Every year, peak season tests the limits of supply chains worldwide from Black Friday to Christmas Eve. As consumer expectations soar, companies must evolve their supply chain strategies to stay competitive. Here, we explore how organisations can leverage technology to meet the challenges ahead.
Today’s consumers, particularly younger generations, have redefined the meaning of convenience and consumer loyalty. Körber’s 2023 State of Shipping and Returns survey found that 90 per cent of respondents are less likely to buy from a brand again after a poor online shopping experience, while 29 per cent say they are increasingly willing to share a negative review online. These expectations are pushing retailers to unprecedented levels of agility.
A steep rise in expectations is happening alongside a revolution in the digital marketplace. Platforms like TikTok Shop are introducing new dimensions of virality to online shopping, further amplifying the pressure on supply chains. In this high-stakes arena, agility and innovation in warehouse operations are no longer optional – they’re essential for survival.
Forward-thinking organisations are distinguishing themselves through strategic investments in smart technology and setting new standards in customer service and operational efficiency.
The future of fulfilment: proximity, flexibility, and innovation
In response to these rising expectations, many companies are adopting a proximity strategy, moving products closer to the end customer. This approach is manifesting in two primary forms: micro-fulfilment centres and leveraging existing brick-and-mortar stores.
The debate between Buy Online Pick Up In Store (BOPIS) and micro-fulfilment strategies continues to evolve. While micro-fulfilment centres in urban areas present a compelling long-term solution, many retailers are finding their brick-and-mortar stores to be a viable mid-term alternative. However, the ultimate goal remains clear: doorstep delivery.
One thing for certain is that the future of retail lies in operational hybridity – stores that can seamlessly transition between traditional shopping and fulfilment centres will have the flexibility to meet consumers on their terms, wherever they may be.
Technology is also increasingly imperative, but a strong and reliable team of people remains essential to achieving new levels of efficiency. One innovative approach when it comes to engaging employees, is the gamification of warehouse management.
By introducing elements of game design into the work environment, companies can boost employee engagement and productivity. A recent report from Workhuman-Gallup reveal that gamification can decrease turnover and reduce absenteeism by an impressive 81 per cent, while also lowering the risk of quality defects by 41 per cent.
Moreover, the transition from legacy systems to more adaptable warehouse management software is accelerating in fulfilment strategies. The use of Autonomous Mobile Robots (AMRs) is also increasing in warehouses worldwide, not only reducing reliance on manual labour but also introducing unprecedented flexibility into operations.
AMRs are more affordable than traditional automation and easy to scale once in place, supporting either long-term growth or short-term seasonality.
Real-time Insights: the game changer
Creating meaningful connections between software solutions is crucial for building resilient and cost-effective supply chains. While supply chains have increasingly adopted planning platforms, execution and fulfilment often remain fragmented. The key to overcoming this challenge lies in the seamless integration of Order Management Systems – OMS, Warehouse Management Systems – WMS, and Transportation Management Systems – TMS.
This integration creates a unified ecosystem where each component of the supply chain communicates effectively. The result is a more agile operation, capable of rapid responses to disruptions and changes in demand. Whether adapting to sudden shifts in consumer behaviour or managing supply shortages, an integrated system provides the flexibility needed to maintain continuity while optimising costs.
One of the most significant advantages of connecting OMS, WMS, and TMS is the enhanced visibility and real-time insights they provide. An integrated systems addresses the common challenge of a lack of transparency and delayed information head on by leveraging data from across the supply chain in concert. This visibility enables quick, informed decision-making and helps identify potential issues before they escalate, resulting in smoother operations, improved cost-effectiveness, and enhanced customer satisfaction.
The integration of OMS, WMS, and TMS expands optimisation capabilities beyond traditional silos. In today’s global market, where demand fluctuates and supply chain disruptions can range from raw material shortages to blocked shipping canals, this flexibility is invaluable.
Mastering the final mile
The final mile of delivery often presents the most complex and cost-intensive challenges in the supply chain. Once again, the integration of OMS, WMS, and TMS ensures that this critical phase is optimised for both resilience and cost-effectiveness.
With detailed tracking and optimisation tools, companies can manage final mile deliveries with precision. This capability ensures timely and reliable delivery while controlling expenses. Moreover, it provides the added efficiency needed to react swiftly when something goes wrong – an important advantage in an era where customer expectations for fast, affordable delivery are at an all-time high.
As we navigate the challenges of labour shortages and evolving consumer expectations, the path to success in peak season management lies in embracing technological integration, leveraging real-time data, and maintaining the flexibility to meet customers where they are. Supply chain leaders who use these strategies will do more than just cope with peak season this year – they’ll also drive innovation and gain a competitive edge in the market.
Anthony Beavis, Managing Director ANZ at Körber Supply Chain Software
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