Peak Season Predictions from Körber Supply Chain Software
The art of meeting and exceeding elevated consumer expectations, plus increasing demand, are the forces driving continued transformation within supply chains for the remainder of 2024 and into 2025.
Here, a trio of Körber Supply Chain Software experts share their predictions for the 2024 peak season, informing industry best practices for the year ahead.
John Santagate, SVP Robotics at Körber Supply Chain Software
E-commerce is here to stay. Recent analysis of U.S. Department of Commerce data by Digital Commerce 360 show US e-commerce has grown at least 0.2 percentage points year-over-year since 2000, jumping 7.6% from 2022 to 2023 alone, and I don’t foresee this growth slowing down.
As we look to the 2024 peak season, I suspect online shopping will continue to rise as buyers seek the product variety available via digital channels. With the continued reliance on e-commerce, especially with the advent of TikTok shop (and the virality that comes along with it), companies will either sink or swim in this online environment.
Companies who swim will be the forward-thinking and agile organisations who approach their warehouse operations with tact and innovation. Businesses who thrive in today’s fast-paced environment, and under the pressure of peak seasons, all have one commonality: they have made smart investments in smart technology.
For example, an order management system (OMS) is the cornerstone to delivering an impressionable customer experience. This technology seamlessly integrates orders, inventory and customer data to adeptly tackle busy seasons for retailers. It uses predictive analytics to forecast patterns. It provides real-time visibility into available inventory across locations. It sets retailers up to champion peak season – with top-tier service at a reasonable cost. E-commerce isn’t going anywhere and organisations need to plan for its permanence.
Craig Moore, VP at Körber Supply Chain Software
Today’s consumers have sky-high expectations and little patience. According to Körber’s recent research, 72% of Gen Z and Millennials let shipping times dictate where they shop and 88% prefer to choose their shipping date. These standards for speed and convenience are challenging retailers, forcing them to become more agile than ever before. Many companies are aiming to rise to the occasion by moving products closer to the end customer. Retailers are approaching this in two ways: micro-fulfilment centres and brick-and-mortar stores.
Today, BOPIS (buy online pick up in store) continues to be operationally scrutinised against the merits of a micro-fulfilment strategy. While micro-fulfilment centres in densely-populated urban areas make good long-term sense, retailers will continue to look at their brick-and-mortar as a viable option for the mid-term.
The consumer ultimately wants doorstep delivery versus meeting the product at the shelf. Adaptable supply chain execution solutions are built for this journey, both in the warehouse and the store’s backroom. I believe the store of the future will be an operational hybrid that can deliver to the consumer where they want to be met.
Rik Schrader, SVP at Körber Supply Chain Software
With consumer experience expectations reaching new heights, today’s business leaders must move quickly to meet demand. As supply chain challenges, such as warehouse inefficiencies and labour shortages, persist, organisations will now look for ways to digitally transform operations to reduce the impact of future disruptions.
Companies will focus on improving their warehouse management strategy to enable next-generation worker productivity through gamification models. By utilising this strategy, leaders can create an engaging workplace environment that motivates employees through challenges and highlights success with rewards and leaderboards. In fact, according to a report from Gallup and Workhuman, deploying a gamification strategy within the warehouse can increase employee engagement, decrease turnover and reduce absenteeism by 81%, while lowering the risk of quality defects by 41%.
Additionally, leaders will look to improve their warehouse management systems, transitioning from outdated, legacy technology to more adaptable software. Autonomous mobile robots (AMRs) have already made their way into warehouses around the globe, and we will see this technology being more widely used going forward. AMRs will significantly reduce the warehouse’s reliance on manual labour, allowing for more flexible operations.
******
Check out the latest edition of Supply Chain Magazine and sign up to our global conference series – Procurement and Supply Chain LIVE 2024.
******
Supply Chain Digital is a BizClik brand.
