Holiday difficulties: Celebratory times collide with disrupted supply chains
Let's Talk Holiday Shopping Woes and Solutions for Retailers
In the crazy holiday shopping world, it's no surprise that two-thirds of consumers are already thinking about their purchases by Thanksgiving. In 2021, that number was up from a measly 51% a decade prior. But for retailers, this surge in shopping means dealing with tight stock management and shipping nightmares—especially in the last mile.
We're here to dive into the problems brewing behind the holiday cheer and how companies are using clever delivery solutions to combat them.
Holiday Shipping Headaches for Retailers
Let's face it, customers love a good holiday shopping spree, but for retailers, this season is all about careful planning, tight stock control, and battling shipping gremlins—particularly the last stages of delivery. So, what's causing all these holiday shipping woes?
Problems can range from inclement weather delays, transport congestion, and unexpected events like strikes, to the looming fear of running out of stock during sales events like Black Friday and Cyber Monday. Studies show that an eye-watering 85% of retailers worry about stockouts during these events.
The Ripple Effect on Retailers
When supply chains buckle during the holiday season, the fallout can be harsh for retailers. A lack of stock means panicked store owners with empty shelves or products stuck in warehouses, late deliveries, or flat-out stockouts, which can lead to grumpy customers. Research by McKinsey & Co. shows that if something is out of stock, 70% of shoppers will ditch your store and head to a competitor!
Some stores may have a surplus, but others may be strapped for goods. In 2022, between 30-50% of retailers had too much stock on their hands. This predicament can happen due to faulty predictions, shipping delays, or juggling both in-store and online orders. Having too much stock means big discounts to offload things fast or paying through the nose to store the excess inventory. And let's be real, who wants to take a profit hit during the holiday season? This is where last-mile delivery partners come into play.
Navigating Supply Chain Disruptions Through Technology
- Keeping Tabs on Your Shipment: Real-time tracking of shipments from pick-up to drop allows retailers to make smart decisions, optimize inventory, and adapt lightning-fast to supply chain mishaps. Transparent partners and carriers offering live updates help retailers avoid dreaded empty shelves and bring peace of mind to both stressed shoppers and busy store owners.
- Planning for the Worst: Creating contingency plans for various situations—like last-mile deliveries—helps retailers prepare for unexpected disruptions, like carrier strikes or weather-related delays. Backup carriers and last-mile delivery partners provide alternative transportation options if your usual provider runs into trouble. For example, FRAYT offers professional, premium drivers and vehicles to help you recover in a pinch.
- Communication is Key: Working with delivery partners who value transparency and strong lines of communication is vital. A partner like FRAYT has a network of dedicated delivery drivers and ops pros who are ready to chat or text any time throughout your shipment. Staying in the loop like this helps retailers keep their eyes on the prize—stock control—and adapt to disruptions as they happen.
Holiday season supply chain blunders may be inevitable, but retailers can take proactive steps to weather the storm. By establishing and implementing end-to-end visibility, contingency plans, and transparent partnerships, retailers will secure a smoother and more profitable holiday season for both their company and their customers.
Fun Facts:- Last-mile delivery solutions help retailers address supply chain challenges during the holiday season by improving capacity, flexibility, efficiency, and customer experience amid peak demand pressures.- Multi-carrier shipping allows retailers to distribute shipping volumes across multiple carriers, preventing bottlenecks and maintaining delivery capacity during the holiday rush.- Flexible warehousing platforms allow retailers to allocate storage space more efficiently during the holiday season, decreasing delivery times and mitigating disruptions caused by shipping routes.- Last-mile delivery software optimizes route planning based on customer priorities, delivery time windows, and fuel efficiency, reducing delivery delays and increasing customer satisfaction.- Autonomous vehicles operating in last-mile delivery help retailers tackle driver shortages and maintain scalable, round-the-clock delivery operations during the holiday rush.- Locker delivery systems offer centralized pickup points, reducing the risk of missed deliveries and package theft during peak and disrupted supply chain periods, while also offering customers increased flexibility in picking up their orders.
- In the holiday shopping season, unforeseen events like strikes, weather-related delays, and fears of stockouts during sales events can add to the shipping headaches for retailers, with 85% expressing concern about stockouts during Black Friday and Cyber Monday.
- From a surplus of stock to empty shelves, retailers face challenges in managing their inventory efficiently, and in some cases, may incur significant costs for storing excess inventory or offering deep discounts to offload products.
- To navigate supply chain disruptions, retailers employ various strategies such as working with transparent delivery partners offering real-time updates, creating contingency plans, and implementing last-mile delivery solutions that offer improved capacity, flexibility, and customer experience. Partnering with companies like FRAYT provides dedicated drivers, strong communication, and alternative transportation options during contingencies.
- Innovative practices such as multi-carrier shipping, using flexible warehousing platforms, optimizing route planning with last-mile delivery software, deploying autonomous delivery vehicles, and implementing locker delivery systems help retailers offer a resilient and seamless holiday shopping experience for customers.
