Over the last three years, the holiday season has presented the great unknown for logistics providers, from the effects of the global pandemic, to dangerous weather conditions, to unprecedented delays in shipping.
“This year is historically exceptional, with continued supply chain disruptions over the past 24 months continuing into the back half of 2022,” says Tony Glass, Senior Vice President, Global Business Development & Marketing, EFL Global. “There is true economic uncertainty on a global scale. With the world teetering on a recession, high inflation, and no government-issued stimulus, consumer demand has weakened, leaving uncertainty as it relates to what peak season will look like this year.”
Now more than ever, it is imperative that B2C brands, carriers, and logistics providers prepare for peak season and potential disruptions. This includes the inventory influx of 2021/22 and what that means for retailers.
“You have brands and retailers that are seeing inventory levels at an all-time high,” says Glass. “This was largely due to unprecedented surges in consumer demand last year, and production issues resulting from the pandemic and transportation issues on a global scale.”
As the holidays approach, we’ve put together a list of must-haves for supply chains to ensure they are ready for the most wonderful time of the year.
Preparation. Failing to plan is planning to fail. Ideally, brands and providers should review all the successes and issues with peak season right after it ends, making note for the following year on what worked and what didn’t. From there, teams should monitor the market and forecast to the best of their ability to ensure enough lead time, capacity, and inventory is prepared for the holiday season.
Streamlined Internal Processes. Preparation also includes reviewing internal processes and streamlining where able. Brands should review their existing workflow with their logistics provider, evaluating and automating to create more efficiency. As always, these internal processes should all be tied to a specific business goal to ensure no work is being done without cause.
End-to-End Tracking & Visibility. Brands should work with a logistics provider that can provide full supply chain visibility in real-time. When issues arise, a high-visibility supply chain can immediately flag them and strategize on next steps.
Over-Communication. It goes without saying that communication is one of the most important elements to supply chain success. Over-communication can never hurt; regularly scheduled meetings with stakeholders, providers, and external suppliers before and throughout peak season can mitigate risks and address any concerns before the cargo starts moving and while in transit.
Consider Multimodal Transportation. Multimodal transportation offers a brand access to multiple modes of transportation through one logistics provider. This removes limitations on transportation options, reduces the risk of delays, and increases opportunities for factory-to-door shipping.
“This year, more than ever before, we’re asking our customers for transparency in their forecasting and objectives,” says Glass. “Logistics providers need know if brands will satisfy demand with existing inventory in their distribution network. Providers also need to identify if there will be a reliance on ocean freight, or if there will be a pivot to air freight to plan capacity accordingly.”
With challenges comes an opportunity to get ahead of your industry competitors in the biggest shopping event of the year. It’s important to work with a logistics provider that has experience in your vertical, trade lanes, and product-specific shipping requirements.
“This is uncharted territory, and by no means a traditional peak season or year. Clear communication and planning will be critical for retailers to succeed for the holidays,” says Glass.
Working with a logistics partner with retail expertise creates the best-case scenario for shipping products for the holidays. Nail down the must-haves, find a partner you can trust, and enjoy a successful peak season.
