Twin challenges face the joyful period: Holidays collide with logistics breakdowns
Holiday Shopping Blitz:
Holiday shopping is a breeze for two-thirds of consumers who kick off their shopping spree by Thanksgiving. In 2021, over half of shoppers began their seasonal buying early, compared to just 51% a decade prior. But for retailers, this festive frenzy means careful planning, precise stock control, and navigating delivery issues, primarily in the final stages - the last mile.
This article sheds light on common hiccups in holiday shipping and outlines strategies retailers can adopt to make the most of this bustling season, backed by swift last-mile delivery solutions.
Holiday Headaches for Retailers
The holiday season offers customers a chance to shop, celebrate, and indulge. For retailers, however, it's all about meticulous preparation, robust stock management, and tackling delivery challenges, especially the latter stages. Several obstacles can imperil holiday delivery, and the sheer volume of shoppers makes these hurdles even more challenging. These snags include weather-related delays, transport congestion, and sudden events such as carrier strikes. A study reveals that a staggering 85% of retailers fret over running out of stock during high-profile sales events like Black Friday and Cyber Monday.
Retail Repercussions
When holiday supply chains falter, retailers face the brunt of the consequences. Stock shortages or delays translate to headaches for store owners. Empty shelves, accumulated inventory, or missing items can anger shoppers, who might opt for other stores or harbor negative sentiments about the business. A report by McKinsey & Co. shows that 70% of customers will switch stores or brands if an item is out of stock.
Some stores struggle with stock, while others are overwhelmed. In 2022, between 30-50% of retailers faced inventory miscalculations, transportation delays, and managing both store and online inventory. Carrying surplus stock means hefty discounts to move items quickly or higher costs to store the excess. To turn a profit during the holiday season, shops must wisely manage their stock while avoiding extra costs on their delivery trucks. This is where last-mile delivery partners come into play.
Battle Strategies
- Total Visibility: Continuous tracking of shipments from pickup to delivery empowers retailers to make informed decisions, optimize inventory levels, and adapt swiftly to disruptions. Partners and carriers that offer real-time tracking and shareable status updates alleviate the risk of stock-outs and offer solace to retailers and their holiday shoppers.
- Contingency Preparation: Establishing contingency plans for various scenarios, such as transportation issues, sets retailers up for success in the face of unexpected disruptions. These plans may encompass backup carriers, temporary interim delivery options, or alternate transportation providers, like FRAYT. For example, if regular carriers face holiday weather-related delays or staff illnesses, partners like FRAYT can provide reliable drivers and vehicles to help stores recover.
- Communication and Collaboration: Collaborating with transparent delivery partners is crucial. Partners like FRAYT offer a network of dedicated drivers and operations professionals who are reachable via text or call at every stage of a shipment. This accessibility enables retailers to stay informed about their inventory's condition and adjust strategies to avert disruptions, no matter the progress of their delivery.
The holiday season's inevitable supply chain disruptions can leave retailers in a pickle. However, by implementing clear-cut strategies – end-to-end visibility, contingency plans, and open partnerships – shops can safeguard a smoother, more profitable holiday season for both their business and their customers.
- To navigate the hectic holiday season, retailers must focus on proactive strategies, especially optimizing inventory levels and coordinating deliveries, aided by swift last-mile delivery solutions.
- A recent study shows that an alarming 85% of retailers are concerned about running out of stock during high-profile sales events like Black Friday and Cyber Monday.
- When holiday supply chains fail, businesses face the repercussions, such as empty shelves, accumulated inventory, or missed deliveries, which can frustrate customers and potentially lead them to switch stores or brands.
- In 2022, between 30-50% of retailers faced inventory miscalculations, transportation delays, and managing both store and online inventory.
- To address these challenges, retailers can collaborate with delivery partners offering real-time tracking, such as FRAYT, to facilitate informed decision-making, optimize inventory levels, and swiftly adapt to disruptions.
- Having contingency plans, like backup carriers, temporary interim delivery options, or alternative transportation providers like FRAYT, can help retailers achieve success even in the face of unexpected disruptions, such as weather-related delays or staff illnesses.
- Open communication and collaboration with transparent delivery partners are essential for retailers to stay informed about their inventory's condition, adapt strategies to avoid disruptions, and deliver on time, especially during the holiday season.
