It’s the most wonderful time of the year – for most. The buzz of the holiday season tends to bring out the best in people, but it also brings a whirlwind of considerations and complications for warehouses and distribution centers (DC’s). Peak season for shoppers means peak season for warehouses and DC’s. Retailers
The holiday season poses a number of challenges for us all. Running around between holiday parties, meeting end-of-year deadlines at work, and shopping for your in-laws may top your list, but the biggest peak season challenges for warehouses and DC’s are, and always will be:
Forecasting is an art – a consistently inaccurate art. Companies leading the pack on this front are using machine learning, advanced algorithms, and predictive analytics to find patterns and trends in historical data to more accurately predict volumes and patterns across different channels and staff labor efficiently.
Five years ago, temp workers had to be brought in six to eight weeks prior to peak season to be trained and brought up to speed with equipment and processes, but increased use of robotics and automation across warehousing operations now allows companies to train workers to accurately pick products using many systems in less than an hour. Bringing temporary workers in for eight weeks of training is a huge cost and many decide to leave before peak season is over, which initiates the cycle of training and associated costs all over again. Automation allows companies the adaptability they need to address workforce challenges and labor constraints without suffering downtime in their busiest moments.
The most important strategy that 3PL and their customers can implement to effectively take on peak season is to maximize the benefits of their relationships by providing full transparency and opening the lines of communication as early as possible. By discussing items like schedules of promotions and best practices and standards for the biggest ones like Black Friday and Cyber Monday far in advance of peak season, vendors can integrate historical data and gain insights into their operations to optimize their efforts. Popular products may come and go, but some demand patterns remain consistent year over year. Leveraging the knowledge and experience of your partners is an invaluable tool that cannot be overstated in trying to scale the peak of the holiday rush.