Point To Point

Peak seasons, such as holidays or special sales events, are periods when businesses typically experience significantly higher demand than usual. These seasons are often crucial in helping companies meet their annual revenue goals, and they require an efficient and robust supply chain to manage the increased load effectively.

The meteoric rise in e-commerce over the last several years has led to unprecedented retail sales. Unfortunately, it has also led to an unprecedented number of returns. It’s estimated that 30% of online orders are returned, as opposed to just under 9% for goods purchased from a brick & mortar retailer. Tracking these aftermarket activities can provide insight into your overall logistics management. Which is why shippers and suppliers alike need a sound reverse logistics plan.

The demand for final mile delivery and white glove delivery services is rapidly growing for large and heavy products that aren't suitable for parcel shipping. These types of residential deliveries generally require the use of two-man delivery teams. Pulling off a successful final mile delivery, however, will require planning and actions on behalf of the recipient. 

Over the past several years, two important challenges have developed for supply chains. First, the growth of online shopping has increased shipping volumes and demand for quick deliveries to consumers. Secondly, the driver shortage has strained freight capacity across multiple areas of the supply chain process.

Together, these challenges have forced shippers to rethink their warehousing and distribution services strategy. This is especially true for shippers that move mid to high volumes of freight across multiple markets.

To that point, look at Amazon's warehousing and distribution services model. Marketplace shippers (and increasingly Amazon's own line of products) sell to customers throughout North America and around the globe. To keep customer prices under control, Amazon understands the value in local and regional warehousing and distribution services.

With approximately 75 fulfillment centers and 25 sortation centers in the U.S. alone, the company's supply chain is structured to reduce final mile transit times and costs. This structure allows sellers to stage inventory across multiple key markets rather than having to ship individual orders hundreds or even thousands of miles.

Well, that warehousing and distribution services strategy is great for Amazon's sellers, but what about B2B and B2C shippers that sell and move products independently? It goes without saying that most businesses lack the capital to build a supply chain infrastructure on the scale of Amazon. Nonetheless, local and regional fulfillment solutions are increasingly becoming available to shippers to meet the growing demands of today's supply chain.

One of the most challenging aspects of the holiday season, particularly for retail shipping, can be the aftermath. Many purchases are often returned due to damages, wrong sizes and a variety of other reasons. To recoup losses, businesses are often able to ship the returned goods back to their suppliers for a refund or rebate.

As the busiest time of year for retailers, the holiday season can be a roller coaster of preparation and execution across all areas of business. From gauging the latest shopping trends to staffing temporary employees, there are several moving pieces that need to work together to succeed. One part of the puzzle that certainly can't be overlooked is inventory and supply chain planning.

One of the biggest challenges of running a retail supply chain is inventory replenishment. For many operations, high volume products need to be replenished on short notice during demand surges. Also referred to as just-in-time inventory replenishment, such surges can occur during predictable periods (i.e., holidays and peak seasons) or on a regular basis for a company that steadily moves a product. 

Partnering for Measurable Supply Chain Improvements

Reducing Tons Of Supply Chain Waste

SalonCentric, a nationwide wholesale salon and beauty supply distributor, wanted to find a way to reduce its impact on the environment while also minimizing its supply chain costs.

One area of its supply chain that SalonCentric saw an opportunity to make a difference with was the company's use of traditional cardboard boxes for shipping. Corrugate boxes, a staple of most retail supply chains, are great for transportation. However, such containers have a short shelf life and quickly find themselves in landfills.

To address the problem, SalonCentric invested in reusable plastic tote bins. The use of the bins had an astounding positive impact on the company's environmental footprint. 

In this third and final part of our series on how you can reduce the likelihood of being hit by Must Arrive By Date (MABD) fines and delivery chargebacks, we will discuss the final key to making a successful journey to retail store shelves: your carrier.