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As shippers, carriers, and retailers across the country prepare for parcel peak shipping and increasing peak season transportation demands, the need for effective and affordable management processes is critical. While COVID-19 shutdowns and supply chain disruptions have likely forever changed the way consumers shop and make purchases, the impact it has had on transportation service providers remains to be fully seen.
The pandemic boosted online spending by $183 billion over the past year. It has permanently accelerated e-commerce, with Americans on track to spend $1 trillion online, a record amount, in 2022, according to a new reportcited by Forbes. It is into this strained and changing market that peak season capacity demands deliver the most significant disruptive impact. The entire supply chain network must begin preparing now for the increasing peak season shopping and transportation demands that are likely to come before the end of the year.
Too much demand means shippers need an advantage that goes beyond peak season, including the everlasting peak that has come with higher surcharges. Peak season transportation management is about projecting and planning for increased demands by securing more capacity and paying closer attention to supply chain logistics, inventory levels, and consumer trends. Higher peak season projections will continue with the increase in digital shipping and e-commerce opportunities. For instance, shippers that review the data projections for transportation spend by mode are better equipped to determine which carriers may have capacity as the market tightens. Anticipating and planning for these increases and spikes ahead of time with actionable insights can allow supply chain managers and shippers alike to better manage the disruptions and strains of these peak demands.
When transportation service providers, supply chain managers, and shipping team members can quickly and efficiently access and use data, it becomes much easier to stay strategic and actionable with day-to-day operations. During peak seasons, periods of increased demands, and higher capacity issues and strains, capturing data makes it easier to stay ahead of the competition. Effective peak season transportation management helps managers understand when to diversify, when to branch to other shipping modes, adapt to shifting consumer habits, and be flexible and adaptable on the fly.
As an example, zone skipping and hub injection may be useful alternatives to areas with tight air capacity, meaning limited parcel shipping. These options yield a lower transportation spend by tapping resources that might have flown under the radar.
Meanwhile, the ability to implement scalable and adaptable processes and the capacity for on-demand data analysis can make it easier for management to leverage actionable insights effectively. The potential for record profits remains clear as consumer habits continue to point toward a record-breaking peak season. As highlighted by Forbes, during the first 12 months of the pandemic, more than $844 billion was spent online in the United States, an online spending increase of more than 40% compared to 2019. Estimates are that by the end of 2021, that number may well surpass $930 billion. Shippers cannot ignore opportunities such as these, and e-commerce growth must remain a top priority to maximize profits and sustain growth during this period of recovery and adaptability. Peak season transportation management makes it all possible.
There are many benefits to enjoy by implementing improved peak season transportation strategies and reducing new disruption to logistic management.
As supply chain managers, team members, vendors, and partners across the country prepare for increasing peak season transportation demands, access to reliable and accurate data has never been more vital. Understanding how this digital shift is impacting the transportation network is critical for achieving continued growth and success. Contact Intelligent Audit today for more information on staying proactive, reducing confusion over transportation spend analysis, and the insights necessary for preparing for the future based on solid data analysis and intelligent data reports.
Set up a call with one of our experts to discuss how Intelligent Audit can help your business uncover opportunities for cost reduction and supply chain improvements through automated freight audit and recovery, business intelligence and analytics, contract optimization, and more.
