Holidays are here and for some businesses is the busiest time of the year. Logistics at this season can be a challenge and requires a lot of planning.
According to Blue Grace Logistics, 19% of consumers start their holiday shopping around October and 40% in November, and they expect to spend an average of $804 in gifts.
Many large companies and retailers also start early to prepare for the seasons, starting from Thanksgiving, Black Friday and Christmas among others festivities. Some companies report that almost 40% of their total revenues comes from holidays.
That´s why having a logistics plan is so important and making a mistake could make you lose a lot of money.
Here 4 logistics mistakes to avoid this Holiday season, according to Weber Logistics:
- Not planning early enough. Forecasting and demand planning should really take place immediately after the holiday season is over in January. Your supplier can see an influx of demand in their raw materials come September, so they can drive the prices up.
- Planning too much. Overestimating inventory can also be negative for business. Some companies will keep excess inventory for “just in cases” and “to be safes” but they don’t go without consequence. An excess of materials after the holidays means paying for more warehousing space and less cash flow.
- Lack of online presence and planning. Consumers want to avoid long lines and are shopping online more and more. Make sure that you are ready to handle an influx of e-commerce business because chances are, this year’s online orders will surpass last years. Mobile sales are going up, and lines are getting shorter at big box retailers.
- Underestimating staffing and training. A lot of retailers amp up their staff during the holiday season by hiring seasonal workers. Seasonal workers are cost effective, but often time do not have adequate or proper training to understand your business. Make sure you hire seasonal workers earlier in the year and train them well.
Even if you take all the right actions, some unforeseen event can occur at the last minute with your shipping container at the port or during the trip. We recommend you to look at our products & services page and find out the best options to make sure you will also have happy holidays.