6 essential peak season strategies for 3PLs in 2024

by | Oct 11, 2024 | 3PLs, Data Management, Inventory Management, Order Fulfillment, Order Management, Retailer Requirements

The familiar buzz of peak season is in the air. For retailers and their suppliers, Q4 sales typically represent 30% to 40% of annual revenue—sometimes even 50%. This translates to a tidal wave of demand for logistics services, one that can overwhelm unprepared providers.

Success in the coming months hinges on your peak season readiness. We’ve identified 6 essential tactics to help you thrive during this critical period.

1. Conduct a comprehensive warehouse audit

Start by performing an internal audit of your inbound and outbound workflows. Analyze your receiving, picking and packing processes to understand the mechanics behind each workflow. Identify redundancies and opportunities to optimize order fulfillment processes for warehouse workers.

Use your Warehouse Management System (WMS) to confirm inventory counts and cycle times. Consider implementing barcode scanning to reduce manual entry errors. Verify that all systems and integrations are functioning properly and sharing data as designed, including any systems connected to the WMS such as shopping carts, electronic data interchange (EDI), order management systems, label printing, barcode scanners and systems connected via API.

Don’t forget to audit your warehouse space utilization and address any waste. Keep reverse logistics updated and clear obsolete storage to improve space efficiency for increased volume.

Finally, perform an equipment check (of both tech and operational equipment like forklifts, motorized pickers and ladders). Confirm everything works and that first aid kits, life-saving equipment and safety wear are up to date.

2. Enhance data visibility to drive customer satisfaction

While always important, supply chain visibility is critical during peak season. If not already in place, or if only used seasonally, visibility tools should be implemented and tested for peak season capability.

To enhance supply chain visibility, implement and test internal dashboards that track daily order volumes and shipments. This data allows you to confirm service level agreement compliance and make fast, informed business decisions. For your warehouse customers, establish automated notifications for low stock, order shipments, delivery notices and other crucial inventory activities.

Real-time data access enables more efficient operations and supports proactive decision-making. When integrated with workflow analysis and output data, enhanced visibility positions your business to address surprises and maintain smooth operations during the peak season rush. By leveraging these insights to deliver superior service, you become indispensable to customers, supporting their growth year after year

3. Optimize your workforce for peak performance

Effective labor management is key to handling the surge in order volumes during peak season. During non-peak cycles, use labor analytics software or conduct time studies to track order picking times. This data helps you calculate median fulfillment times and project staffing needs for anticipated peak volumes.

As peak season approaches, establish and strengthen relationships with staffing agencies. Consider securing new contracts to prepare for unanticipated volume changes caused by weather events, transportation capacity issues or unexpected sales.

This is also an ideal time to review and update both customer-facing and internal standard operating procedures (SOPs). Conduct refresher training and recertification programs for your staff. Assess your warehouse team structure to keep each employee in the optimal role for peak season demands. To maintain high productivity levels, also consider implementing a bonus or reward system for excellent attendance during peak season.

4. Gather precise customer volume data

Surprisingly, many 3PLs are uninformed about their customers’ anticipated peak season volumes. This issue is particularly prevalent among 3PLs who haven’t invested heavily in technology, and in turn, lack data flow.

To avoid this pitfall, schedule meetings with your customers well before peak season hits. Use these meetings to obtain final anticipated volume predictions for the upcoming peak period.

5. Secure reliable transportation services

Whether dealing with contractual or steady non-contractual business, securing dependable domestic transportation arrangements is a top priority. This includes drayage, over-the-road (OTR) and final mile delivery services.

Start by nurturing your carrier and broker relationships throughout the year. Managing these relationships during peak season is challenging, and it becomes even more difficult if you haven’t fostered these connections during non-peak periods.

If you own trucks, now is the time to assess their road-worthiness and take necessary measures to minimize service failures. Asset-based 3PLs should consider onboarding additional drivers or leasing extra trucks to cover potential shortages during peak season.

6. Arrange flexible warehouse space

To prepare for unexpected surges in demand, maintain ongoing relationships with commercial real estate brokers who can provide a portfolio of overflow and short-term warehouse space options for peak season. This strategy allows for quick adjustments if capacity becomes an issue.

Use this flexible space for:

  • Poor or nonexistent volume forecasts.
  • Warehouse labor shortages that create backlogs.
  • Transportation capacity constraints causing freight backup on the warehouse floor.
  • Unexpected weather events.

Boost your peak season readiness

Get ahead of the holiday rush. Visit our SPS for 3PLs product page to learn how we can help you implement these strategies to elevate your peak season performance.

Tracey Ortiz
Latest posts by Tracey Ortiz (see all)
6 Essential Peak Season Strategies for 3PLs

RELATED POSTS