Welcome to Parcelconsulting
Welcome to Parcelconsulting
Ecommerce has seen staggering year-over-year growth, and it has only skyrocketed since the beginning of the global pandemic as consumers are choosing or mandated to stay home. Total spending is projected to surpass $4.2 trillion by the end of 2020. Meanwhile, consumer expectations have driven online retailers to offer lightning-fast order fulfillment, many now offering same-day delivery. The coordinated efforts along global supply chains make this possible, but the high volume of peak shipping season puts strain on these operations.
With just a few months until the holidays and even less time until consumers start their holiday shopping, supply chain professionals should be preparing for peak shipping season. Here are some actionable tips to get ready for the busiest time of year right now.
Forecasting is the key to preparation. The better idea you have of what to expect, the more work you can do ahead of time to have a smooth peak shipping season. We recommend focusing on these three areas when it comes to forecasting: visibility, shortfalls and exceptions.
Businesses should keep in mind there is a time frame between when an order is submitted for production and when it is ready for shipping, and the length of that time frame affects costs. Many businesses are unaware of what happens during the production process, but savvy shippers seek visibility into these operations to uncover milestones that help them plan. That way, they can use these milestones to make sure orders are moving through production on time. Late orders can create chaos later in the supply chain, but damage can be minimized when you know as soon as possible that production is running behind schedule. Visibility is key to not only your performance in shipping but also to customer satisfaction so their expectations can be managed.
Increased visibility also helps shippers avoid shortfalls so they can continue to partner with the best carriers. Most of them have advance booking policies and expect the full shipment that was booked—if a business only delivers a carrier three containers when they promised seven, the carrier is well within its rights to discontinue the partnership. This leaves the carrier with a partially empty shipment and the business with fewer options for when peak season arrives, plus a reputation of being untrustworthy.
Despite shippers’ efforts to ensure the supply chain is running as intended, issues do arise, especially during peak season. These are inevitable exceptions. Part of forecasting is understanding where logistics most often hit snags so you can be nimble and adapt accordingly. Leverage technology to track your supply chain for maximum organization and efficiency.
During peak shipping season, it’s not enough to have just plans and processes in place if you want your business to thrive. You need technology. Shipping software is the tool that will take your business to the next level so you can stay competitive.
Forecasting and visibility are some of the top benefits of shipping software. Each shipment will be accounted for, and you can track them all in real time, so nothing slips through the cracks. This will put you far ahead of the competition, as only 6% of businesses have full supply chain visibility even though it’s a top three strategic priority.
You’ll also be able to optimize shipping methods, including route and mode, to save time and money. Peak shipping season means everyone’s resources are stretched thin, so shipping software will do the rate shopping for you, so you get the most out of you spend. To save even more time, you can automate inventory searches and shipping information entry.
Shipping software helps with everyday errors as well. As mentioned previously, no supply chain is perfect and errors happen, but they could be costing your business well into the thousands of dollars per year. Software reduces human error, so you won’t have a mislabeled shipment delivered to the wrong destination, incomplete orders or incorrect carrier service levels being used.
Greater demand for shipments equals higher shipping rates and, in some cases, peak season surcharges to cover upstream costs. It is easy to see how your expenses can quickly add up during this time. That is why you must set a realistic budget and stick to it while ensuring you are getting the best shipping rates possible on all outgoing parcels.
Review your costs from previous years compared to your costs at present to gain insight into the inflation you can expect. Additionally, explore lesser-used delivery options that could result in big savings. Parcel Consulting can audit your current shipping strategy for free and point you in the right direction.
Just as volume increases during peak shipping season, so does cargo theft. The influx of seasonal workers creates an environment full of unfamiliar faces, making theft much easier—especially for LTL shipments that have the most amount of exposure. Protect your cargo with insurance, stagger your shipments and ship direct whenever possible. You’ll not only avoid the delays of indirect shipments, but you’ll also minimize points of contact and, therefore, cargo theft.
The high volume of peak shipping seasons requires developing a holistic shipping and logistics strategy, so your supply chain doesn’t collapse under the strain. With so many moving parts, this is difficult for any business to do on its own. Instead, get in touch with the experts so you can return your focus to your favorite parts of running your business. Whether that means you team up with a consulting company to right-size your packaging to ship more and spend less or you integrate a bi-coastal shipping and fulfillment strategy that gives you the ability to ship anywhere faster and for less, timing is of the essence.
Parcel Consulting was started with a simple mission in mind: Connect end shippers with the best carrier and rate strategy for their needs and the best software options to streamline, automate and improve the accuracy and efficiency of the daily pick, pack, and label-printing process for their business.
We work with many different carriers and software partners, so that we can recommend the best solution based on more than a decade of actual experience with all these providers.
Most people, even those experienced in shipping and logistics, are surprised to find out how many new and innovative carriers and software options exist now.
We have been tracking, comparing and evaluating them objectively for more than 10 years and we freely share our personal review of your shipping needs by simply scheduling a phone call or video conference with one of our experienced shipping consultants.
We’ve been preparing for this for more than a decade and we’re here to help! Give us a ring to discuss your options at: 833-PARCEL-1 (833-727-2351).
