How to Navigate Logistics Challenges During Festive Season Sale

Black Friday and Christmas are around the corner, the busiest and most chaotic time for logistics businesses. Know which last-mile delivery strategies can help ensure smoother operations.

‘Tis the season of Sales and Festivities!

With Thanksgiving, Black Friday sales, and Christmas all around the corner, there is already a frenzy among consumers, retailers/manufacturers and logistics companies. The boom in e-commerce platforms allows consumers to shop until they drop from their couches. But for manufacturers and logistics, it’s the season of chaos and disorder due to the exponential amount of orders to fulfill and deliver.

Since the festive season is also the time for brands and companies to form lasting relationships with customers, seamless on-time delivery can help. Relying on last-mile delivery software helps businesses to attract more consumers with the promise of quicker deliveries.

It’s time to be the Secret Santa with last-mile delivery software.

Impact of Holiday Season Sale on Logistics

For end consumers, it’s the time for merry-making, encashing those coupons and making good use of the Black Friday sale to buy gifts for loved ones,

But the festive season is one of the most strenuous times for businesses, especially logistics. The increase in demand during the holiday season directly impacts logistics costs (Peak volumes during the holiday season often spike dramatically, reaching 10 to 20 times their normal size). Businesses often have to absorb these prices to attract and retain consumers. They offer free shipping or 1-2 day shipping, which puts a lot of pressure on logistics businesses.

Ultimately, it all boils down/ comes down to logistics companies as, in many cases, they are the ones responsible for delivering orders to the consumers. Some of the challenges faced are discussed below. At up to 50% of the total delivery cost, the last mile is both an opportunity and the biggest pain point in the delivery process. According to one study, firms that provide fast, convenient, and transparent deliveries will see a 59 per cent increase in sales. 

6 Logistics Challenges During Peak Sales Season

1. Increased Volume and Demand Fluctuation

There is a surge in orders across various e-commerce platforms. The festive season is always preceded by massive sale seasons such as Black Friday and Cyber Monday sales, which naturally result in spikes in order volumes. And without efficient logistics backing or infrastructure, delivering orders can soon become a nightmare.  

2. Increased Labour Demand

Hike in order volume and peak holiday season results in heightened demand for labour, which is matched with their shortage. Another reason for delivery delays. Additionally, companies might have to hire seasonal employees to fulfil orders, which adds to their operational expenses.( Target hires 130,000 holiday workers)

3. Tight Delivery Timelines

Customers shopping for gifts during Christmas or promotional sales expect quicker delivery times. Meeting tight delivery deadlines strain logistics companies, leaving them unprepared to handle peak demand season.

4. Delayed Deliveries

Meeting delivery deadlines become more critical during Black Friday sales as customers expect fast service. And if deliveries are delayed, it can lead to serious dissatisfaction. With high-end demand during the festive season, logistics companies often battle with:

• Slow order processing
• Manual order assigning and tracking
• Shortage of manforce

5. Customer Communication

Shoppers making purchases during the sale on e-commerce platforms naturally expect constant communication and transparency in their orders. They expect frequent and real-time updates about the status of their order.

6. Resource Allocation

Effective resource planning is difficult during Black Friday sales due to the massive amount of orders, which are difficult to forecast. In addition to ensuring delivery drivers are prepared for a demanding workload, it often gets tough to determine the best ratio of drivers to vehicles and dispatch orders.

Last-Mile Delivery Software: A Game-Changer

Dependence on technology during such critical times can be grace-saving for businesses. Dispatchers can trust TrackoMile, a last-mile delivery software with closed eyes, to fearlessly automate and dispatch orders on time. Logistics companies can leverage last-mile delivery tools to ease the pressure of holiday season sales.

Let’s unwrap the gift of TrackoMile.

Automated Communication with Customers with ETAs and ePODs

Consumers shopping during the festive seasons are more likely to be emotionally invested in their purchases as, most likely, these gifts are meant for their loved ones. This reason is enough to ensure a positive customer experience, and providing them with end-to-end visibility of their order is the best way to do it.

With TrackoMile, send your end consumers real-time tracking links through SMS. Besides dispatchers/manufacturers, retailers and customers too can track the order status in real-time. To further enhance the visibility and communication channel, TrackoMile offers multiple formats of ePOD- OTP, barcode scanning, and e-signature. Adding convenience for customers.

Out celebrating, but there is a delivery agent at the doorsteps? No worries, they share OPT over the call. This effectively eliminates second-attempt deliveries, which are taxing for companies and ensures on-time deliveries.

Partner with Automation to Ramp up the Delivery Process

Not all last-minute deliveries are the same. Segregate orders based on urgency and prioritise accordingly. Consider factors such as the nature of the order- is it something that might get spoiled soon, customer requirements and delivery time window.

But dispatchers don’t have to do it manually and bear the price of errors. Rather, delegate this task to a trusted employee, aka last-mile delivery software. The system automatically pairs orders with available delivery drivers after considering multiple factors through its dynamic dispatch management solution.

Also, the software is well equipped with outstanding route optimisation software – the biggest saviour this festive season. The solution is a must to deal with a hike in order demands, tight delivery schedules and labour shortage. The solution suggests the shortest and most efficient delivery route for the trip, along with stop sequencing. Reroute on the go in case of traffic congestion, which is common during the festive season.

Automation can significantly boost efficiency during high-demand periods.

Squeeze More Out of Existing Resources with Capacity Management

It is a norm for companies across to pump money into hiring seasonal employees and resources to match the festive chaos. But before you do that, it’s best to make the most out of the existing resources and drivers.

With the rider roster and capacity management feature of TrackoMile, speed up the “out for delivery” process. The rider roster helps dispatchers be informed of the available drivers, their shifts and more. This is a big help in optimising the delivery schedule for drivers.

The capacity management solutions automatically pair up the orders with the vehicles after considering the rule engine. It assigns carriers on the basis of factors such as

• Distance between fulfilment centre and delivery destination
• Vehicle capacity, size and dimensions
• Traffic conditions
• And 50 other custom rules

Be Well Prepared for the Festive Season’s Explosion

By studying the previous data, both manufacturers and logistics partners can figure out the contingency plans needed to handle the order explosion during the festive season sales. In the past, businesses have recorded massive orders during Black Friday sales, Cyber Monday sales, Thanksgiving, and Christmas.

Receive analytical reports containing real-time data as well as have access to previous data. This helps to identify patterns, analyse performance, identify areas of improvement and apply effective strategies.

Integration with Other Systems

Having an agile last-mile delivery platform for logistics automation and delivery planning, like TrackoMile can be the reason logistics companies are giving thanks this Thanksgiving. The software is empowering businesses with eagle-eye visibility of their delivery operations.

With effortless integrations across existing ERP/CRM/WMS/OMS systems can help businesses scale and achieve:

• 23% reduction in Last-Mile delivery costs
• 12% reduction in Middle Mile costs
• 45% reduction in customer onboarding time
• 28% reduction in customer complaints

Reduce Last-mile Delivery Costs with PUDO

PUDO can be the Secret Santa for both retailers and logistics companies. Since it utilises smart lockers for orders, PUDO points offer a flexible and customer-centric approach to last-mile delivery, making them particularly valuable during times of high demand, such as crazy holiday sales. Integrating PUDO into a comprehensive logistics strategy can help improve efficiency, reduce costs, and enhance the overall customer experience.

The Gift of the Season

More than half of retailers and manufacturers are keen on offering same day or 1-2 day delivery options to consumers during the holiday season. Agreed, this is an effective method of attracting consumers, but what about the part of fulfilling that promise?

The last-mile logistics sector has to cleverly navigate through many sales season challenges to reach the consumers’ doorsteps on time. But a little bit of help never hurts. Last mile delivery software can be the crocin to the headaches of dispatchers.

TrackoMile is a last-mile delivery software that automates and optimises the delivery process, minimising the risk of delays, enhancing customer satisfaction and helping with proper resource utilisation.

Schedule a demo now!