Reflecting On 2024 and Looking Ahead To 2025
Reflecting on a Remarkable 2024 and 42 Years In Logistics With CEO, Chris Marchetti
3 min read
The Excel Team : Aug 23, 2024 7:00:00 AM
Most industries experience a peak season. For restaurants, it's holidays like Mother's Day and Valentine's Day. Accountants face their busiest time during tax season, and travel peak season in the US is during the summer. In logistics, we often think of the traditional mid-August through December.
While it might feel premature to discuss holiday preparations in August, the reality is that many retailers have already started gearing up. In logistics, however, a year-round approach to peak season preparedness is essential for staying ahead of the curve.
For businesses that rely heavily on high-volume same-day deliveries, peak season is like the final exam you've spent the entire year preparing for. It can generate a lot of revenue and exceptional service during these peak periods is crucial. Fortunately, the same-day delivery industry is no stranger to urgency and last-minute planning. To help you stay prepared, we've compiled a checklist for optimizing your delivery model ahead of time.
Peak season is a period when a business experiences significantly higher demand for its products or services than usual. This surge often occurs due to specific events, holidays, or seasonal factors.
In logistics, peak seasons occur at various times throughout the year, depending on the type of cargo and industry. Here are some examples:
Retail volume significantly increases during the last quarter of the year, from October to December. According to Transporation Insight, "e-commerce has changed everything and each year has brought a new set of problems...An avalanche of packages, faster delivery times and last mile delivery options for customers such as redirect, alternative delivery locations, special messages to the driver, etc. have completely disrupted peak season logistics."
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Healthcare logistics is typically aligned with retail peak season because that's when people are most likely to get sick and hospitals need medical supplies.
Auto parts logistics typically peaks in the spring and fall. In the spring, people prepare for longer trips and increased time on the road, leading to more wear and tear on their vehicles. In the fall, they prepare for winter by replacing tires, checking the battery, and tuning up their vehicles overall.
Unplanned peak seasons can be caused by natural disasters or public health emergencies - something we have all certainly experienced in the past few years.
It is important to have a peak season preparedness checklist to ensure you're well-prepared for both planned and unexpected events.
Peak season can be a time of both opportunity and stress. By following this checklist, you can minimize the challenges and maximize the rewards. Let's dive into the essential steps to ensure your business is peak season ready.
⬜ Analyze previous peak season data and customer feedback to identify trends and potential bottlenecks. If no such database exists, it's time to start looking for an order management and/or CRM (customer relationship management) solution or see if you can use the data from your shipping partner.
⬜ Evaluate your current resources (staff, vehicles, technology, and space) and determine if additional capacity is needed. Employ or contract temporary resources if needed.
⬜ Develop contingency plans for unexpected surges in order volume or disruptions.
⬜ Define and communicate specific SLAs for same-day deliveries.
⬜ Set expectations for delivery times, cut-off times, and any additional services.
⬜ Ensure your outsourcing partner understands and agrees to these SLAs.
⬜ Identify and eliminate inefficiencies in your order fulfillment and delivery processes.
⬜ Invest in technology solutions that can improve order management, routing, and delivery tracking.
⬜ Consider temporary staffing or overtime to meet increased demand.
⬜ Collaborate with your outsourcing partner to ensure efficient integration of order management systems.
⬜ Test and optimize the system to handle increased order volumes and real-time updates.
⬜ Implement automation and intelligent routing to minimize delivery time.
⬜ Utilize advanced routing and dispatching software to optimize delivery routes.
⬜ Factor in real-time traffic conditions, weather, and other variables.
⬜ Minimize travel time and fuel consumption while maximizing on-time deliveries.
⬜ Ensure all team members understand their roles and responsibilities during peak season.
⬜ Provide additional training on peak season procedures and problem-solving.
⬜ Prioritize employee health and wellness to prevent burnout.
⬜ Go the extra mile to resolve issues promptly and professionally.
⬜ Reward loyal customers with exclusive offers or early access to inventory.
⬜ Work closely with suppliers to optimize inventory levels and manage potential supply chain disruptions.
Remember, preparation is key to navigating peak season. By following these guidelines and staying focused on your customers' needs, you can not only survive but thrive during this hectic time.
Are you ready to transform your peak season into a period of growth and success? Let's work together to create a winning strategy!
Reflecting on a Remarkable 2024 and 42 Years In Logistics With CEO, Chris Marchetti
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