For many, the upcoming holiday season will be an opportunity to relax or go on vacation, but for supply chain management companies, this is one of the most demanding phases of the year. In the supply chain management solutions industry, this period is called Peak Season, and capabilities can become stretched to the point where numerous concerns arise for supply chain, logistics, and retail professionals. The methods used to address these concerns can be the factor that makes or breaks your Peak Season.
What is Peak Season?
In the supply chain management solutions and retail industries, the Peak Season is a period in which increased shipping and retail activity occurs. This period usually begins around mid-August and lasts until Black Friday and Cyber Monday. The beginning of Peak Season correlates with the “back-to-school effect” where increased retail spending occurs as a result of customers buying products for the start of the school year. Consequently, companies must keep up with increased demand and shipments, which can pose enormous challenges and concerns for efficient supply chain practices.
Major Concerns During Peak Season:
Insufficient Capacity
The increased demand that comes with Peak Season means supply chain capabilities are stretched thin. Shippers experience a higher rate of mistakes during Peak Season because of the strain and complexity involved.
Limited Warehouse Space
Limited warehouse space can make fulfilling orders difficult and increase demand on Logistics Service Providers, or LSPs. Volume concerns inevitably lead to shipping challenges, which is especially daunting because consumers demand.
Faster Delivery Times
Amazon has established delivery practices that add pressure to competitors who lack the same resources but are expected to match the online shopping behemoth.
Increased Operational Costs
More orders mean more order picking, by far the most expensive and time-consuming element of any fulfillment center. Strategies that work during less busy periods can prove inefficient during Peak Season.
High Transportation Demand
The increase of orders requires a considerable amount of deliveries, and companies are also rushed to clear out warehouses to make room for further stock.
Inventory Supply
During Peak Season, there is a significant concern over having enough inventory in supply. It is essential to understand trends and have plans in place for replenishment, or else you risk running out of in-demand products or overstocking less popular ones.
Best Practices For Peak Season:
Automate your operations
Data analytics on inventory and worker productivity can be applied to minimize stress and inefficiencies. Use real-time data and make adjustments as early in the process as possible.
Optimize Warehouse Space
We can achieve this in various ways. Some companies are waiting to order inventory until just before Peak Season to ensure a minimal stay in the warehouse. Delivering shipments more frequently or utilizing drop shipping to keep the product out of warehouses entirely can also be helpful.
Ensure Your WMS is up to date
Outdated systems can slow down processes, which at best will inconvenience a business during Peak Season; at worst, it can prevent companies from fulfilling orders. Thus, it is highly recommended to ensure that your WMS is up to date and accurate.
Utilize Technology
Solutions such as Katalyst Software Services Limited’ iCaliper and Celero WMS can help uncover inefficiencies and lead to better processes for Peak Season and beyond.
Getting through Peak Season is a challenge for even the most prepared and resourceful businesses. Fortunately, there are a number of options that can be incorporated to minimize these operational difficulties. Contact a supply chain expert at Katalyst to find methods that best fit your business needs during this peak season.
