The importance of logistics during the holiday season

The set of strategies designed to streamline the processes of production, distribution and consumption of goods at local and global level, becomes more complex when the arrival of the Christmas season is in sight, which as it is understood, expresses at the level of supply and demand a greater activity, since, in the imagination of consumers will be the idea of satisfying countless requests to be supplied by nothing more and nothing less, Santa Claus, who will be ready to deliver gifts to every home in the world.    

This is a time of the year that expresses the multiplication of consumption patterns and the vast majority of consumers require their products to arrive as quickly as possible, even waiting until the last moment to make their purchases. Contrary to expectations on the supply side, capacity may be reduced, significantly affecting the status of deliveries and supply. The growing online purchases that affect the delivery of products, the demands for free transportation by those who subscribe to this type of purchases, the use of outsourced transportation by those business or retail chains that must adjust to the growing demand and the tough competition that arises among those companies that work to offer better alternatives in terms of dispatch and delivery, translate a reality that imposes the need to create new strategies, if you want to increase surpluses.

First of all, in this period it is necessary to face the dynamics of the purchase-sale relationship, especially because, as we all know, everything happens in a context in which several inconsistencies may arise, related to the phenomenon of compulsive buying (uncontrollable desire to buy), which leads to an increase in the demand for products and orders. In view of this reality and in view of the appearance of logistic problems associated with delays and inefficiencies from the operational point of view, it is necessary to manage quickly, speeding up the preparation of orders according to a volume that will undoubtedly be higher than usual.

Although the increase in the probability of errors, due to the intensity of the volume of activity, is commonplace at this juncture, they must be avoided to a minimum in order to maintain efficiency levels, reducing operating and logistics costs, and of course, most importantly, persisting in the full satisfaction of the clientele. It is good to know that, just as there is an increase in orders, there may also be an increase in the number of returns, therefore, use should be made of what some experts call "reverse logistics", oriented to the investment of resources in the increase of staff hours and in the increase of costs related to the provision of extra space for the execution of activities that have to be carried out.       

 

What should be the roadmap for companies this season? Let's take a look at some points of interest:

● Orient investments in procedures that help to simplify production and distribution processes, trying to make them fast, flexible and safe.

● To carry out, by trained personnel, analysis and research processes related to fluctuations in demand, i.e., to understand the situations that determine the rise or fall in interest in certain products.

● Initiate forecasts to help anticipate consumption patterns, and then make decisions on pricing, investment plans, growth and everything concerning the status and potential of the market.  

● Thoroughly understand that the use of technology (Computer Networks, GPS, Big Data, LoT, 3D Printing) is a fundamental tool, to ensure a level of sales adjusted to the competitive status that signifies the season.

 

As can be seen, the 4 points described above reflect the business interest in making constant efforts to increase the level of sales during the Christmas season. The innovation and updating of the so-called online store is vital, since it complements the work that is usually done at the level of social networks, making the most of the Internet. It is about understanding in depth, the place that occupies the commercial activity based on the purchase and sale of services through electronic commerce (E-Commerce), which allows the rise of new business models that aim to create an innovative logistical vision focused on the generation of a universe of online stores.

Although the arrival of the holiday season translates into a significant increase in the levels of supply and demand, the logistics activity cannot be limited to selling for the sake of selling; it must not lose sight of the interest in increasing competitiveness, minimizing errors, increasing quality levels and reducing costs; elements that are fundamental in an economy of great activity and that aims at all times to increase the levels of technological innovation.     

Here's what Santa's logistics are like every Christmas

https://www.grupovalora.es/blog/packing-perfecto-logistica-ecommerce/

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