Black Friday's frenzied shopping spree marks the official kickoff of the holiday season, a time of joy, giving, and, of course, shopping. While consumers relish the opportunity to snag their desired items at deeply discounted prices, businesses face their most challenging and demanding period, requiring meticulous planning and execution across sales and logistics.
Black Friday is both exciting and stressful for retailers and the whole logistics industry. For retailers, the holiday season has traditionally been a tremendous financial boost. Last year, holiday spending reached an impressive record of $929.5 billion (LA Times).
But behind these record sales hide many challenges for retailers, as crowded stores during sales events overwhelm staff and facilitate unnoticed shoplifting. In addition, managing inventory becomes a delicate balance between meeting increased demand and avoiding excess or shortages.
What about warehouse managers? How does the big day affect them?
The run-up to the festive season is a critical time in the logistics industry, especially for warehouse managers, who have to juggle increased inventory with available space. Planning is crucial to ensure that the warehouse and its surroundings don’t end up with trucks that can’t be unloaded due to insufficient space.
Of course, the increased inventory arriving and leaving also means a heavier workload and the need for additional workers. During this time, warehouse managers are under pressure to ensure orders are dispatched quickly and accurately for on-time delivery.
In addition, increased order volumes can easily cause mistakes when people work under constant pressure, so stringent quality control measures need to be in place to minimize errors.
Delivery businesses are not in the clear
Increased Pressure to Deliver
The pressure on shipping and courier services is truly astonishing. Just for one shipping company, namely UPS, deliveries are expected to be more than 32 million parcels worldwide per day during peak season. Add the pressure on courier services to deliver packages on time, and you see courier vans, scooters, and trucks clogging city traffic worldwide.
Last-mile Delivery Chaos
Last-mile delivery, which is the last stretch to the customer’s doorstep, becomes particularly challenging during Black Friday. The combination of increased orders, demands for rapid delivery, and congested traffic mean that logistics companies are compelled to turn to technology to ensure deliveries arrive at the right address promptly.
Reverse Logistics
Faced with endless bargains and fantastic deals, many shoppers have a reality check when they take a good look at their purchases, and buyer’s remorse sets in. For logistics companies, the large volumes of product returns mean they must have reverse logistics processes that can be implemented efficiently.
Communication Essentials
With increased order volumes, expectations for timely deliveries, and potential delays, effective communication becomes critical. During this busy time, logistics companies and retailers must collaborate closely to plan and execute logistics strategies smoothly.
In addition, logistics companies need to be ready with accurate tracking information and updates to manage customer expectations.
Labor shortages
As with warehousing, logistics companies also need to increase their temporary staff to cope with the increased demand. In addition to deliverymen, drivers, customer service personnel, warehouse workers, ship operators, and forklift drivers, logistics companies also need to hire engineers and data analytics specialists to help them leverage technology and automation to streamline their processes.
Technology - the key to unraveling these challenges.
Logistics businesses must optimize their processes consistently, extending beyond the holiday season. Being well-prepared is essential to navigate the rapidly evolving business landscape. The solution lies in leveraging suitable technologies to enhance productivity and bolster competitiveness.
Order Management Systems (OMS)
Order Management Systems (OMS) are crucial in streamlining and optimizing order fulfillment processes for businesses of all sizes. By automating order verification, expediting order processing, and consolidating business data, OMS empowers businesses to formulate effective sales strategies and enhance customer satisfaction.
For logistics companies, the system provides a database of carriers, billing and payment details, and order processing records, ensuring efficient coordination between warehouses and carriers.
Warehouse Management Systems (WMS)
Warehouse Management Systems (WMS) revolutionize warehouse operations by optimizing the entire workflow, from inbound receiving to outbound shipping. By centralizing inventory data, automating tasks, and providing real-time visibility, WMS empowers businesses to streamline order fulfillment, enhance productivity, and optimize warehouse space utilization.
OCIMI stands as the sole implementation and distribution partner of Vietful, a cutting-edge Multi-Channel Business Operations Solution that seamlessly integrates OMS and WMS into a unified platform. This centralized solution empowers businesses to take control and optimize the order processing journey, from the initial order placement to the final delivery to the customer's doorstep.
Transportation Management Systems (TMS)
A Transportation Management System (TMS) is a software solution empowering logistics companies to efficiently oversee their transportation operations, spanning from operational plans, and execution, and optimizing the physical movement of goods, both incoming and outgoing to fleet management. TMS incorporates robust features, including route planning, GPS tracking, and fuel management, all geared towards minimizing delivery times and ensuring precision in operations.
Internet of Things (IoT) Devices
IoT devices have many applications in the logistics industry. With devices applying new technology such as GPS, oil sensors, heat sensors, etc., transportation businesses can track delivery progress, and shipment locations in real-time and monitor factors such as temperature and humidity to ensure the product is not damaged during transportation.
IoT technology has been widely used to automate inventory management through barcode scanners, and RFID to track the location of items in warehouses, and track inventory levels in real-time. Furthermore, automation, a prevailing trend in the industry, encompasses the deployment of robots and ASRS (Automated Storage and Retrieval Systems), is steadily gaining traction.
In pursuit of a comprehensive solution ecosystem, OCIMI has strategically partnered with Roadcast. We offer a comprehensive Transportation Management Solution comprising both software and cutting-edge equipment. By incorporating AI and machine-learning technologies, Roadcast empowers businesses to meticulously control every facet of their shipping operations.
Looking for a logistical breakthrough for your business during peak festival seasons?
Contact OCIMI today to schedule your free-of-charge consultation and unlock the path to business success.
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