Prepare Now for Year-End Shipping Demand
The holiday rush is coming and businesses need to start preparing their logistics and supply chain systems now. This peak season may seem farther than you think, but the sooner you start preparing, the better. Increased shipping demand can be seen across both manufacturing and distribution systems, so it’s important to make sure your systems are ready to handle the influx of orders. Additionally, with the rise in e-commerce sales, businesses may have to reassess their distribution plans and rely more on shipping from distribution centers instead of delivering products directly to brick and mortar stores.
The peak season for logistics and supply chain systems typically falls in the last quarter of each year, specifically focused on the holiday season (October- New Years).
This is typically a busy time for businesses as retail and shipping demand surges. However, the increased demand for shipping can put a strain on logistics and supply chain systems that are not prepared. By starting to prepare now, businesses can avoid any last minute issues that may arise.
Common Problems During The Holiday Season
What are some current problems the supply chain and logistics industry are facing during the holiday seasons?
Abnormal losses at delivery: Many supply chain and logistics companies are struggling with abnormal losses at delivery. This means that there are more products that are damaged, lost, or stolen during the shipping process. While this is a problem that can occur year-round, it is more likely to happen during the holiday season when there is an influx of orders and supply chains are working at max capacity
Increased labor costs: With the holiday rush comes an increased demand for labor. This can lead to higher labor costs as businesses try to keep up with the demand.
Inability to meet customer expectations: One of the biggest problems supply chain and logistics companies face during the holiday season is their inability to meet customer expectations. This can be due to a number of factors, such as increased demand, weather delays, and supply shortages. When customers are not able to get their orders on time, it can lead to negative reviews and a decrease in sales.
There are many factors at play when it comes to meeting final mile delivery expectations, but working ahead to optimize your distribution systems and inventory supply are great stepping stones to ensure you are setting your business up for success.
How to Prepare for Peak Season
Now that you know what to expect this peak season, there are a few things you can do to prepare:
Invest in a reliable shipping partner: This is one of the most important things you can do to prepare for the increased shipping demand. By having a reliable shipping partner, you can avoid any delays in the shipping process.
Update your distribution plans: As the shift to e-commerce sales continues, businesses will need to update their distribution plans to accommodate for more shipping from distribution centers. This will require you to invest in a reliable shipping partner that can handle the increased demand.
Hire additional staff: With the increase in shipping demand comes an increased need for labor. This will lead to higher labor costs as businesses try to keep up with the demand. To prepare for this, you should consider hiring additional staff to help with the increase in shipping demand.
E-commerce vs In-person Sales: In recent years, there has been a shift from in-person sales to e-commerce sales. This is due to the rise of online shopping and the convenience it offers customers. With more people shopping online, businesses have had to change their distribution plans to accommodate shipping products directly to customers instead of delivering them to brick and mortar stores. This shift has caused an increase in shipping demand, which businesses need to be prepared for.
Distribution Plans: As the shift from in-person sales to e-commerce sales continues, businesses will need to reassess their distribution plans to accommodate more shipping from distribution centers instead of delivering products directly to brick and mortar stores. This change will require businesses to invest in a reliable shipping partner that can handle the increased demand. Additionally, businesses will need to update their distribution plans to ensure that products are being shipped to the correct locations. By doing this, businesses can avoid any delays in the shipping process and ensure that customers receive their orders on time.
Planning for Peak Season Now? Paystar Can Help.
When it’s time to optimize your logistics systems, a trusted 3PL partner is one of the best tools you can have in your toolbox. Our team works with clients to assess lane and load needs, based on past data and insights, and assess the opportunities for improvement.
Once we understand where your trouble lanes exist, we get to work sourcing the ideal client to fill those lanes, longterm. That means, when the holiday season rolls around you’ll know that you have the transportation systems in place to get your materials and products where they need to be.
Get in touch with one of our logistics experts today to learn more about how we can help you streamline your logistics systems and prepare for a stellar peak season performance!
Spear Phishing in the Transportation Sector: What is it and How to Protect Yourself
While the transportation and logistics industry isn’t new to experiencing coordinated “cyber attacks”, cybercriminals are constantly iterating on their methods of infiltration. Just this year, several top IT firms have identified a sharp increase in costly security breaches that all follow a similar pattern. In this pattern, the primary attack vector is a method known…
Why We’re Committed to the SmartWay program
Paystar Logistics is proud to announce our recent designation as a SmartWay High Performer. As a SmartWay Partner, we join the EPA in their quest to build a more efficient, productive, and sustainable freight industry.
A Look at the U.S. Truck Driver Shortage in 2021
A truck driver shortage is nothing new to the U.S. In fact, according to a 2019 analysis report by the ATA (American Trucking Association), we have struggled with truck driver shortages for the past 17 years. This was first recognized in 2005 when we were short, roughly 20,000 drivers to fulfill shipping demands. However, by the end of 2018, that number rose to…