How to Survive Peak Season Fulfillment Surge
Black Friday is just around the corner, and in today’s volatile global trade landscape, the importance of preparation and planning cannot be overstated. According to the 2021 Adobe Digital Economy Index, the pandemic boosted online sales by $183 billion during the 2020 holiday season! This holiday season, eMarketer predicts e-commerce sales will rise 11% to more than $206 billion and account for a record: 18.9% of total holiday season retail sales. At first glance, this is a very promising and hopeful forecast; however, retail preparation will determine peak season success or failure.
Let’s face it, the holiday season is going to test the retail supply chain. This means that warehouses must be fully optimized for fulfillment surges. If you are unsure about how important fulfillment strategies are for peak season surges, let’s take a look at last years peak season performance during the height of the pandemic.
Over one million holiday orders did not make it to their destination on Christmas Day (2020), according to estimates from ShipMatrix. You can imagine how many disappointed customers there were.
The shortfall of millions of packages came after weeks of pile ups in warehouses for shippers to catch up. At the peek of the 2020 holiday shipping season, an estimated 6 million packages a day were being left behind by FedEx, UPS, Amazon, the U.S. Postal Service and other shippers, according to ShipMatrix.
Holiday shipping delays caused headaches for consumers trying and failing to track the status of their order
Wholesalers had set order cut-off dates and order constrictions in an attempt to control fulfillment and delivery
Source: CBS News
So what does this all mean? The earlier wholesalers prepare the better. This is the time of year where wholesalers pull out all of the stops to make sure that operation run like a well-oiled engine. Maximizing productivity and effectiveness is a primary objective this holiday season. This way when orders begin to pile up there are no operational bottlenecks and production remains fluid. One of the many benefits of heightened efficiency is a guaranteed positive customer experience which not only builds trust, but also loyalty.
The goal this holiday season for wholesalers is to get orders out of the warehouse and into the hands of buyers quickly and efficiently. The lessons of the first holiday season during the pandemic have already been taught which means wholesalers have had a whole year to plan appropriately based on the 2020 holiday season shipping gridlock. Since then, many wholesalers have adopted a future-proof strategy to optimize operations by implementing new technology infrastructure that streamlines inventory fulfillment and management.
Bringing clarity to inventory management is the most valuable currency during the holiday season. New technology provides real-time inventory visibility. Building and maintaining a connected inventory strategy increases supply chain transparency which provides real time access to stock in order to better fulfill buyer’s orders. This application alone will transform a company’s peak season strategy amidst heightening demand and pressure to deliver.
Wholesalers have known for some time now that the retail industry would move online; however, this shift has happened overnight. Now, industry players must become technology and data-driven organizations to keep up with their buyers needs. So how can wholesalers implement an agile supply chain network and build new capabilities while also maintaining profitable operations at a base line? Money talks and cash flow is crucial to making timely and informed decisions. Access to working capital to fund new initiatives, respond to rapidly fluctuating demand, and fulfill holiday orders is a game changer for wholesalers this season.
Wholesalers benefit from access to a revolving credit line to fund a ramp up in staff or production amid supply chain woes and peak season. Heightened efficiency, technology-driven operations, and a fully optimized end-to-end supply chain network come at a cost. Wholesalers benefit tremendously from access to a reliable source of funds for flexibility and an added safety net to navigate the surging demand of the holiday season.
Discover how Supply Chain Finance smoothes out seasonal swings in business cash flow and provides companies with the liquidity they need to ensure goods flow smoothly. SCF improves the financial efficiency of the end-to-end supply chain and bridges the cash-flow gap for businesses investing in transformation projects, experiencing elements of seasonality, or growing key stakeholder relationships. To learn more, please contact info@traderiverusa.com.