DISRUPTION-BUSTING MOVES FOR 2023 AND BEYOND
GEARING UP FOR PEAK SEASONS The pandemic taught us some tough but crucial lessons about how to handle volatility. And these lessons are never more important than they are in peak season. What can you do to prepare your supply chain to withstand disruptions that arise during the busiest time of the year? Here are three suggestions.
WHEN THERE’S NO QUICK FIX, TRY THESE 3 TIPS Most organizations are under cost and cash pressure, while also trying to deal with everything, everywhere, all at once, and may need to place bets on where they can add greater resilience. In the absence of a silver bullet solution, I’m advising organizations to 1) seek transparency of value chains with the goal to rapidly assess and dampen the impact of supply or demand shocks, 2) review sourcing approaches to face likely in ation, shortages, or volatility, and 3) get moving now on bigger, bolder things to transform the cost base with the goal of cutting out waste to fund the initiatives that will drive stability and growth. Along the way, they will need clear strategies aimed at taking customers, employees, and business partners with them.
1. Plan early to prioritize exible carriers in your network.
Buying patterns have been more erratic since 2020. That year, holiday shopping was almost totally done online, and it has only returned inconsistently to brick-and-mortar shopping in the years since. This means you’ll want the carriers hauling your freight during peak to be forgiving if and when loads don’t materialize when anticipated and responsive when they do. Be sure to engage your network as early as possible before the season really kicks into gear so your rst choice carriers are on board with your plan.
–Simon Geale Executive Vice President of Procurement Proxima
2. Shift volumes in anticipation of weather- related closures .
Weather has always been a major challenge during peak season; it’s easy to predict there will be closures, but it’s impossible to know where until they are already imminent. With that in mind, try to stay ahead of the forecast by repositioning freight to avoid lanes that look like they might be threatened by inclement weather.
E COMMERCE RETAILERS GO HYPERLOCAL
3. Communicate clearly and frequently with your customers.
By bringing inventory closer to customers via micro- warehouses near dense consumer bases or leveraging store inventory for ecient e-commerce fulfillment, retailers can meet consumer demand and create more ecient deliveries. Also, companies that can oer hyperlocal fulfillment have an added advantage with speed over other retailers that might be shipping goods from across the country or overseas. That speed can mean a better overall customer experience. Organizations should consider new technologies like machine learning, real-time tracking, and artificial intelligence-driven data. Software that integrates with many platforms with ease and accuracy can help retailers
In the end, a successful peak season is determined by whether your customers are satis ed with the service they received. The more you can keep lines of communication open, the better you will be able to stay ahead of any changes in their demand and able to service their orders with a reliable carrier. Peak season may never go back to the way it was before the pandemic, but with the lessons in mind that we’ve learned over the challenging past few years, you’ll be ready to roll with whatever disruptions you’ll face in years to come.
–Shawn McCloud Senior VP of Operations Coyote Logistics
streamline fulfillment operations. –Nancy Korayim, CEO, MetroSpeedy
158 Inbound Logistics • January 2023
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