As the calendar inches closer to the end of the year, businesses across the globe brace themselves for the peak period from October to January. Whether it’s the holiday season, year-end inventory counts, or increased consumer demand, this time of year can put immense pressure on supply chains.
If your business relies on the timely delivery of goods, you know that preparing for the peak period is essential to meet customer expectations and maintain your competitive edge.
Important Dates to Remember
The first step in getting ready for the peak period is knowing the key dates that will impact your supply chain:
Holidays: Take into account public holidays in your region and in the regions where your suppliers and manufacturers are located. Christmas and Chinese New Year (25 December 2023, and 9-15 February 2024) are the biggest stressors during this time and usually disrupt operations and delay shipments.
Sales and Promotions: If you run special promotions or participate in major shopping events like Black Friday and Cyber Monday (24 November & 27 November 2023), plan accordingly for the spike in orders.
Inventory Counts: Year-end inventory counts are common, and they can affect your production schedules. Coordinate with your suppliers to minimise disruptions.
Last Shipping Dates: Different carriers have cutoff dates for guaranteed delivery before major holidays. Be aware of these dates to avoid disappointments.
Adjusting Your ‘Just in Time Shipping’ Strategy
For many businesses, just-in-time (JIT) shipping has been a popular strategy to reduce inventory carrying costs. However, during the peak period, it’s wise to adjust this strategy. Here’s how:
Buffer Inventory: Build up a buffer stock to ensure you have enough products to meet demand even if there are disruptions in your supply chain.
Diversify Suppliers: Relying on a single supplier can be risky during peak periods. Consider diversifying your supplier base to spread risk.
Planning Ahead
Effective planning is the cornerstone of peak period preparedness:
Forecast Demand: Analyse historical data to predict demand accurately. Collaborate with your sales and marketing teams to refine your forecasts.
Staffing: Ensure you have enough staff to handle increased orders and customer inquiries during busy times. Temporary staff can be valuable additions.
Communication: Keep lines of communication open with suppliers, manufacturers, and logistics partners. Regular updates and coordination are crucial.
Booking Freight Early
Whilst the transportation industry experiences high demand during the peak period, shipping lines are also taking out capacity during this period which can cause onflowing capacity issues. To secure your capacity and avoid price spikes, consider booking freight early:
Prioritise Shipments: Identify critical shipments and prioritise them for booking well in advance. This ensures that your most important products reach customers on time.
Freight Forwarder Partnership: Partnering with a reliable freight forwarder like Stockwell can give you access to capacity, competitive rates, and expert guidance on navigating the logistics challenges of the peak period.
Collaborating with Manufacturers and Suppliers
Your manufacturers and suppliers are key players in your supply chain. Here’s how to work with them effectively:
Closure Dates: Coordinate with your suppliers to know their holiday closure dates. This allows you to adjust your production schedules accordingly.
Last Shipping Dates: Work with your manufacturers to determine the last possible date to place orders for pre-holiday shipments. This helps you avoid supply shortages.
At Stockwell International, we’re here to assist you with your freight forwarding needs, making sure your goods reach their destination on time, every time.
Contact us today to learn more about how we can support your peak period logistics.
