Top tips on how to handle the 2017 peak shipping season
The peak holiday shopping season is a make-or-break period for retailers, as consumers rush to stores and websites with gift lists in hand. Many companies make the bulk of their annual revenue in that hectic three- to four-week period from the day after Thanksgiving to Dec. 23, so the stakes are high for retailers, their carriers, and their logistics service providers (LSPs).
Botched execution can dent a company’s profit margin as well as its reputation. Atlanta-based transport and logistics giant UPS Inc. saw that happen in 2013 when the carrier drew sharp criticism for significant delivery delays after underestimating the last-minute surge in e-commerce orders that hit its network in the final days of the peak season. The company spent heavily to avoid that scenario in following years but watched its profit margins shrink in the 2016 peak as it struggled to handle a record 712 million packages.
So how do companies handle traffic surges without blowing their budgets for the rest of the year? DC Velocity asked some logistics service providers to share lessons learned from their experiences in 2016 and tell us what they would do differently in 2017.
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