Holiday Rush? How Third-Party Logistics Keeps Your Orders on Track

The holiday period is by far the busiest and most joyous time of the year for retailers around the world. Gifts are flying off the shelves, retailers are offering their largest discounts, and orders can increase dramatically from day to day. While this can be a thrilling time for most retailers, it can become overwhelming for retailers when a large portion of their time is spent making sure all their products reach customers by Christmas Day. Fortunately, 3PL providers offer solutions to this problem.

Using third party logistics may help all retailers, regardless of size, improve the way they operate during the hectic holiday season, as well as increase both their speed and customer satisfaction during this busy time.

The Holiday Season Challenge

During the holiday season, there is typically a large increase in the volume of inventory shipped out as well as an increase in courier and delivery service workload due to the holiday shopping season. This creates challenges for businesses even if they have been doing well during the rest of the year. Some of the issues faced by some businesses include:

• No space left in storage area for inventory to be received

• Longer time for product orders to be packed and shipped

• Incorrect or missing orders because of quick or time-constricted fulfillment

• No longer being able to sell out-of-stock items because of a lack of accurate inventory records

• A large number of customer inquiries asking, "Where is my order?"

Every business should strive to keep their customers happy and provide them with the products they want, especially during busy seasons when customer loyalty will greatly affect the success of a business.

How Third-Party Logistics Saves the Season

Vendors for third Party Logistics (3PL) manage critical elements of your company's ability to fulfill customer orders. These elements include accepting products from distributors, inventory storage, order picking and packaging, shipping, and sometimes even processing customer returns. They are specifically designed to process orders promptly and accurately and to allow flexibility of operation with growing holiday shopping demand.

Here’s how third-party logistics keeps your orders on track:

✔ Faster Fulfilment, Even with Surging Orders

Competitive warehousing and fulfillment companies use automated systems combined with experienced employees to process large numbers of orders. Rather than working through the evening in order to meet next-day shipping deadlines, you can utilise the professionalism of a 3PL vendor whose employees work this way every day, no matter how many more times than normal they must complete the same tasks.

✔ Real-Time Inventory Visibility

During the Christmas season, overselling is a nightmare. Third-party logistics providers generally integrate directly with your online store (website), so you will always know exactly how many items are left in stock. You will also know when to place another order for inventory before it is completely sold out.

✔ Better Shipping Options (and Better Prices)

Couriers are often much more expensive during peak seasons because of surcharges, and as such, 3PLs typically ship large quantities on a consistent basis throughout the year.  Because of this volume, 3PLs have access to rates from carriers that individual businesses would not be able to obtain, as well as faster delivery times.

Additionally, using a 3PL warehouses allows for your customers to receive deliveries sooner while providing your business with savings on every order shipped.

✔ More Space for Holiday Stock

During the holiday season, retailers tend to buy in large amounts new product collections, holiday gift baskets, and their best-selling lines of products. As more retailers are beginning to run their own warehouses, many owners find themselves with limited warehouse space during peak shopping seasons. With the help of 3PL storage and transportation solutions, retailers do not have to incur any costs associated with additional warehouse space during peak seasons.

✔ Reliable Returns Handling

One of the most common times for customers to return gifts is during the Christmas holiday shopping season. Instead of wasting valuable time sorting through returned merchandise to see what can be restocked in your warehouse inventory, a 3PL can take care of this for you, allowing you to get your product back in stock as quickly as possible.

Happier Holiday Shoppers

Customers who have an easy time tracking their orders and knowing when they’ll receive their orders will want to shop with you again. Third party logistics providers provide:

• Automatic tracking updates

• Clear delivery windows

• Fewer delays from professional packing and shipping.

Fewer WISMO (Where Is My Order?) emails mean you can spend more time on sales and customer service.

Providing good service during the holiday season creates a relationship of trust that will continue long after the holidays.

More Time for What You Do Best

• Outsourcing your logistics to third-party logistics removes the time-consuming activities of:

  • Producing shipping labels
  • Preparing packages for shipment
  • Scheduling transportation for shipments
  • Locating tracking numbers

  Instead of spending time on the logistics of your business, you can focus on the following activities that will help your company grow:

  ? Developing Holiday Marketing Campaigns

  ? Developing Gift Sets and Limited Edition Items

  ? Providing Better Customer Service

  ? Preparing for Next Year’s Performance

  Now, you can RELAX and ENJOY the busy period as well as simply make it through it.

  Essential Strategies for a Smooth 3PL Holiday Rush

  Your success depends on a bit of long preparation. Before peak season, it's important for a business to provide demand forecasting early to allow time for warehousing to plan cleanings and/or staff/space.

  • Provide accurate product information (weight, size, barcode, SKU) so your packing will be quicker.

  • Send inventory ahead so that when you have orders, you will be ready to ship.

  • Provide clear cut-off dates and advise customers when these will be.

  Be in constant contact with your 3PL partner throughout peak seasons—you're a team working towards the same goal. Building and maintaining relationships and communicating effectively will keep all moving in the same direction, regardless of how busy peak season becomes.