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How Do Logistics Companies Prepare For Seasonal Peaks

Holiday shopping is one of the factors that cause e-commerce sales to skyrocket by 10%. It usually starts as early as mid-August as most people want to beat the holiday rush. While everyone considers gift-giving a tradition, it’s an entirely different story for e-commerce business. They also need to keep up with the demands of consumers. Not meeting their lofty expectations can spell disaster. As the demand increases, it’s important that logistics companies are also prepared. The peak season can be both a blessing and a curse for logistics companies. There are lots of challenges that they need to face to make sure that they are ahead of the competition.

A successful logistics company will always go the extra mile and follow best practices:

Deploy the required number of drivers for delivery

One of the biggest challenges you’ll face when running a logistics company is making sure that you have enough manpower to deliver the goods, especially if it’s peak season. The truck driver shortage is no longer a new scenario. In fact, it is one of the prevalent problems of many logistics companies that cause them to fall behind tougher competitors. It’s important for a logistics company to anticipate the needs of consumers before the peak season to prevent shortage and inefficiency. During the recruitment process, it’s necessary that drivers are aware of their responsibilities. When job duties are not aligned with the drivers’ expectations, there will be higher salary demands. Offering a competitive salary is also essential to show employees that you value their effort.

Set a realistic plan and budget

You can end up expanding the costs of shipping when you have more demand and limited capacity. If you have to ship a large volume of cargo, not having a realistic plan can make you suffer the cost. You’ll need to set aside a realistic plan and budget as shipping rates are expected to increase. There are unforeseen situations that will cause your shipping costs to increase. They are completely normal, but without having enough budget, you can unknowingly cause the overall shipping costs to increase. It’s important that you talk to a broker who will be able to help you out in executing these plans.

Tighten security

The holiday shipping season is also the perfect opportunity for thieves to execute their plans. As this is the time where you need to hire seasonable workers, your cargo can get stolen without anyone noticing it immediately. Someone has to keep an eye on your shipment to prevent this problem. There are many stages that shipment has to undergo before it reaches the recipient. If you’re not closely monitoring your cargo, it can get stolen or damaged. You can minimize the risk by securing comprehensive insurance. You’ll also need to separate multiple containers of LTC shipments to avoid indirect shipments as this is one of the causes of delays. If you need to take long-distance routes, intermodal transport will be needed.

Utilize technology

It’s also essential to optimize routes for faster delivery. Using Transportation Management Systems (TMS), especially during heavy holiday shipping seasons can help you keep track where parcels are and when it should reach the recipient. It will also be easier for you to get in touch with trade partners when needed. A TMS is also helpful in making sure that you’re not wasting a single cent as you can anticipate problems down the road and be prepared for possible shipping scenarios.

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