How to Properly Manage Seasonal Shipping Surges: Essential Tips for Success

29th November 2024

Seasonal shipping surges can bring both opportunities and challenges for businesses. While demand spikes are great for revenue, they can also overwhelm logistics teams, increase costs, and lead to delays if not managed properly. Whether it's the holiday rush or back-to-school season, managing these peaks efficiently is essential to maintain customer satisfaction and operational efficiency. But with solutions like InXpress's e-store integration, you can streamline your order fulfilment process, ensuring a smoother experience for both your team and your customers during high-demand periods.

 

Ready to get prepared? Let’s break down a step-by-step approach to help you handle the high season like a pro. 

Forecast Demand Early and Accurately

One of the most critical steps in managing seasonal surges is demand forecasting. By predicting demand well in advance, you can ensure that your team is prepared with the necessary resources and capacity to handle the increase.

  • Analyse Historical Data: Look at data from previous years to identify patterns and trends during peak seasons. Use this data to create demand forecasts for the upcoming season.
  • Consider External Factors: Be mindful of factors like market conditions, holidays, and economic indicators that might influence demand spikes.
  • Use Technology for Accuracy: Advanced forecasting tools, such as AI-driven software, can help you make more accurate predictions, reducing the risk of stockouts or overstock.

Pro Tip: Regularly update your forecasts as new data becomes available, particularly closer to the peak season.

Optimise Inventory Levels

Once you've forecasted demand, it’s time to adjust your inventory levels accordingly. The goal is to maintain enough stock to meet demand without incurring excess holding costs.

  • Set Safety Stock Levels: Determine safety stock levels to prevent stockouts. This buffer inventory can help you manage unexpected spikes in demand.
  • Use Just-in-Time Replenishment: For some products, consider just-in-time (JIT) replenishment to reduce inventory costs while still meeting demand.
  • Implement Replenishment Rules: Set specific reorder points based on forecasted demand, lead times, and supplier capacity.

Example: If you’re a retailer, prioritise high-demand seasonal items to ensure they’re readily available, while keeping slower-moving items at lower inventory levels to save space and costs.

Communicate Early with Suppliers

Good communication with suppliers is essential to ensure they are prepared for your peak season needs. By sharing demand forecasts and anticipated order volumes in advance, you can prevent delays and potential stockouts.

  • Send Demand Forecasts to Suppliers: Sharing your forecasts with suppliers well in advance allows them to prepare and allocate resources for your orders.
  • Negotiate Flexible Contracts: Consider setting up flexible contracts with suppliers to manage variable order quantities during peak times.
  • Create a Backup Supplier Network: Have secondary suppliers on standby, especially for critical items, in case your primary supplier encounters issues.

Pro Tip: Establish regular check-ins with suppliers during the peak season to address any concerns proactively.

Choose the Optimal Shipping Method

Selecting the right shipping method is key to meeting delivery timelines during high-demand periods. Factors like shipment size, destination, and urgency all play a role in determining the best option.

  • Evaluate Carrier Options: Work with carriers that specialise in handling peak season volume. Consider regional couriers if they offer faster service for local deliveries.
  • Utilise Multiple Shipping Options: Offer customers different shipping options, like express or economy, to spread demand across different timeframes.
  • Plan for International Shipments: If shipping globally, account for customs delays and consider using express international services to expedite shipments.

Example: Many businesses rely on air freight for urgent shipments during peak seasons, while using ground shipping for less time-sensitive orders.

Streamline Warehouse Operations

Efficient warehouse management is crucial when you’re handling a surge in orders. Simple adjustments can go a long way in improving speed and accuracy in picking, packing, and shipping.

  • Use Customised Picking Lists: Organise picking lists by order priority or product location to speed up order fulfilment.
  • Leverage Automation: Automate repetitive tasks, like label printing and order tracking, to reduce manual errors and save time.
  • Organise Stock for Easy Access: Arrange high-demand items near packing stations to minimise walking time and speed up order processing.

Pro Tip: Consider using barcodes or RFID technology for faster and more accurate tracking of inventory in real time.

Track Shipments in Real-Time

Real-time tracking is essential during peak seasons to keep customers informed and minimise the risk of lost or delayed packages. This visibility helps you identify bottlenecks and address issues quickly.

  • Provide Tracking Updates: Share tracking information with customers to enhance their experience and reduce inquiries.
  • Monitor Carrier Performance: Track the performance of your carriers to identify delays or bottlenecks. Some shipping platforms allow you to compare carrier reliability in real-time.
  • Set Up Alerts: Configure alerts for delays or delivery exceptions so that your customer service team can address them proactively.

Example: If a shipment is delayed, having real-time data allows you to notify the customer promptly and possibly offer alternatives, like a refund or credit.

Prepare for Returns and Refunds

High sales volumes during peak seasons often lead to a higher volume of returns. Preparing for this surge can save time, improve customer satisfaction, and streamline your reverse logistics.

  • Create a Simple Return Process: Make it easy for customers to initiate returns. Provide prepaid return labels to speed up the process.
  • Optimise Return Policy for Efficiency: Offer clear guidelines on return eligibility and timelines to minimise confusion.
  • Designate a Returns Area in Your Warehouse: Streamline the handling of returned products by creating a dedicated space in your warehouse for processing returns quickly.

Pro Tip: Consider partnering with a third-party logistics provider (3PL) to handle returns if you lack the resources to manage high volumes.

Prioritise Clear Communication

In peak season, keeping everyone in the loop—from customers to suppliers to your team—is essential to avoid misunderstandings and delays. Clear communication can prevent service disruptions and improve customer trust.

  • Set Customer Expectations: Clearly communicate expected delivery times and any potential delays to manage customer expectations.
  • Keep Suppliers Informed: Maintain open lines of communication with suppliers about any adjustments in demand forecasts or order timelines.
  • Coordinate with Your Team: Regularly update your team on peak season strategies, including expected workflows and contingency plans.

Example: If you anticipate delays, proactively notify customers on your website and in order confirmations, so they aren’t caught off guard.

Use Cargo Insurance for High-Value Shipments

During high-demand seasons, the risk of lost or damaged shipments can increase. Cargo insurance helps mitigate potential losses and protects your business’s bottom line.

  • Assess Shipment Value: For high-value items, consider insuring the entire shipment to cover potential losses.
  • Work with a Trusted Insurance Provider: Partner with an insurance provider experienced in handling seasonal surges.
  • Communicate Insurance Coverage to Customers: Let customers know their high-value purchases are protected, which can build trust and encourage higher-value purchases.

Pack and Label Shipments Correctly

Proper packing and labelling reduce the risk of damage during transit and streamline sorting at logistics facilities. Take extra care with high-value or fragile items.

  • Use Durable Packaging: Choose sturdy boxes and protective materials to secure items, especially for long-distance shipments.
  • Label Clearly and Correctly: Ensure all labels are visible and accurate to avoid misrouting or delays.
  • Consider Palletising Large Shipments: For bulk shipments, palletising items can reduce handling and protect goods from damage.

Pro Tip: Use pre-printed labels for common destinations to save time and ensure consistency.

Final Thoughts

Managing seasonal shipping surges doesn’t have to be overwhelming. With the right partner by your side, you can handle high demand smoothly, reduce costs, and keep your customers satisfied. InXpress offers tailored shipping solutions that are built to support businesses during peak seasons and beyond. Whether you need help with real-time tracking, cost-effective shipping options, or inventory management, our team is here to make it easy.

Contact us today to learn more about how our expert shipping services can help you navigate the busiest times of the year. Get a quote or speak with one of our specialists to see how we can help streamline your logistics and support your business growth.