Ensuring timeliness during peak holiday shipping periods

Be it Tết (Lunar New Year), Hùng Kings' Festival, or Reunification Day, holiday seasons are a time for festive cheer, family reunions, and opportunities for gift-giving amongst consumers. However for businesses, these very aspects bring a unique set of challenges, particularly when it comes to order fulfillment.

Customer expectations tend to reach new heights during this period, with fast and reliable holiday shipping becoming paramount to ensure packages and gifts are delivered before the festive season ends.

With so many shoppers taking advantage of holiday sales and offers, a timely delivery can be the difference between a delighted customer and a disappointed one, significantly impacting brand perception and future purchasing decisions in the long run. Moreover, online reviews and social media can hold significant sway over future purchasing decisions, with negative experiences quickly going viral and potentially turning off new customers from ever purchasing from a brand. According to Statista¹, around 57% of Vietnamese shoppers found fast and flexible deliveries to be a leading factor in making online purchases, and 62% found a seller’s reputation to be just as important.

Conversely, ensuring timely deliveries can lead to increased customer satisfaction, repeat business, and positive word-of-mouth marketing, all of which contribute to improved customer loyalty. Read on to find out how businesses can tackle common challenges in fulfilling holiday logistics and meet even the most demanding of consumer expectations.

Common challenges in holiday logistics

The holiday season presents a unique set of logistical hurdles that businesses must navigate to ensure timely shipping and deliveries. Understanding these challenges is the first step towards effective supply chain management and mitigating potential disruptions.

Increased order volumes

Peak seasons, such as Tết, typically witness a surge in e-commerce shipping, putting immense strain on logistics networks. This dramatic increase in order volumes can overwhelm existing infrastructure and resources, leading to potential delays and bottlenecks.

E-commerce data analytics platform Metric estimated that combined sales revenue on Shopee, TikTok Shop, Lazada, Tiki, and Sendo – Vietnam’s five biggest e-commerce platforms – exceeded VND40,000 trillion in January and February 2024 alone², coinciding with Tết 2024. This was a 51% increase compared to Tết 2023, and a 110% increase compared to Tết 2022.

Businesses need to be prepared to handle this surge in demand by scaling their operations to implementing efficient order fulfillment processes. This might involve hiring temporary staff, expanding warehouse space, or investing in automation technology to increase processing capacity.

Weather disruptions

Adverse weather conditions, such as typhoons and heavy rains, can significantly disrupt holiday shipping schedules. Transportation networks can be impacted, leading to delays and potential damage to goods. Rising temperatures – such as the record heat wave in Ho Chi Minh City in mid-2024 – can also negatively impact delivery services³, forcing drivers to lessen or stagger their deliveries in order to avoid severe health complications.

Businesses need to factor in these potential disruptions and have contingency plans in place to mitigate their impact on peak season delivery. This may include diversifying transportation routes, using weather-resistant packaging, or partnering with logistics providers with robust contingency plans that can ensure courier safety even in inclement weather.

Supply chain bottlenecks

The holiday season can also expose vulnerabilities in the supply chain. Increased demand for raw materials, manufacturing capacity constraints, and logistical bottlenecks can all contribute to delays in peak season shipping.

For instance, a sudden surge in demand for specific holiday items, like traditional áo dài during Tết, can strain local manufacturing capacity and create delays if not accounted for ahead of schedule. By Metric’s estimate, e-commerce platforms Shopee, Lazada, Tiki, and Sendo sold 245,000 áo dài in January 2024 ahead of Tết⁴, a 6% increase from 2023 numbers. And as the áo dài’s profile rises amongst consumers in and outside of Vietnam – be it for Tết celebrations, photoshoots, or other special events – Vietnamese fashion brands need to be able to send clothes and garments overseas efficiently in order to stay competitive.

Proactive supply chain optimization is essential to identify and address potential weak points, ensuring a smooth and uninterrupted flow of goods from origin to destination. This might involve collaborating closely with suppliers, diversifying sourcing options, and implementing real-time inventory tracking systems.

Strategies for ensuring timely deliveries

To navigate the holiday shipping rush and ensure timely deliveries, businesses need to adopt proactive strategies and leverage efficient logistics solutions. Here are some key logistics tips for e-commerce businesses to consider for peak seasons:

Proactive planning

Early preparation is crucial for success during peak season shipping. This includes accurately forecasting demand, optimizing inventory management, and securing additional resources, such as warehouse space, transportation capacity, and staff.

By anticipating the surge in orders and planning accordingly, businesses can minimize the risk of delays and disruptions. Utilizing historical data, market trends, and predictive analytics can even help businesses forecast demand with greater accuracy. While implementing a robust inventory management system can ensure optimal stock levels, preventing stockouts and minimizing storage costs.

Efficient order fulfillment

Streamlining order fulfillment processes is essential to minimize delays and ensure timely peak season delivery. This includes optimizing warehouse operations, implementing efficient picking and packing procedures, and leveraging technology to automate tasks.

By improving e-commerce efficiency and reducing processing times, businesses can ensure that orders are fulfilled quickly and accurately. Adopting warehouse management systems (WMS), implementing barcode scanning, and optimizing warehouse layout can significantly improve efficiency.

Real-time tracking and communication

Utilizing advanced tracking systems and proactive communication channels allows businesses to keep customers informed about the status of their orders and any potential delays. This transparency fosters trust and reduces anxiety, contributing to a positive holiday shipping experience. This reassurance can be built at multiple points in the customer experience as well, from an initial order confirmation email to live SMS updates when the package has reached the next point in its delivery journey.

The advantages of choosing an established delivery provider

With the increased demands of peak season shipping to deal with, companies can offload some of the logistical burden by partnering with an experienced and reliable delivery provider such as DHL Express. Doing so poses some key advantages for e-commerce business, including:

Access to shipping expertise and infrastructure

Established delivery providers like DHL Express have extensive experience in handling peak season volumes and possess the necessary infrastructure to manage the surge in demand. With a vast global network spanning over 220 countries and territories, robust transportation capabilities, and strategically located warehouses, DHL Express can ensure efficient and reliable global mail delivery almost anywhere in the world – even during the busiest holiday seasons.

Technological support and innovation

Leading delivery providers such as DHL Express can provide businesses with sophisticated tracking systems, route optimization tools, and automated sorting facilities to optimize operations and ensure timely peak season deliveries. For instance, the proprietary DHL Fulfilment Network Optimizer system⁵ uses an algorithm to determine the most efficient delivery routes, minimizing transit times and improving delivery performance.

Dedicated customer service and support

Dedicated customer support teams are essential for addressing any issues or concerns that may arise during the holiday shipping process. DHL Express offers multilingual customer support in the region, ensuring a smooth and stress-free experience for both businesses and their customers. 

DHL's role in supporting timely deliveries for holiday shipping success

Timely deliveries are crucial for customer satisfaction and business success during the holiday season. By understanding the challenges of peak season e-commerce shipping and implementing effective strategies, businesses can ensure smooth and efficient holiday shipping operations.

DHL Express Vietnam plays a vital role in supporting local businesses during the holiday rush, providing reliable and efficient peak season delivery solutions, including:

Express shipping options: For time-sensitive deliveries, DHL Express services ensure fast and reliable transit times, even during peak seasons. The Time Definite Express service can ensure door-to-door delivery with guaranteed delivery times, providing peace of mind during critical periods.

Flexible delivery solutions: DHL Express offers a variety of delivery options to cater to different customer needs, including door-to-door delivery, pick-up locations, and time-definite services. On-Demand Delivery even allows customers to customize their delivery preferences, enhancing flexibility and convenience.

Advanced tracking technology: DHL Express’ advanced tracking system provides real-time visibility into shipments, allowing businesses and customers to monitor progress and anticipate potential delays. Online tracking tools and a mobile app provide convenient access to shipment information, empowering customers to stay informed throughout the delivery journey.

By partnering with DHL Express Vietnam, businesses can focus on their core operations while we handle the complexities of holiday logistics. Our dedicated team of experts is committed to ensuring timely deliveries and exceeding customer expectations, even during the busiest times of the year.

Open a DHL Express business account today and let us help you profit from the holiday rush.