As the calendar turns to the peak season, a tornado of demanding conditions hovers over businesses everywhere. Peak season refers to a surge in demand which leads to increased activity across the supply chain. As the demands of the season increase, businesses need to handle the workload and meet customer expectations.
For instance, in the 2022 festive season, e-commerce sales hit an all-time high of $5.7 billion. To handle these challenges, teaming up with a flexible logistics partner becomes decisive. This article provides essential tips for managing peak season demands with a reliable logistics partner, ensuring efficient operations and customer satisfaction.
What are the Peak Season Challenges for Logistics and Supply Chain?
Some of the common challenges faced by the logistics sector during the peak season are:
Increased Overall Consumer Demand
The market size of the logistics sector was $259.5 Billion in 2022. It has since exhibited a growth rate of approximately 9%. This positive growth is believed to be a result of increased customer engagement as well as the expectation of quick and safe deliveries.
Even though this opens up pathways for increased revenues and sales, keeping up with the peak season demands is challenging. For instance, many customers demand free and rapid delivery or change delivery timelines at the last moment. Factors like these often hinder shipment.
Lack of Time to Review and Rectify Incorrect Orders
Time is another big concern for shippers these days. So, during peak season, they need all the time and resources they can get. It is imperative that the customer receives accurate orders every time. Plus, they will be under even more pressure to manage peak season logistics as new demands come in.
Therefore, a flexible logistics partner which can offer on-demand logistics can be the solution to meet these last-minute requirements.
Ad-Hoc Requirements
Another important challenge in logistics and supply chain management is handling ad hoc requirements. These may include unexpected or unforeseen demands that arise outside of regular operations, including rush orders, urgent customer requests, changes in delivery schedules, or unforeseen disruptions in the supply chain.
Ad hoc requirements can disrupt the established workflow and pose challenges in terms of resource allocation, capacity planning, and coordination.
Outdated Warehouse Management Systems (WMS)
The usage of outmoded warehouse management systems is one of the many problems that logistics and supply chain operations face. Furthermore, a lack of connection between warehouse management systems (WMS) and transportation management systems (TMS) can lead to inefficiencies, restricted visibility, and difficulty in coordinating warehouse and transportation activities.
Modernising WMS technologies and combining them with TMS can assist in overcoming these problems and optimising overall supply chain operations.
How to Handle Delivery During Peak Season Using a Flexible Logistics Partner?
Managing peak seasons can be easy if you follow a proper strategy and use a flexible logistics partner that can cater to urgent demands. Here are a few steps that you can follow:
Create and Communicate a Clear Plan
At present the logistics sector in India is expected to grow, one of the primary reasons being the increase of demand in Tier-II and Tier-III cities.
Therefore, set a clear plan within your organisation and with your logistics partner. This will include identifying peak periods, charting out your logistics network, and setting realistic goals.
Then, analyse the historical data and predict demand to anticipate possible bottlenecks and create contingency plans. Communicate this plan to your logistics provider, employees, as well as customers to align their expectations.
Leverage Automation for Shipment and Logistics
Automating shipment and logistics operations will effectively streamline the entire logistics process and prevent unwanted disruptions. Ensure you and your logistics partner automate scheduling, task allocation, roster management, route planning, etc., to ensure operational excellence.
Moreover, automated systems for inventory management and tracking can significantly decrease errors and increase delivery speed. According to industry reports, businesses that leverage AI and ML-powered automation technology can achieve a net auto allocation rate of over 99%.
Select the Most Appropriate Mode of Transit
During peak seasons, timely delivery depends largely on the mode of transport, which is crucial to ensure timely delivery. Choosing a flexible logistics partner will help you to assess the available transportation options and select accordingly.
For instance, if your inventory mostly comprises parcel carriers, less-than-truckload (LTL) transportation may seem more suitable. However, due to its slower transit times, choosing a full truckload (FTL) will save you more time and also ensure safe and secure delivery to the end user.
Choose Carrier Based on Shipment Load
Once you have estimated the mode of transit, you must choose the right carrier. Choose a logistics partner that can leverage its network of carriers and identify the most suitable options based on capacity, service quality, geographic coverage, etc.
By using load-matching algorithms and real-time data analytics, you can ensure optimal utilisation of carrier capacity, reducing the chances of delays and improving delivery reliability.
Leverage a Reliable Logistics Partner
Partnering with the right logistics partner during peak times offers scalability, flexibility, expertise, and resource optimisation. By utilising their infrastructure and workforce, you can efficiently continue logistics operations and service your customers to the best of your abilities. Studies show that about 64% of 3PL users agree that such carriers reduce their overall logistics costs.
Moreover, there will be improved customer service achieved through timely order fulfilment and efficient delivery. With your logistics handled by a trusted logistics partner, you can focus on core competencies, such as product development or marketing. Therefore, when working with a reputable logistics partner like Porter, you can handle the surge in demands as well as ad-hoc requirements.
In essence, effectively managing peak season demands is crucial for businesses to meet customer expectations and maximise revenue opportunities. Using a flexible logistics partner, businesses can overcome challenges such as inventory management and meeting delivery deadlines.
Leveraging their expertise and scalability, coupled with data analytics and technology, they enable streamlined operations and efficient supply chain management. So embrace a successful partnership with Porter today and grow your operation. With its wide network and over 5,00,000 delivery partners, you can navigate peak seasons successfully, ensuring complete customer satisfaction well within your budget.
