Experts say that most companies make more than 20 percent of their annual revenue during the peak holiday season- but when service failures occur during peak season, it can cost you a great amount in terms of delayed in customer shipments as well as stock-outs due to poor inventory management.
How retailers can address supply chain challenges?
Stock-outs put a great impact on your brand reputation and future business activities. Forcing your customers to buy a product – which is out of stock in your warehouse – from a competitor diminishes their faithfulness. The other challenge comes up when consumers who buy online and return the item in-store, called Omni-Channel consumers, put the pressure on retailers to have products both at the store and in the warehouse, in the right quantity and at the right time.
To address these challenges, retailers are trying modern distribution strategies that not only improve forecasts but also facilitate inventory movement across multiple shopping channels. Retailers may need the services of a third-party logistics provider on the basis of the distance between your store and the warehouse. Here are some tips that will help ensure good relations with your suppliers, 3PL provider, and customers:
1. Inform your 3PL vendor about new changes and purchase orders
As a retailer, you should keep constant communication with your third party logistics vendors and suppliers and inform them of any changes in purchase orders and keep them updated. For instance, informing them of advance shipping notices, or any other changes regarding receipt items, quantities, or dates on purchase orders, will give the 3PL provider enough time to prepare and deliver the item as per your needs.
2. Make room for flexibility with your carrier
You cannot always plan your project sales accurately using data from previous years. Make sure your 3PL provider takes the responsibility for last-minute, just-in-time deliveries to your store to avoid any stock-outs of certain items. To face such unforeseen incidents, you should develop a relationship with your 3PL vendor that allows for flexibility and can adequately handle last-minute changes.
3. Accurate Forecasting
Make realistic projections for order volumes and calls by hour, day, week or month in advance to ensure your orders are always available in the right quantities and at the right time and to give your 3PL provider enough time to prepare for it.
Final Thoughts
With these wonderful tips, you can get prepare for the peak holiday season and manage your inventory more efficiently. If you’re looking for 3PL warehousing services, look no further than Tenaxx Logistics. We have the space, services, modern equipment, and commitment to customer satisfaction needed to make your transition to the world of warehousing a smooth one. To know more about our warehousing services, contact us today.