During peak seasons such as holidays and global sales events, demand for certain products is heightened. This can make it hard for e-commerce businesses to keep up, especially if they don’t have the manpower to fulfill orders quickly and efficiently. That’s why working with a third-party logistics (3PL) provider is worth the investment. A 3PL provider can help you improve your delivery speed and accuracy so that your customers are satisfied.
Common Peak Season Challenges
Below are some of the common challenges fulfillment companies face during peak seasons and holidays.
- Sudden Spikes in Order Volume: Peak season means more orders. Companies that are not prepared can experience order processing delays, inventory shortages, and a loss of revenue.
- Increased Shipping Complexity: Last-minute orders and deliveries to remote areas can often lead to increased shipping costs. Bulk orders can also cost more, especially if they need to be expedited.
- Higher Risk of Errors: Tighter deadlines can lead to more logistic errors due to stockouts, incorrect shipments, and weather delays. These and human errors with order processing can result in lost sales opportunities.
- Strain on Resources and Labour: Peak seasons can negatively affect a company’s workforce physically and psychologically. Labour shortages in recent years continue to plague the global market.
Strategies to Improve Delivery Speed and Delivery Accuracy
The first step to overcoming these peak season challenges is to improve your delivery speed and delivery accuracy. Here’s how you can do that.
Optimize Your Warehouse Layout and Operations
By locating high-demand products closer to dispatch points, you can streamline the pick-and-pack process. Storing commonly ordered items in one area that is easily accessible also reduces the order process timing. This includes storing and organizing items in a progression or logical sequence.
Invest in Automation
A worthwhile peak season fulfillment strategy is to invest in up-to-date automation. This can involve robotic picking systems and conveyor belts to speed up order processing. Having an automated inventory tracking system within the supply chain also allows for quick replenishment to reduce the risk of out-of-stocks.
Pre-Plan Inventory Allocation
During the pre-planning phase, look at your past sales data. Basing available stock on historical demand and sales forecasts can help reduce fulfillment delays. In addition, making accurate demand predictions to ensure you have adequate inventory can also help you determine the best locations for your various fulfillment centers so you can reduce shipping distances.
Enhance Your Order Management Systems
Inventory management systems are essential to streamline order processing. The risk of errors can be reduced with real-time tracking and order management software. Integrating systems to track and monitor your orders allows you to replenish stock without wasting too much. You can also improve order accuracy by implementing Radio-Frequency Identification (RFID) or barcode scanners for fulfillment purposes.
Implement Strict Quality Control Measures
It is important to have stringent quality control measures in place during peak seasons to ensure accurate order fulfillment. Inventory must be audited before being placed on shelves or in storage within the warehouse to reduce order processing errors. Double-check orders before shipping and conduct periodic inventory audits.
Leverage Predictive Analytics
To improve delivery accuracy, consider implementing predictive analytics. Forecasting supply and demand helps to reduce the risk of order processing errors, stockouts, and shipping errors. With customized software, shipping data can be evaluated so that you can make adjustments to delivery routes to improve speed.
Optimize Last-Mile Delivery
With multiple carriers, more ground is covered, allowing for more flexibility, reliability, and speed during peak periods. Use reliable private drivers to save on costs and invest in routing software to reduce travelling time. Real-time GPS tracking and dynamic route adjustments take into account required stops, traffic flow, and carrier driving behaviours.
Offer Real-Time Tracking for Customers
Real-time tracking software allows all parties to be informed in real time about the status of the delivery. If you want to retain customers and maintain customer satisfaction, it is important to be transparent with them during the entire order process. This involves providing them with updates and accurate delivery ETAs.
Invest in a Warehouse Management System (WMS)
A warehouse management system (WMS) helps you monitor and manage warehouse operations including receiving and shipping of goods. It streamlines the fulfillment process, reducing errors and providing real-time distribution. Deliver speed and accuracy can also be improved with visual tracking management.
Utilize Collaborative Robots (Cobots)
The design of automated systems within a warehouse or fulfillment facility improves productivity and accuracy while reducing errors. These cobots are used to reduce the workload of staff, particularly during peak seasons. The system features conveyors, sorting devices, voice leads, drones, and robotics.
Invest in Demand Forecasting Tools
Demand forecasting is a key tool that e-commerce businesses can use to stay ahead of customer needs and demands during peak season. You can improve delivery performance and accuracy, as well as manage data for yearly sales and peak rush times when demand forecasting for emerging trends.
Partner with a Reliable 3PL Provider
Outsourcing your fulfillment operations to a reliable 3PL provider can help you increase sales and retain customer loyalty. Third-party logistics providers have the knowledge and expertise to ensure high order volumes reach their destination quickly. This results in higher customer satisfaction and loyalty.
Contact Lean Supply Solutions to Learn About Our Customized Fulfillment Solutions
Focus on your marketing and the needs of your business by hiring Lean Supply Solutions to manage your fulfillment operations. We utilize the latest software to collect data on order cycle time and fulfillment rates to optimize your supply chain. Our logistics solutions improve delivery speed and accuracy thanks in large part to our customized lean processes and IT systems. Contact us today for a free customized consultation!
