Have you considered how you will manage the forthcoming rise in peak season sales? There will be pressure on your logistics operations: Will you be ready? Seasonal demand and year-end orders throw up many challenges: suppliers not meeting delivery dates, changes in consumer preferences, demand for storage space, and staffing challenges. You can expect competition for short-term transport services, seasonal workers, and many demands on your suppliers for quick replenishment.
What has changed in a year?
The continuing increase in online sales is driving the need for new technologies. Cloud-based software solutions are becoming standard requirements for forecasting and inventory management. Mobile tools such as headphones and wearable gadgets are used to collect data and communicate instructions within fulfilment operations. Automated guided vehicles (AGVs), drones and robotics mean less reliance on humans to perform repetitive tasks. Decision-making is becoming increasingly data-driven, aided by AI. Tighter delivery windows and higher customer expectations can be effectively managed if you start now.
What can you do now?
1. Analyse Last Year’s Data: Review past peak season performance to learn from mistakes. Identify which products and services excelled and which fell short.
2. Streamline Processes: Evaluate current processes, equipment, and resources to eliminate inefficiencies. Adjust where necessary and ensure you have the right tools in place.
3. Optimise Inventory: Clear out obsolete and slow-moving stock to create more usable space.
Five key practical actions to take
1. Forecast Inventory Needs: Use sales projections to ensure consistent supply. Share data with key suppliers to guarantee continuity and consider implementing an inventory management system (IMS) for tracking stock across all facilities.
2. Optimise Warehouse Layout: Review your warehouse layout to accommodate increased volumes and improve picking efficiency. Make high-volume items easily accessible and clearly label storage areas. Implement a warehouse management system (WMS) to enhance order fulfilment accuracy.
3. Select Reliable Delivery Partners: Negotiate with dependable couriers and 3PL providers to offer various delivery options. Collaborate with partners to share loads, particularly in urban areas.
4. Plan Staffing Needs: Use insights from last year to plan staffing levels and build contingencies. Source and train extra staff early.
5. Streamline Returns: Simplify the returns process and clearly communicate it to customers. Consider using chatbots to provide instant assistance.
Managing the peak season demands
The challenges of the high-season sales period weigh heavily on facilities that run manual processes. Why automate? Stock items must be of the right quality, positioned in the right place, at the right time, and in the right quantity. Inventory management’s difficult task is balancing and satisfying all these needs. Tracking your inventory levels accurately is the key. An IMS or WMS has the following benefits:
•automated replenishment of items
•inventory data is live, in real-time
•better-optimised warehouse space
•less paperwork, fewer errors
•enhanced customer service
SCCG’s management consulting team is highly skilled in demand planning, inventory management, and automated solutions. Our expertise includes selecting and implementing the most suitable technology to optimise your supply chain processes.
We advise on alternative cost models and negotiation techniques that will result in sourcing and implementing the required services at the right price.
There is still time to make a move now for the peak season.
If you’re ready to review your operations for peak season demand, contact us at +44(0)1926 430 883 or email info@sccgltd.com.
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