《Saddle Creek:2023年假日季订单履约终极指南(英文版)(10页).pdf》由会员分享,可在线阅读,更多相关《Saddle Creek:2023年假日季订单履约终极指南(英文版)(10页).pdf(10页珍藏版)》请在三个皮匠报告上搜索。
1、THE ULTIMATE GUIDE TOHoliday Order Fulfillment2Holiday shoppers spent a record$936.3 billion in stores and online during the 2022 peak season(November-December)up 5.3%year over year,according to the National Retail Federation.Online sales rose 3.5%to$211.7 billion,according to Adobe Analytics.Early
2、projections for Holiday 2023 call for an increase of 4.5%YoY to$1.238 trillion.Clearly holiday shoppers love playing Santa,but they need help from retailers and brands to get those highly anticipated gifts under the tree in time.Order fulfillment operations play a critical role in this process.To he
3、lp your fulfillment team deliver the magic,weve gathered insights from a few of the peak season experts at Saddle Creek Logistics Services.3Holiday Order FulfillmentTHE ULTIMATE GUIDE TOMany consumers shopped early in 2022.In fact,according to a survey by McKinsey&Co.,56%of US consumers had already
4、started their holiday shopping by October.It is likely that trend will continue this year.To make sure youre ready when your customers are,start strategic and tactical planning well in advance of the holiday season,advises Brian Mattingly,vice president of operations at Saddle Creek Logistics Servic
5、es.Establish projections for peak season sales volume as early as possible.To ensure accurate forecasting,look at last years data trends and make use of surveys and market analysis.Getting a handle on projected order volume will allow you and your logistics partner to plan better for space and staff
6、ing,material handling equipment,packaging,shipping,and returns.Coordinate with your marketing team on promotional activity and get a jumpstart on the holiday season,if possible.“Running promotions earlier can help to spread out holiday volume and make it more manageable from both a labor and shippin
7、g standpoint,”he points out.1“Running promotions earlier can help to spread out holiday volume and make it more manageable from both a labor and shipping standpoint.”BRIAN MATTINGLYVice President of Operations,Saddle Creek Logistics ServicesPlan Ahead4When designing a fulfillment solution,its import
8、ant to keep your peak sales volume in mind.Your usual volume might be 10,000 orders a day,but what will you do when sales spike to 90,000?“The best solutions can scale quickly and easily.Consider optimizing outbound SKUs by velocity or setting up work cells for peak season promotions,for example,”ex
9、plains Ben Coppolo,director of solutions development at Saddle Creek.“Look for opportunities to create efficiencies and minimize touches for put-away,picking,and packaging.”2“The best solutions can scale quickly and easily.Consider optimizing outbound SKUs by velocity or setting up work cells for pe
10、ak season promotions.BEN COPPOLODirector of Solutions Development,Saddle Creek Logistics ServicesDesign for ScalabilityOf course,there will always be surprises.Make sure to put contingency plans in place for everything from major weather events to product placement in a viral TikTok.Holiday Order Fu
11、lfillmentTHE ULTIMATE GUIDE TO571%of retailers cited labor shortages as a concern for the 2022 peak seasonFinding workers is a perennial problem for holiday fulfillment operations.In fact,71%of retailers cited labor shortages as a concern for the 2022 peak season.To mitigate labor issues this year,o
12、rganize additional support well in advance and provide sufficient training and cross-training,so associates in all areas can hit the ground running and offer excellent service.Arrange to have key people(especially IT)on call throughout the season and minimize the use of vacation time.Be prepared to
13、roll up your sleeves and work alongside employees during significant spikes in order volume,Coppolo recommends.To help keep employees engaged and prevent burnout,set performance goals at the beginning of the season.“Make the goals measurable and attainable and reward your team with gift certificates
14、 or a barbeque when they reach them,”Coppolo suggests.Seasonal peaks can provide an excellent short-term opportunity to give qualified employees more responsibility or leadership roles to help determine if they are ready for advancement.3Lock in LaborHoliday Order FulfillmentTHE ULTIMATE GUIDE TO6Re
15、think workflow strategies for peak optimization.Processes for receiving,replenishment,inventory slotting,and pack out should be re-evaluated and mapped for maximum efficiency and improved service levels.Move fast sellers closer to pack out and combine items that tend to sell together to the same zon
16、e.Using lean methodologies,look for ways to reduce wastes such as unnecessary touches,transportation,and waiting.Order batching and smart wave rules can streamline order picking.5Optimize Your Processes“For larger backorder releases,you may be able to cross-dock inventory when it arrives and send it
17、 straight to packing stations,so you can process all the orders together in one run.BRIAN MATTINGLYVice President of Operations,Saddle Creek Logistics ServicesHoliday Order FulfillmentTHE ULTIMATE GUIDE TO7Systems-based planning plays a vital role in successful holiday fulfillment.Be sure to evaluat
18、e the effectiveness of your current systems and on-call support,says Steve Congro,Saddle Creeks senior director of systems.Automated load-testing tools can measure the speed,response time,reliability and scalability of your systems under simulated load to make sure they are capable of handling incre
19、ased volume.If you dont have automated load-testing capabilities,Congro suggests holding a flash sale in advance of peak season.“Offering a deep discount for a few hours can force a heavy load,so you can see if your systems are up to the challenges ahead,”he explains.“Its not the same as a true load
20、 test,but it may be the next best thing.”Get third-party partners involved in the process and find creative ways to load test their systems as well.Its also wise to perform drills to test on-call processes for tech support to ensure issues can be handled in minutes,not hours.Congro recommends comple
21、ting any configuration or code changes well ahead of the holidays and establishing a code-freeze date on or around Nov.1,so you can lock down systems to ensure stability.6Test Information Systems“Offering a deep discount for a few hours can force a heavy load,so you can see if your systems are up to
22、 the challenges ahead.STEVE CONGROSenior Director of Systems,Saddle Creek Logistics ServicesHoliday Order FulfillmentTHE ULTIMATE GUIDE TO8Rising parcel rates and peak surcharges are inevitable,but advance planning can help to mitigate their impact.“If youre not currently using a multi-carrier strat
23、egy,this would be a good time to start diversifying your carrier mix,”says Megan Rudolph,Saddle Creeks senior director of parcel operations.Identify your parcel needs now and work proactively with carriers on forecasted volumes and service needs.“Once we enter peak,carriers will be unlikely to suppo
24、rt last-minute changes,and back-up options will be limited,”Rudolph says.If you use multiple distribution centers,analyze your shipment patterns to ensure that inventory is in the right location in order to minimize shipping costs and delivery times.Make sure youre aware of carrier cut-offs,service
25、level options,pick-up times and holiday delivery guarantees.Understanding these details is essential in order to set and meet customer expectations.Establish your shipping calendar well in advance,and let your customers know your cut-off for holiday deliveries.“Many companies are upgrading to guaran
26、teed-time delivery services to help minimize risk,but,of course,that adds cost,”Rudolph notes.7Approach Parcel Proactively“If youre not currently using a multi-carrier strategy,this would be a good time to start diversifying your carrier mix.”MEGAN RUDOLPHSenior Director of Parcel Operations,Saddle
27、Creek Logistics ServicesWhen having planning discussions with your parcel carriers or logistics partners,be prepared to share the following information:Projected growth over 2022 volume Anticipated average daily volume for November and December 2023 Commonly used package sizes/dimensions Any plans f
28、or new item introductions with different product characteristics Any planned change in service levels or delivery options (i.e.,in-store pick-up,same-day delivery,free returns)Requirements for weekend service,if applicable Holiday promotion scheduleHoliday Order FulfillmentTHE ULTIMATE GUIDE TO9On a
29、verage,the retail rate of returns for the 2022 holiday season was 17.9%,according to the National Retail Federation,while online return rates were 16.5%.To compound the problem,84%of shoppers expect online retailers to offer a free return option,according to a UPS survey.That helps to explain why th
30、e cost of returns is increasing.The average holiday return now costs up to two-thirds of the original price paid for the item.To help mitigate the cost of processing ecommerce returns,60%of retailers are changing their returns policies,a recent survey shows.The most frequent change?Adding shipping a
31、nd/or restocking fees.8Count on ReturnsWhile it is advisable to find ways to minimize the need for reverse logistics,high holiday return volume is inevitable.To smooth the reverse logistics process,clearly define your return policy and explain it on your company website,packing slips,order confirmat
32、ions and other communications.Enclose return labels with shipments to make the process hassle-free.“Returns processing can be very labor intensive and often requires more experienced employees with strong decision-making skills,so youll need to factor that into your staffing plans,”Coppolo says.“Pla
33、n for additional space as well.”Peak season planning continues to increase in complexity,but,with careful planning,you can survive and thrive in Holiday 2023.Holiday Order FulfillmentTHE ULTIMATE GUIDE TO 3010 Saddle Creek Road Lakeland,FL 33801863-665-0966 Corporate888-878-1177 Toll Free Looking fo
34、r an experienced peak season partner?At Saddle Creek,we support many leading retailers and brands during peak season and all year round.With scalable space,flexible staffing,advanced technology,proven processes,and established relationships with suppliers and carriers,were ready to help you accommodate increased holiday volume.