Five Ways Shippers Can Reduce Risk as Peak Season Arrives
November 7, 2022
Daniel Sokolovsky, SCB Contributor @ supplychainbrain.com
Record fuel prices, increasing e-commerce demand, and salary lags in relation to inflation are all a recipe for a challenging peak season for shippers come December. The home-delivery spike caused by the COVID-19 pandemic is beginning to slow down, but shipping costs remain high, and major carriers are focused on prioritizing the most profitable shipments. That leaves smaller businesses in the dust looking for capacity.
According to Container xChange Industry Pulse Survey of 200 industry professionals, 51% expect the 2022 peak season to be worse than 2021, while 26% say it will be “less chaotic,” and 22% expect about the same level of “chaos” as last year.
Despite the pandemonium, there are ways to reduce risk as peak season approaches. By better utilizing assets, increasing inventory, and scaling up and down appropriately, both shippers and carriers will be better positioned to handle whatever peaks season throws their way. Following are some key steps to take.
Deploy additional click-and-collect fulfillment options. The pandemic spurred a greater interest in the click-and-collect fulfillment model, making it easy for consumers to shop online and pickup in the store, including via curbside delivery. The interest in this type of shopping style hasn’t waned since the pandemic began, and is one way for retailers to optimize fulfillment without incurring higher transportation costs. A model whereby nearby stores share inventory avoids additional transportation spend, while relocating stock from existing storefronts is a win for everybody.
Implementing click-and-collect technology can also lead to better customer retention because it allows the consumer to shop online, while reducing package porch theft, last-mile delivery cost, and even environmental damage. Customers also enjoy the ability to choose a convenient time and date for them to pick up their package.
Plant inventory geographically closer to end-customers. Click-and-collect places product closer to the end customer, lessening the need for traditional transportation. However, that also means managing transfers between stores, distribution centers, urban fulfillment centers and microhubs. Utilizing a middle-mile carrier that can move your freight without delays, and provides service to all these types of locations, is important to consider.
