Prep for Peak has already started: are you ready?

At a time of year when most of us are focused more on hanging out at the beach than hanging stockings by the chimney with care, it can be difficult for retailers and others in seasonal businesses to twist their minds around the need for holiday planning and getting ready for Peak. But experts say the earlier you plan, the better the outcome.

The holidays are unlike any other time of the year in retailing. It’s where bottom lines become black or red - and for retailers, the blitz of promotional messaging from every competitor makes it challenging for a brand to stand out.

Whether you’re a brand new business or you’ve been around for decades, planning for and managing inventory storage and distribution can always be improved. Here are seven ways brands can prosper during the holiday rush.

1. Plan staffing strategies by the Fall

Most employees want to take some time off during the holidays. That becomes a problem if all requests come through at once. Start asking team members about holiday availability no later than mid-October. Create a rotating schedule to ensure fair holiday hours for everyone. Identify sources of short-term labor to fill any gaps. Consider incentives for workers who put in extra time.

2. Forecast demand

Artificial Intelligence has been a boon for demand forecasting. Commercial software tools now integrate data from dozens of internal and third-party sources and apply sophisticated algorithms that create forecasts based on historical patterns, logistical variables, and even social media trends. Accurate demand forecasting is key to avoiding stockouts and overstocks. It also helps sellers strengthen supplier relationships by communicating needs more accurately and reducing waste at every stage.

3. Time holiday promotions & communications with care

While many of us groan upon receiving the first holiday promotions in August, getting out in front of the Black Friday rush can drive momentum. Prospecting and sales funnels are often thought of as strictly a B-to-B process, but you can absolutely use the same model for DTC (Direct to Consumer). Drip marketing campaigns send messages at carefully timed intervals or when triggered by customer actions. They educate and engage consumers while moving them along the sales funnel through a series of messages that are relevant to their stage in the buying process. Messaging should be carefully curated. Consider offering special discounts to “early bird” customers and stress the value of placing orders in advance to avoid stockouts.

4. Establish metrics that matter

Management guru Peter Drucker’s observation that “what gets measured gets improved” has never been truer. Marketing analytics enable campaigns to be managed and fine-tuned with precision. Sales histories are useful in predicting future performance. Other measurements like customer service kudos or complaints, chargebacks and returns can alert sellers to problems before they become crises. Choose a limited number of KPIs, set goals for improvement, communicate them to employees and supply chain partners, and monitor them constantly.

5. Think strategically about your logistics and warehouse needs

While the record warehouse space shortages from the post-COVID period have eased, space can be tight and logistics labor shortages persist. Partnering with a small 3PL who may only have one or two locations, or who doesn’t have the ability to invest in the resources you need should be on your checklist of considerations. Partnering with larger and established 3PLs and flexible warehousing fulfillment firms can make temporary space available without the burden of long-term contracts.

6. Prepare for returns

Tempting as it is to take a deep breath once the last holiday shipments go out the door, many retailers are just as busy in January as they were in November. Processing returns can be a chore, but managing them successfully is an important facet of customer satisfaction. Factor that into logistics planning. Good customer service translates into positive reviews and can often have a make-or-break influence on buying decisions.

7. Be flexible

Continuously monitoring KPIs enables brands to make swift adjustments during a fast-paced and dynamic season. Frequent communication enhances relationships with suppliers and logistics partners and enables all parties to better accommodate surprises. At the same time, unexpected events like weather delays or supply chain disruptions require sellers to have backup plans. Make sure your partners are ready to implement actions or ideas that minimize any negative impact.

If you’re not sure if your current warehouse is ready to meet this moment, or you’re looking for new storage locations, take a look at our 10-point checklist that provides the right questions to ask when you’re exploring new warehousing opportunities.