Good planning is essential for a successful peak season
Outsourcing your logistical operations to a Fulfilment house has both pros and cons, so it is important to consider the decision carefully. Scalability and efficiencies of cost are probably the two main advantages of using a Fulfilment house, especially during peak season. A business that is scalable will effectively manage the changing demands and needs of customers. During peak season you will need to be able to scale up very quickly, but exactly when and by how much can be difficult to predict. Under scale and you not only risk your ability to maximise a growth opportunity, but you also risk your reputation. Similarly, you will need to scale down quickly when demand drops, otherwise you will eat into your profit margins. Flexible scaling is key to a successful and profitable peak season.
Firstly, will you have enough Customer Support staff to answer the increased number of enquiries timely and efficiently? If not, it could negatively impact your business and reputation with a possible loss of sales. Will you have enough storage space and trained staff to take receipt of an increased amount of stock? This is a critical area where small mistakes can have a huge impact on your bottom line and ability to meet demand. Do you have enough space to store your seasonal stock requirements? How about an increasing stock inventory for peak season, can you manage the logistical challenge of scaling inventory quickly and efficiently? Do you have the space to buy in bulk prior to peak season? Stock scarcity can be an issue at certain times of the year, you may need to avoid costly “out of stock” situations. Another thing to consider is packaging. This can be very bulky to store; will you have enough space, so you are not constantly ordering more or even worse running out? Finally, will your shippers have the capacity to cope with peak season? Do they collect later to allow you more time to process orders? Do you have back up carrier solutions if anything goes wrong?
If you are unsure of any of the above, then it may be a good idea to get in contact with PHL to explore the advantages of outsourcing. We are the experts in resource management and have robust contingency plans in place to respond to the peaks and troughs of seasonality. We are more than happy to offer commitment free advice and costs, so get in touch today to make sure your business is “Peak Season” proof.