What Do 3PLs Focus On In December?

So we survived the Black Friday/Cyber Monday (BFCM), but what now? We aren’t out of the woods yet, there are still over 3 weeks until Christmas with new challenges popping. up each day. But what exactly should third-party logistics providers (3PLs) be focusing on to ensure smooth operations for the remainder of the holiday season? Check it out here! 

Prioritizing last-mile deliveries

Meeting Christmas deadlines is now the top priority, with client and customer expectations at an all time high. 3PLs will need to coordinate with carriers to ensure all packages leave by the recommended ship date and are set to make it to their desired location on time. Increased volume and weather-related delays are no excuse for packages to miss holiday deadlines. It's vital for 3PLs to proactively communicate and implement contingency plans in order to uphold their commitment to timely deliveries. 

Managing inventory replenishment

Following the BFCM rush, 3PLs will need to actively replenish the inventory that is moving out the door. High-demand SKUs will need to be monitored closely so that there aren’t any issues fulfilling orders for last-minute shoppers. This also requires an understanding of the current sales trends and the ability to predict which items will gain popularity as the holiday season continues. 

Optimizing labor and resources

Staffing allocations may need to be adjusted based on fluctuating demand. Maybe labor needs to be moved to the reverse logistics department, or to inventory replenishment. Maybe the warehouse still needs to add more team members to help with the increased volume. Each day will present a unique challenge that can be managed in part by adjusting how and where labor is allocated. 3PLs need to remain agile and responsive, ready to strategically adjust labor with each unexpected twist and turn. 

Preparation for post-holiday returns

As the holiday season progresses, it's important to fine-tune reverse logistics processes to prepare for the inevitable surge of returns that will begin. Customers will exchange and return items that didn't meet their expectations, sending them back to the warehouse they came from. 3PLs will need to ensure smooth handling for clients and customers, creating a seamless process to receive items back into the building. This means training staff to update inventory with returned stock, coordinating with retailers, and so on. 

Monitoring and reporting performance metrics

Tracking fulfillment accuracy, delivery times, and operational bottlenecks can help to improve the team’s performance in real-time. Identifying areas for improvement can help get all of the last-minute orders out the door and improve processes going into the New Year. Once areas of improvement are identified, workflows can be streamlined and overall productivity will be improved. 3PLs should use the holiday seasons to lay the groundwork for more refined processes, setting the stage for continued success and growth.

Supporting last minute sales campaigns

Retailers and individual brands tend to have promotions leading up to Christmas and New Years that entice customers to make additional purchases. It is vital for 3PLs to keep the foot on the gas pedal and support any last minute sales with efficient operations. These orders need to be fulfilled even more accurately due to the time constraints of meeting carrier shipping deadlines. Having a proactive approach to last minute sales campaigns not only helps with the holiday rush, but with building positive relationships with clients. 

It is vital for 3PLs to maintain operational excellence through the final stretch of the holiday season, wrapping up the year on a high note. This period is defined by heightened consumer demand, increased shipping volumes, and intense pressure to meet deadlines. 3PLs can meet expectations and head into the New Year on a positive note by addressing challenges with flexibility and strategic planning.

Looking for a new 3PL going into the New Year? Contact Brandfox to learn how we can help with all of your logistics needs!