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Why is logistics so crucial during peak selling season?

E-commerce · 6 Mins Read

Why is logistics so crucial during peak selling season?

The festive season is a crucial time for businesses when customer demand is at its highest. An efficient and well-run supply chain can make all the difference in ensuring that orders are fulfilled on time and inventory levels are maintained. 

For most people in Australia, festivals and holidays are a time to celebrate, enjoy, give, and get-together with friends and family. However, for brands and businesses, the festive season takes on an entirely different meaning altogether: brand awareness and season sales. Essentially, any widely celebrated festival or public holiday here in Australia is peak selling season for all brands and businesses.

And this is where logistics comes into play. While the festive season may only last for a few weeks, the planning and preparation required to make sure that businesses are adequately stocked during this time is immense. From making sure that there is enough stock on hand to meet customer demand, to ensuring that orders are fulfilled quickly and efficiently, logistics plays a pivotal role in peak selling season success. Let's look at why logistics is so crucial during this year-end festive period, and how businesses can ensure that their supply chain is up to the task. 

Why is logistics so vital during the festive season?

There are a few key reasons why logistics is so important during peak selling season. Firstly, it’s during these periods that businesses see the highest volume of orders and customer traffic. This means that there is an increased need for accurate and efficient order fulfilment. Secondly, due to the high volume of orders, stock levels can often become depleted quickly. As such, it is crucial that businesses have a system in place to restock items as soon as they are sold, to avoid running out of stock and disappointing customers. Finally, it is during peak selling season that delivery times become especially important. Customers expect to receive their orders promptly, and if they don't, they are likely to take their business elsewhere. This puts immense pressure on businesses to ensure that orders are dispatched quickly and efficiently. 

Adapting to new customer needs

With the pressure of losing customers, it is no surprise that businesses want to stay ahead of their competitors. To achieve this, businesses must adapt their supply chains to new customer needs. This means having automated stock management and a steady supply of products from an omnichannel perspective. By automating stock management, businesses can keep track of inventory levels in real-time and ensure that they always have the products their customers need in stock. This is especially important for businesses that sell products online, as customers expect to be able to purchase items immediately. Additionally, by having an adequate supply of products from an omnichannel perspective to meet customer demand, businesses can ensure that they always have the products their customers want, regardless of how they choose to shop, be it at physical stores or via e-commerce websites.

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Automation is key

Automation is vital to increasing e-commerce sales for several reasons. First, automation can help streamline the listing and management of inventory, as well as take care of customer orders and queries. This means that e-commerce businesses can spend less time on administrative tasks and more time developing their products and marketing their business. Secondly, the automation of e-commerce business processes can help improve the accuracy of orders and reduce the likelihood of human error. This is especially important in industries where products are sold by weight or measure or where there is a risk of safety issues if products are not correctly labelled. Thirdly, automated systems can provide valuable insights into customer behaviour. This helps e-commerce businesses improve their marketing strategies and better target their audience. Finally, automated systems can help e-commerce businesses improve their delivery times and order fulfilment rates, as well as reducing the costs associated with these processes. In short, automation is vital to increasing e-commerce sales due to its benefits in terms of efficiency, accuracy, customer behaviour insights, and cost savings.

Always monitor your logistics

E-commerce businesses must monitor their logistics to make it more efficient during peak selling season for several reasons. Not only are you dealing with increased customer demand, there is also a need to contend with shipping delays, inventory shortages, and other logistical nightmares. Furthermore, the festive season is also a period when many businesses experience the highest levels of returns and cancellations. In other words, it's a time when your logistics operation is under immense pressure. By monitoring your logistics closely, you can ensure that your business is able to meet customer expectations and avoid any disruptions during the peak selling season. Here are some of the most important metrics to monitor during the year-end peak period:

  • Order Volume: One of the most important things to track during peak selling season is order volume. This will give you a good idea of how much additional strain your logistics operation is under and whether you need to make any adjustments. For example, if you see a sudden spike in orders, you may need to hire additional staff or work overtime to keep up with demand.

  • Shipping Delays: Another key metric to track is shipping delays. This is especially important if you're shipping products from overseas suppliers. Longer shipping times can lead to frustrated customers and increased returns. To avoid shipping delays, consider using air freight or expedited shipping options for peak season orders.

  • Inventory Shortages: Don't let inventory shortages ruin your festive season sales. Keep a close eye on your inventory levels and re-order products as needed. You may also consider stocking up on popular items before peak selling season begins.

  • Returns and Cancellations: Finally, be prepared for an increase in returns and cancellations during peak selling season. This is normal, but it can still put a strain on your logistics operation. To minimise returns and cancellations, communicate your return policy to customers and provide them with easy-to-use return labels. 

By monitoring these key metrics, you can make the necessary adjustments to keep your logistics operation running smoothly during peak selling season. Never wait until the last minute to get your operation in order – start monitoring these metrics today.

Manage your time in peak selling season

If your business is gearing up for a busy peak selling season, you will want to ensure your logistics are sorted to avoid any stressful last-minute hiccups. DHL Express can help take the pressure off with our comprehensive range of express shipping services. We can handle all your international shipping needs, whether you're shipping parcels regularly to customers overseas or every now and then. With our convenient online tracking tools, you can always stay up to date on the whereabouts of your shipments. If you are looking for a hassle-free peak selling season, be sure to apply for a DHL Express account today. Come discover how we can work with you to guarantee your orders are delivered on time, every time.

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