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Holiday season tests retailers' and shippers' workflows
One of the most significant lessons learned during this year's holiday season has been the need for shipping agility. One figure seeming to stand out in all of the news surrounding the last-minute shopping maelstrom - largely through e-commerce channels - is the United Parcel Service. The shipper indicated it would deliver roughly 34 million packages on Monday, Dec. 22, 2014, The Wall Street Journal wrote. By all accounts, that's a record-breaking number of deliveries, and it's also a lofty goal.
How can this possibly happen?
The key ingredient here is preparation. Having the right equipment and software is critical to overcome the massive hurdle imposed by such a large number of deliveries. It's an issue that UPS wants to avoid as the company was left with a black eye last year when it failed to get all promised shipments to consumers by Christmas.
Automation is one of the most important aspects of the shipper's plan. In fact, UPS invested nearly $500 million into sorting systems that would automatically redirect items. How? By scanning delivery ZIP codes and cross-checking this information with weather forecasts along the delivery route, the company could develop new pathways to ensure packages reach their intended destinations. The New York Times also explained that FedEx created a meteorological team to help the global operations crew adjust to weather and plan new routes.
FedEx also has a scanning system that examines all six sides of a box at a time, which reduces the amount of time it takes to classify a parcel to less than a second, The Times reported. Meanwhile, the United States Postal Service has adjusted by adding to its workforce.
Balancing expectations
In spite of automated systems, there's still significant pressure to execute at a high level. Retailers continue to express interest in selling as much inventory as possible heading into the new year, but they're butting up against the realities of shipping logistics.
For businesses with online storefronts, there's a demonstrated need to invest in address verification software to ensure shipping supply chains operate as smoothly as possible. Reducing or eliminating errors in the shipping addresses helps the big shipping organizations deliver parcels to the right locations on the first attempt. It's a lesson that can be applied to the coming year as well. The benchmarks set for the holiday season is likely to follow through in 2015 as customers demand accurate and efficient delivery.
