Dear partners and future partners!
Let’s be honest: for those of us working in logistics and commerce, the Advent season is less about waiting and much more about taking action. The year-end is a peak period, filled with countless tasks to solve and unexpected situations on top of them. In this post, we aim to help you with what we can do to prepare for the final push.
Increasing Demand and Shipping Requirements as Year-End Approaches
November and December are peak trading periods in most industries. Consumption rises as shoppers prepare for the holidays, year-end closures, and the new year. The increase in demand affects not only the retail sector but also manufacturers, suppliers, and, of course, logistics providers. Everyone wants to replenish their inventory in a timely manner and receive their goods. The efficiency of logistics has perhaps the most direct impact during this time on the rapid market availability of goods, customer satisfaction, and ultimately the competitiveness of companies.
Which Industries are the Most Critical at Year-End?
Different industries, whether it be pharmaceuticals, food, electronics, or automotive, have specific challenges and demands that influence logistics. Each deals with different matters, yet each has its own unique expectations regarding shipping, warehousing, and logistics. What are these challenges?
Let’s take the pharmaceutical industry as the first example. For medical products, strict cold chain management and precise traceability are essential, and delays are out of the question during peak periods, as improper shipping or delays can be a matter of life and death. Then there’s the food industry, where fast and controlled shipping is vital for maintaining freshness. The electronics and automotive industries are also critical due to the need for continuous production.
Year-end logistics strategies pose challenges not only for logistics companies but also affect the entire industry ecosystem. They impact production processes, inventory management, and the maintenance of customer relationships. It is important for all stakeholders to carefully plan their year-end activities to ensure a seamless and efficient supply chain!
Year-End Logistics Strategies
What should we pay attention to at year-end? Everyone is trying to meet demands amidst more challenging conditions. During this time, chaos can easily take over, leading to even greater disruption. It’s worthwhile to build a strategy that can help not only now but in the future as well! So, what should be included in a good logistics strategy? Below we share 10+1 tips on how to effectively plan logistics operations, considering various industry requirements.
Check Inventory! Before the year ends, it’s wise to thoroughly assess your inventory to see how much product is available and how many additional orders are needed to meet demand.
Request Forecasts! Communicate with clients about expected demand and ask them to share their forecasts! This helps ensure the right amount of stock and allows you to prepare for any potential shipments.
How Can You Ship? Consider different shipping methods (air, sea, road, rail) since the usual method may not be the best during peak times. Also, anticipate if the carrier will stop at year-end or continue shipping through the holidays.
Don’t Leave Everything to the Last Minute! Be sure to coordinate with your clients and subcontractors before the holidays, and if possible, organize everything now! It’s wise to secure your shipments for the first week of January to avoid stress. Unfortunately, you may need to look for alternatives, but if everything is arranged on time, you won’t have to worry about urgent tasks after holiday shutdowns!
Communicate Constantly! Maintain ongoing contact with suppliers and partners to have up-to-date information about shipping options and potential delays.
Consider Inventory and Shipments! Inform partners about available stock and demands so they can prepare accordingly. It’s good to ask the following questions: Do you need goods during the holidays? Do you need goods delivered by January 1st? What will be needed after the holidays?
Know Your Limits! Always be aware of your capacity and never take on jobs that you might not be able to handle!
Always Pay Attention to Opening Hours! Many companies change their hours during the holidays, so be sure to check or ask them! Unfortunately, it’s often the case that delayed shipments can only be delivered in the following year, which can be inconvenient for several reasons.
Be Flexible! Be ready for possible changes and continuously check shipping deadlines. Companies must be flexible in handling unexpected situations.
Check Closing Records! At year-end, ensure the accurate completion of closing records! Check the status of shipments and financial records to avoid any backlogs!
A Little Extra!
- Gather Feedback! Request feedback from clients regarding shipping services and experiences! This helps in planning for the next year and improving services. You can do this personally or just send out an email.
Now it’s up to us to incorporate these best practices into our plans for the next year! What do you think about this? Are you considering implementing them? We are eagerly waiting for your feedback in the comments section or at info@incon-logistic.hu!
And if you are looking for a logistics provider, feel free to reach out to us through the following methods!