The 2018 peak warehousing season flourished on the optimism in the market. We saw significant gains for businesses, and customers reaped the rewards. Unfortunately, experts do not necessarily believe the 2019 peak season will see the same results. Cautious optimism remains, and with even more considerable uncertainty in the market for 2019, supply chain leaders need to take stock of lessons learned.

What Went Wrong During the 2018 Peak Season?

The biggest problem in the 2018 peak warehousing season surfaced before the season even started. Tight capacity led to delays in order processing and shipping, and carriers launched multiple general rate increases (GRIs) to recoup costs and speed fulfillment and delivery, says Jeff Berman of Logistics Management. The uncertainty surrounding the U.S.-China tariff trade war created an opportunity for customers to make a final push for a strong season. Yet, in the weeks leading up to the 2019 trade war, the markets seemed even more uncertain with the suspicion of how they would be impacted by the election. Thankfully, retailers were able to push through the fears and obtain big wins from the market.

How Supply Chain Leaders Overcame the Obstacles

The lessons learned from 2018 teach us the basic principles of how companies can achieve success in the modern age. Supply chain leaders overcame the obstacles by focusing on the positive sentiment that resulted from more sales and how those benefits translated into improvements for the company. More loyalty among customers contributes to higher profitability, which in turn contributes to lower prices for customers. Of course, data and the application of information are at the root of it all.

What Shippers Need to Do to Avoid Problems This Year

The biggest lessons learned hinge on a critical component of supply chain management. Supply chain leaders need to maintain optimism in the face of uncertainty, and ensure optimum inventory management. They must prepare for growth, even when such growth appears to be less than expected. The latest fad may not even have risen yet, so it is a wise assumption to err on the side of continued growth and demand throughout the coming peak season.

A second step for avoiding problems this year focuses on the need to connect with customers. Companies need to think beyond the limits of both the virtual and physical worlds. They must apply data and offer it to customers, well before customers even realize what they want. The goal must be to successfully connect the dots for customers. Supply chain leaders must work together to give customers a truly immersive, seamless, omnichannel experience that continues regardless of peak season demands and constraints.

Plan for a Successful 2019 Peak Warehousing Season with the Right Partner

Supply chain leaders have an opportunity to excel in the 2019 peak season. They must consider the lessons of the past and plan for the best. Times remain uncertain, but if anything is consistent in the world of supply chain management, changing demand is at the forefront. Ensure your organization is ready for the upcoming season by reviewing your systems and requesting a consultation with Veridian now.