Retail peak season: Navigating your way to success
For many retailers, the end-of-year holiday shopping period can make or break their year. That’s why planning and preparing for peak season logistics is a year-round activity. Here, we look at what to expect this year, the challenges and opportunities, and more.
It’s the most wonderful time of the year…
…for retailers – but only if their supply chains can keep up with the surge in demand.
As the holiday season rolls around, shoppers are primed to spend big. For retailers, the race is on to ensure that store and warehouse shelves are stocked and ready. From Singles Day to Black Friday to Cyber Monday and even to post-Christmas sales and returns, this is a make-or-break moment. But behind every successful sale and happy customer is a supply chain working around the clock to get the right products to the right places even before consumers hit the buy button.
Peak season is all year
January = Returns & Planning
Manage the wave or returns that traditionally follow holiday sales.
Plan starts for next peak.
June = Ocean freight savings
Moving goods by ocean freight to replenish stock and position peak season moneymakers in the right places.
October = Game Time!
The game is on as sales promotions are launched ahead of the year’s biggest shopping days.
November-December = Order fulfillment
Focus on warehouse fulfillment, last-mile delivery, and last-minute international express services.
What is peak season?
For shoppers, the peak season comes around once a year, like winter or summer. But in logistics, the peak season doesn’t just happen overnight. It’s a year-long process that begins well before the first holiday lights go up. Planning starts as early as January when retailers and logistics providers work hand-in-hand to review performance and plan for the next peak. The most prepared companies begin moving goods by ocean freight over the summer months, replenishing inventories and stocking up on seasonal moneymakers.
When October hits, it’s game time as the first sales promotions are launched ahead of the year’s biggest shopping days. At this point, demand for air freight skyrockets from those who (literally) missed the boat and need to replenish stocks fast and others seizing on last-minute trends and opportunities. In November and December, the focus shifts to warehouse fulfillment and last-mile delivery or door-to-door international express services.
And just when the shopping frenzy subsides, the weave of returns begins and it’s time for specialized reverse logistics services to shine. And the whole cycle starts over again.
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The only thing certain about this year’s peak season is the uncertainty. No one can predict how exactly things will play out. Retailers and their logistics partners need to focus on what they can control.
Retailers with lots of inventory will push promotions to drive sales while working with supply chain partners to maximize efficiency and ensure last-mile capacity is in place. Those with a leaner approach will need to focus on flexibility, ready to pivot if demand jumps.
Logistics partners like DHL will play a big part in their retail customers’ success. That’s why we’re already boosting capacity, adding tech, and hiring more hands on deck to make sure everything runs smoothly.
Reach your peak!
Get ahead of the holiday rush with expert insights to help you navigate this year’s peak season. From success factors to supply chain strategies, watch this space for loads of tips and tricks.
4 factors for peak season success
Peak season brings both challenges and opportunities for retailers, from managing inventory to navigating unexpected disruptions. Discover the four key factors that can make all the difference.
Stay tuned for even more insights on how DHL Group is delivering on Peak Season.
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