Navigating the logistic challenges of the peak season: Black Friday & Christmas
As the peak season, characterized by the madness of Black Friday and the rush of Christmas, is upon us, e-retailers also face a number of challenges. From skyrocketing demand to unexpected disruptions, webshops must be ready to serve their customers with the highest quality. We tried to collect what is worth paying attention to from a logistics point of view, so that we can be successful in this period as well.
1. Unpredictable peaks in demand
Challenge: During the peak season, consumer behavior is completely unpredictable. The volume of orders can skyrocket, stretching logistics networks to the limit. Product shortages and delivery delays are all too common.
Solution: To overcome this, companies need to be able to accurately determine demand, but this task often presents challenges to e-tailers. Historical sales data and current market trends provide valuable insight, allowing you to predict peaks and replenish inventory accordingly. Close cooperation with suppliers and adequate stock of the most sought-after products can help a lot during this period.
2. Overburdened logistics companies
Challenge: The increasing volume of packages can lead to delays. Roads and air freight routes as well as ports become bottlenecks. These can affect delivery times as well.
Solution: Providing customers with several delivery partners. Establishing the right relationships with several logistics companies can help you during this period. It may be worthwhile to work with a partner who has contracts with several logistics service providers, so it is possible to secure several service providers and the distribution of package quantities does not affect the delivery price.
3. Obstacles to the "last mile" transport
Challenge: The last section of the road, i.e. the last mile transport, becomes a significant bottleneck in the peak season. Increased traffic and delivery density in urban areas can cause delays and thus customer dissatisfaction.
Solution: It is worth offering customers not only several delivery partners but also several delivery methods. In addition to home delivery, parcel lockers are now essential, but parcel points should also be integrated and made available in the webshop so that the customer can choose the most convenient solution for them.
4. Management of returned goods
Challenge: Along with increased sales, the number of returned goods also increases. This wave occurs especially in the period after Black Friday and after Christmas, which can also burden logistics systems and service providers.
Solution: It is worth creating an efficient and simple return process. Clear return policies are key, as well as making them available to customers. If we also sell internationally, it is important to have a local return address so that the customer in the given country does not have to return the product abroad.
5. Manpower strain
Challenge: Increase in order volume puts enormous pressure on warehouse and assembly staff, which can lead to errors.
Solution: Temporary reinforcement/expansion of the workforce can help. Investing in employee training and wellness programs can increase productivity and morale. The introduction of automation in warehouses, such as robotics and conveyor belt systems, can also ease the physical burden on workers, but it is also possible to outsource logistics tasks to fulfillment service providers.
Summary
Dealing with the logistic challenges of the peak season requires preparation. By diversifying delivery options, strengthening labor management and preparing for peaks in demand, e-tailers can turn potential disruptions into great opportunities. It is worth preparing in advance so that this period is not only about survival, but also that we arrive at the busiest time of the year prepared.