How businesses can improve their supply chain & enlist trusted Freight Forwarders to assist in the run up to peak seasons.
Approaching the end of year, many industries are faced with their peak seasons. For many e-commerce, retail or hospitality businesses, their schedule is filled with Black Friday, Cyber Monday, Christmas, New Years Eve and Back to School. For Freight Forwarders, this period is extended to assist these businesses with preparing and accumulating stock for these seasons.
On average retailers earn 30% of their yearly sales during the final months of the year. Since this is their peak season, businesses pre-plan and coordinate their products to be available for purchase. For freight forwarders, this causes demand to grow and exceed capacity limits. This increase in demand causes the cost of freight to inflate dramatically and space for containers to decrease.
As these peak seasons are a yearly occurrence, companies should foresee these challenges and make changes before it sets in. Preparing for and re-evaluating processes will assist your company in surviving this peak season.
Below are some tips on how you can support your supply chain in the lead up to peak seasons:
Forecasting and prevention
The first step to handling the demand of peak seasons is to forecast. Identifying trends, inventory counts, business impacts and comparing to previous years is crucial for a successful forecast. Data should be collected from previous years and correlated into graphs. Research current consumer and industry trends and correlate this to your previous data. Taking time to understand all factors that could impact your peak season will allow you to make sound judgements for your shipments. Ensuring forecasting is an annual tool, will allow your business to stay ahead of the curve, manage inventory, further understand your consumers and contribute to the success of you peak season, regardless of industry.
Assigning priority to full load shipments
If there are specific items that need to be delivered at a certain time, especially if they offer higher sales for your client, they should be the first to be considered when managing and distributing goods during peak seasons. As there is a large increase in shipments during this time, delays are usually present, so it is important to always take this into account. To make sure your goods are shipped with priority, the freighter must know which crates carry the high-priority goods. By letting a freight forwarder know this before the goods are transported, this will help to guarantee these high-priority items are protected and arrive to you on time.
Splitting shipments
During peak seasons transporting freight can become difficult due to capacity limits with carriers. If your goods allow, try splitting shipments. Although it involves more organisation and tracking, you may be able to find space for your smaller ‘split’ shipments than trying to ship it all together in a 40′ container. This will also ensure that your shipments arrive at the destination faster. Giving your inventory the best chance it has at reaching your customer swiftly & ensuring there is always stock available for your business to pack. For example, having 3 containers shipped on a single vessel could hinder your business if there is limited capacity. Splitting your containers up into 3 seperate shipments would allowing one or more containers to progress and avoids the whole shipment getting stuck along the way.
Buying freight insurance
Now, you might not need to be told this but just buy the freight insurance, even more so during peak seasons. As more cargo is being transported and the risk for importers or exporters rises, it is crucial for your shipments to be protected. So, it is important to always cover your goods in case of an emergency. If items don’t arrive or if they are damaged during transport, companies usually face the losses. Therefore, it is recommended to have a comprehensive insurance policy to keep the cargo protected against any risk. Speak with your freight forwarder on how to add this to each of your shipments during peach season and further to fortify your shipments.
Hiring the services of a trustworthy 3PL partner
Among the decisions made during your peak season planning, choosing a logistics partner is essential to ensure you are profitable with your operations. Diversifying your suppliers opens a network of freight contacts, differentiation in trading terms (Incoterms), alternate routes and level of service. Besides these, companies look to hire a partner that listens to their needs, acts as an advocate for their goods in transit and can provide solutions to assist their growth. Choosing a third-party logistics provider, such as TGL, can allow your needs to be matched by a tailor made service. Giving you more time to focus on the core of your business, selling.
Securing drivers and capacity
With the heightened needs for delivery drivers during peak season, this leads to a decrease in transportation capacity and longer transit times. Working with a third-party logistics partner can help you take advantage of their supplier network, allowing your shipments to move at the earliest convenience. Ultimately, avoiding major delays, heightened costs and market volatility.
Using updated and modern technology
Transport Management Systems (TMS) can help freighters to optimise their routes, especially during shipment-heavy periods. TMS can keep track of all your items and monitor when they should arrive at their final destination. This level of visibility can allow a freight forwarder to have efficient communication with suppliers and provide accurate, real time updates to clients. These systems also allow clients to identify time slots when their goods will be available for ‘picking’ so they can better manage their marketing, website, other supplies and warehouse processes.
Using relevant tools and services this peak season will allow your business to function optimally. Accessing data and researching what is happening in your market will allow you to make informed decisions on stock counts, new styles and consumer purchasing behaviours. Understanding when to bring in an outsourced partner, like TGL, can save your business thousands in delays, costs and headaches, especially in the run up to peak seasons. If your business is interested in understanding how to further streamline your processes with a third party logistics partner, give us a call on +61 1800 845 845. Our team of thinkers would provide a tailor-made service that suits your logistics needs and wants. Another reason why our people, are your advantage.
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