Meet 2022’s seasonal retail rush with a strategic shipping strategy
While there are several months until most shoppers will start thinking about holiday purchases, retailers, retail vendors and ecommerce businesses know it’s never too early to start planning for 4Q sales. But with everything currently happening in the market — from economic conditions to lockdowns happening oversees — planning for this year’s holiday season may be more challenging than shippers had hoped.
Navigate the complexities of holiday shipping by building a strategy that uses data and market insights to find solutions that get your freight delivered on time.
Learn from the past
A smooth holiday season starts with analyzing past performance. Learning what’s gone right – and wrong – in previous years (and even in 2022 so far) can make it easier to build a plan that meets your goals. Review shipping data to see how you performed in terms of inventory levels, delivery times, returns processing, claims and other key performance indicators that matter to your business.
The more you know about past successes and failures, the easier it is to know which parts of your shipping strategy may need changes. This insight can lead to decisions around procurement, warehouse locations, transportation modes, and the carriers you rely on to ship your freight.
Suggested Read: Using Data to Make Logistics Decisions
Communicate any new requirements
Along with knowing what to adjust from previous strategies, you’ll also need to understand what’s changing this year and communicate it with your transportation partners. Are products going to be displayed in a new location like an endcap or point-of-purchase display? Are there new items to create plans for? Has your target market shifted in geographic location?
Knowing all your requirements is essential for building an approach that balances efficiency and cost. Everything from changing warehouse locations to creating new SOPs may need to be done to help you have a successful holiday season.
Looking for a new transportation provider for your holiday freight? Learn what to look for in a full truckload provider and how to find an expedite carrier.
Set appropriate delivery expectations
Whether you’re an ecommerce business, ship to DC or ship to the store, delivery timing can make or break your revenue goals. And since holidays come with built-in deadlines, being clear about timelines and expectations is especially critical when planning for this time.
Here are upcoming holidays and the dates they’ll be observed this year:
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Halloween. Monday, Oct. 31
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Thanksgiving. Thursday, Nov. 24
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Day after Thanksgiving (Black Friday). Friday, Nov. 25
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Hanukkah. Sunday, Dec. 18 – Monday, Dec. 26
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Christmas Eve. Saturday, Dec. 24
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Christmas Day. Sunday, Dec. 25
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Kwanzaa. Monday, Dec. 26 – Sunday, Jan. 1, 2023
Each retailer will have different requirements for shipments around those holidays, and warehouses may have deadlines to consider as well. Knowing your specific deadlines and proactively communicating those dates and times with your transportation provider reduces the risk of missed or late deliveries — and the costly fines they can cause.
If you’re shipping to a major retailer, consider delivery windows, the appointment process and transit time when setting pickup dates. By providing and understanding your lead time requirements, your logistics provider can vet the appropriate mode for your shipment. Working with a retail logistics expert can make it easier to meet your targets and avoid penalties from compliance issues.
Know how you’ll handle returns
Efficient reverse logistics processes bring benefits like decreased costs and improved customer satisfaction, but the increased volumes often seen after the holiday season can be taxing for any supply chain. This year especially — as many companies face issues with too much inventory and rising fuel costs — it’s important to know how returns will be handled so you can be prepared.
Depending on your current inventory levels, historic return volumes and available warehouse space for the remainder of the year, you may need to adjust your policies to ensure you can handle the volume and costs associated with product returns. For example, you could shorten the amount of time buyers have to send items back or even just refund money rather than accepting returns.
Create contingency plans to overcome disruptions
The last few years have made it clear that planning for the unexpected is essential for keeping freight on schedule. While potential roadblocks like weather delays should be prepared for every year, 2022 could bring additional disruptions to consider in your plans. Possible risks like delayed international freight and limited warehouse space should be talked through up front, so your shipping strategy takes them into consideration.
For some shippers, this may mean drastically changing how you ship holiday freight. It may be best to use different transportation modes, move timelines to ship freight earlier than normal, or bring international freight in through new ports. Being open to new methods could help you meet your performance metrics and keep your customers satisfied.
How ArcBest helps you deliver on your promises
As a fully integrated logistics provider, ArcBest is uniquely positioned to help you implement effective solutions for your holiday freight. Whether you need to shift to an alternative shipping option, implement new technology to create efficiencies, or redesign your supply chain to better accommodate increased orders, we’ll partner with you to evaluate risks and recommend appropriate solutions.
