Experts believe the 2019 peak shopping season will fall short of 2018. However, changing customer behaviors, including the increased demand for more e-commerce deliveries thanks to Amazon’s rollout of free, next-day shipping for Amazon Prime members, could push the industry further than the last year. Meanwhile, most e-commerce packages are sent via parcel, and a traditional WMS cannot successfully manage a parcel-exclusive strategy. To stay competitive, supply chain leaders need to understand the value of robust WMS functions to maximize fulfillment as parcel demand increases.

Driving Forces of the Parcel Peak Season Spike

The parcel peak season spike stems from the increase in e-commerce shopping. Customers have grown accustomed to omnichannel shopping, and as retailers work to blend their channels, even brick-and-mortar stores take on an e-commerce role. Supply chain leaders must ensure their systems work together to share information and overcome obstacles, including labor uncertainty, a shaky economy, and the unexpected change in direction by the Federal Reserve earlier this month.

WMS Use Increases Warehousing and Transportation Efficiency

WMS functions are expanding at an exponential rate. While warehouses today deploy some level of automation, the value of automation in managing warehouse efficiency, scalability, and effectiveness will become paramount in 2020. As the 2019 holiday shopping season approaches, shippers need robust WMS functions to handle the complexities of warehouse and transportation management. Moreover, the rise in demand for more e-commerce deliveries will naturally lead to demand for smaller, more frequent activities within your warehouse and yard. As with any practical use of technology, metrics will also play a role in determining success, notes Supply Chain Brain. The 2019 peak season will likely see a surge in demand for parcel and small package deliveries at a higher rate than prior years.

Additional Benefits of Robust
WMS Functions During Peak Season

Deploying a robust WMS in advance of peak season offers other benefits that go well beyond warehousing and transportation efficiency. These include:

• Improved customer experience. As explained by 3PL Central, robust WMS functions during the peak season can enhance the customer experience. For example, by using a customer portal, your business-to-business (B2B) customers effectively self-service their needs.
• Better forecasting through the application of data to continuously improve. Since peak season is a significant undertaking for a supply chain, it generates a mountain of data. This data can be applied to enhance inventory management and ensure all orders picked are routed appropriately, using parcel or the applicable mode of transit.
• Enhanced traceability of shipments. During the holiday peak season, customers expect the shipper to provide line-item detail into shipment status, and robust WMS functions make this possible.

Tackle the Holidays Head-On With a Newer, More Effective WMS

While the jury is still out on projections for the 2019 peak shipping season, all shippers and supply chain leaders need to reconsider their WMS options seriously. As e-commerce continues to grow, more customers will look for improvements and faster parcel shipping, regardless of the package’s exact mode of transit. To ensure your systems are optimized and ready to handle the demand for the upcoming season, get started by requesting a consultation with Veridian online now.