Coping with Seasonal Volumes such as Holidays and Year-End.
In an era where global supply chains are paramount, adopting a global perspective on logistics becomes increasingly important. Despite insights shared by various global leaders, accessing and comprehending this information in one place can be challenging. Colosseum aims to facilitate understanding of global logistics trends by sharing insights that lead various global logistics markets.
If asked, “Does the sales volume of the products you handle tend to spike during specific seasons?” many e-commerce sellers would answer “Yes.” Whether it’s sports equipment selling well in summer or health supplements gaining attention during holidays, certain products experience an increase in orders during specific times.
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Seasonal products during holidays, year-end seasons, and family months can contribute significantly to annual sales. Therefore, it’s crucial to plan and prepare in advance to boost sales during these specific periods. Typically, preparing for winter products should start as early as summer.
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The most crucial aspect during special periods is customer satisfaction. To achieve this, smooth order processing, on-time delivery, and excellent customer service are essential. Of course, supply chain management is equally indispensable.
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In this context, let’s explore methods to smoothly sell seasonal products, increase customer satisfaction, and maximize profit.
This article covers:
• Characteristics of seasonal logistics during special periods
• The importance of demand forecasting
• Strategies for handling logistics during special periods
Check the annual demand trends for the products you handle. When demand for a product increases, it secures customers and boosts sales. For instance, if a certain type of tea gains attention through various media, the sales volume of that tea is likely to rise. Therefore, understanding the trends of the products you handle is crucial.
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Before entering a special period, make preparations for operations, storage, and packaging, and conduct promotion plans and sales predictions. Most consumers plan and spend during holidays or annual events. Offering promotions during such times can stimulate purchases.
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Check the annual demand trends for the products you handle. When demand for a product increases, it secures customers and boosts sales. For instance, if a certain type of tea gains attention through various media, the sales volume of that tea is likely to rise. Therefore, understanding the trends of the products you handle is crucial.
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Before entering a special period, make preparations for operations, storage, and packaging, and conduct promotion plans and sales predictions. Most consumers plan and spend during holidays or annual events. Offering promotions during such times can stimulate purchases.
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The advantage of seasonal products is that they can be predicted, and preparations can be made in advance. Without specific plans, negative outcomes such as carryovers, stockouts, and customer dissatisfaction may result.
Considerations for preparing for special periods include:
• Allocating more time as larger quantities need to be stocked.
• Exploring ways to reduce transportation costs through advanced preparations.
• Calculating the time needed for additional packaging tasks, such as bundling and adding gifts.
Integrating promotions to achieve target sales.
If sales are not accurately predicted, there is a risk of stockouts or overstock. Stockouts can lower customer satisfaction and brand trust. Additionally, one should pay attention to returns, as the quantity of returned items may increase with rising sales. Returns involve manual inspection and processing, causing significant delays in operations.
Predict the demand during peak seasons and prepare inventory in advance.
Balancing product supply and demand is challenging. Start by attempting basic predictions based on last year’s sales. Real-time monitoring of inventory throughout the entire logistics process is crucial for accurate sales. Coordination across all stages of the logistics process is necessary, especially for special periods. Conducting an inventory check before the special period allows confirmation of accurate inventory levels, preventing issues such as refund processing delays or shipment delays.
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Assign dedicated personnel and provide relevant training before an increase in workload due to a surge in sales. If order processing is slower than usual before a special period, it might be an opportune time to reevaluate work processes such as cutting, sorting, etc. Streamlining packaging and simplifying the packaging process can reduce overall costs and the difficulty of packaging tasks.
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Consider setting the order timing considering the safety stock. Setting safety stock is the most straightforward approach to minimizing the impact of unexpected events or delays in receipt.
Ensure customer satisfaction by managing the entire logistics process, from product selection and packaging to Last-Mile delivery.
Once a product leaves the logistics center after sorting and packaging, only Last-Mile delivery remains. Everyone expects the products they purchase to arrive when they want them. Even if a delivery company causes delays, consumers tend to express dissatisfaction to the seller.
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Therefore, it is advisable to identify the issues with the delivery company in advance and minimize delivery delays. If persistent problems are not resolved, consider looking for a new provider or utilizing dual services to complement each other.
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Additionally, understand the delivery company’s acceptance cutoff time and set order cutoff times accordingly. The cutoff time for courier acceptance may approach sooner than expected. This becomes a basis for determining when to end sales, affecting the sales period and should be reflected in order predictions.
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If consumers are encouraged to make quick purchases with differentiated benefits for faster buying, it can prevent delivery delays and increase sales.
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In case of delivery delays or accidents, notify consumers promptly and take follow-up measures to minimize dissatisfaction.
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Due to e-commerce laws, purchases made through e-commerce are legally guaranteed for returns. Therefore, it is necessary to prepare for increased workload in returns management, as discussed earlier.
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Ideally, process returned items promptly. However, in reality, considering the nature of sales operations, this may be delayed. Nevertheless, confirming and categorizing returned items are critical processes. Items with a short shelf life may deteriorate by the time they are resold, and if other items are left unattended for too long, they may become excess inventory unrelated to the season.
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For efficient processing of returned items, establish clear criteria for disposal, acceptance, and suspension based on the condition of the product. While it may be considered a subjective area due to manual processing, prioritizing swift processing is essential for speedy operations.
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In conclusion, effective management of logistics during special periods requires strategic planning, preparation, and continuous monitoring. A detailed understanding of the product trends, early preparation, and real-time monitoring of inventory are key elements in ensuring a successful logistics operation during these peak times.
Reference
DCL Logistics: Holiday Checklist for Ecommerce Sellers