What logistics businesses can do to optimise existing systems

For a lot of retail businesses, the busy periods – such as Christmas – are the main events around which the rest of the year revolves. While products will be sold and shipped year-round, it’s when things really get going that you need to be most organised and prepared.

There are a number of things that can be done to optimize existing systems, helping to ensure everything runs smoothly. From optimizing your demand forecasting to committing to ongoing analysis, here’s what you should consider working on.

Demand forecasting

You need to know what to expect to meet demands and avoid issues in pretty much any context. In logistics, this is a multifaceted issue that usually revolves around demand forecasting. 

While demand is never entirely predictable, AI-powered data analysis tools have made it far easier to achieve acceptable levels of prediction, allowing you to spread loads out over longer periods of time to avoid overstretching your existing systems. 

Real-World Examples:

1. Retail chains like Amazon use AI-powered forecasting tools to predict surges in specific products during holiday seasons, enabling better inventory allocation across warehouses.
2. FedEx incorporates historical shipping data to plan additional delivery routes and staffing during high-demand periods like Black Friday.
3. Supermarkets anticipate seasonal spikes in perishable items such as turkeys at Thanksgiving, ordering supplies weeks in advance to avoid shortages.
4. Fashion retailers predict demand trends for specific winter clothing lines, ensuring warehouses are stocked and ready for dispatch.

Invest in automation

Automation in logistics is sometimes viewed as an all-or-nothing proposition, but it doesn’t have to be this way. Using services like Joloda Hydraroll, you can often optimise your existing system by implementing some kind of automation technology in just one area. 

Whether you automate how your lorries are unloaded or how items are transported to and from the shelves, it’s worth considering how a small change could potentially profoundly impact your overall efficiency during busier periods.

Real-World Examples:

1. Joloda Hydraroll offers solutions like automated loading systems that reduce lorry turnaround times by up to 30%.
2. Amazon’s warehouses use robotic shelving systems, where robots move shelves directly to human pickers, speeding up order fulfillment.
3. DHL implemented automated sorting systems in its distribution centers, enabling faster and more accurate parcel classification during the Christmas rush.
4. Grocery delivery services like Ocado employ automated conveyor belts to organize orders efficiently, meeting customer delivery windows even during heavy demand.

Flexible workforce scaling

While automated systems can often pick up the load as and when it’s necessary, the people involved in the logistics process – from warehouse managers to drivers – won’t be quite this adaptable. To make this work, you’ll need to adopt some kind of flexible workforce scaling model.

You’ll have your permanent, long-term employees who stay with you year-round, but then you’ll also have a reliable source of contract workers who can join the team for those busy periods. Finding a reliable, affordable source of labor for these periods can be tricky, and you’ll need to get the ball rolling months in advance.

Real-World Examples:

1. UPS brings on over 100,000 seasonal workers each holiday season to handle the surge in package deliveries across the U.S.
2. Retailers hire temporary warehouse staff to ensure timely order picking and packing during flash sales like Cyber Monday.
3. Grocery stores employ additional drivers during festive seasons to meet increased demand for same-day deliveries.
4. Logistics firms partner with staffing agencies to create a reliable pool of contract workers for critical roles such as dispatch and sorting.

Ongoing analysis

It’s crucial that you don’t just look at historical seasonal data to optimize your systems in the present. During busy periods, you still need to look at all the real-time data you have available to you, trying to spot emerging bottlenecks and inefficiencies in all areas.

This will allow you to constantly tweak and optimize your existing systems based on their current demands rather than solely on past predictions, which may or may not have turned out correct. Don’t let these analyses dominate, but do keep them running in the background. 

Optimising your approach to logistics will be an ongoing issue, and it’s important to come back to it at regular intervals. Keep on collecting data on how you’re performing, and ask people actually involved in the day-to-day running of your logistics process, so that you don’t miss out on any potentially highly impactful changes you could make.

Real-World Examples:

1. Amazon uses real-time analytics to monitor package movement and adjust shipping routes based on weather conditions or unexpected delays.
2. Walmart tracks in-store and online sales data hourly during peak periods, ensuring stock replenishment aligns with customer demand.
3. Shipping companies use IoT sensors on delivery vehicles to analyze fleet performance and reroute trucks to avoid traffic jams.
4. E-commerce businesses evaluate order processing times daily, tweaking warehouse workflows to reduce delays in fulfillment.

Conclusion

Busy periods in logistics present unique challenges, but with proper planning and system optimization, businesses can thrive under pressure. From leveraging advanced demand forecasting to embracing automation and maintaining a flexible workforce, these strategies can help you navigate peak seasons smoothly. By committing to ongoing analysis and making data-driven decisions, you’ll be better equipped to meet customer expectations and sustain growth.

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FAQs

1. What is demand forecasting in logistics? Demand forecasting in logistics predicts future demand for goods or services, enabling businesses to prepare resources effectively.
2. How can automation improve logistics operations? Automation streamlines tasks like sorting, loading, and inventory management, reducing errors and increasing efficiency during peak periods.
3. What does flexible workforce scaling involve? It involves hiring temporary workers during busy times to supplement your permanent staff, ensuring smooth operations without overstaffing year-round.
4. Why is ongoing analysis critical in logistics? Ongoing analysis helps identify and address inefficiencies in real-time, allowing businesses to adapt quickly to changing demands.
5. What tools can help optimize logistics during busy seasons? Tools like AI forecasting software, automated sorting systems, and real-time analytics platforms are invaluable for managing peak-period logistics.