season happens.

Advanced planning for deliveries is crucial, and this is especially so for businesses planning to ship via ocean freight services. This should start from a month or two before the peak season to secure capacity. Alternatively, consider air freight services if there is a need to expedite delivery for time-sensitive or high-value products.

The final leg of the delivery journey, last-mile logistics, also plays a vital role in customer satisfaction.
The final leg of the delivery journey, last-mile logistics, also plays a vital role in customer satisfaction.

To enhance customer satisfaction, businesses need to partner with logistics firms that have a strong and wide global network.

More importantly, choose a logistics firm that can deliver on its promise of an efficient last-mile delivery, which saves both time and cost for businesses. Partner with logistics companies that invest heavily in route optimization to plan the most efficient routes, alongside proper load management strategies to maximize vehicle space.

Other than fast delivery, businesses should offer various delivery options, including standard shipping, expedited shipping, and same-day delivery in select areas. This flexibility provides their customers with the choice to select the method that best suits their needs and timeline.

4. Track and communicate

Peak season equates to huge volumes, and it can get quite daunting to track products while they are on enroute to a customer. Working with a logistics firm that tracks the shipment from end-to-end is a key consideration. For one, it allows both parties to know exactly where the shipment is in real-time, giving a clear visibility on when the shipment arrives.

The end-to-end tracking is important for both businesses and their customers.
The end-to-end tracking is important for both businesses and their customers.

It is crucial to communicate the status of the shipment. By relaying accurate and real-time tracking information to their customers, it provides clarity on when they can receive their product. This is especially important during peak season, when longer delivery times and potential delays can have an impact on the brand.

To better communicate with customers during peak season, businesses should look at integrating their e-commerce websites with their logistics provider. By doing so, customers will be able to track their purchases, from the source to the destination. Integrating e-commerce sites with a strong customer support to provide regular shipment updates, alongside quick service recovery for delayed deliveries, are the key to building trust and loyalty with customers.

Sail smoothly through this peak shipping season

The surge in consumer spending during the peak season translates to increased demand for products and services, leading to higher sales and revenue. This period can also be an excellent time to introduce new products or services to the market as businesses are more likely to be receptive to new offerings.

The key to peak season success lies in preparation, flexibility, and a customer-centric approach. By implementing effective strategies such as early and accurate forecasting, streamlined inventory management, and efficient transportation, companies can mitigate the risks associated with increased demand during this period.


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