The annual peak season in global supply chains is typically a predictable period of heightened activity. Fuelled by festive shopping sprees and back-to-school preparations, it’s a time for businesses to ramp up their supply chains, ensuring shelves are stocked and deliveries arrive on time. However, this year’s peak season is shaping up to be anything but ordinary. Recent disruptions in the global supply chain have thrown a spanner in the works, creating a scenario fraught with potential delays and unforeseen challenges.
A perfect storm of disruptions:
The past few years have witnessed a series of unprecedented events that have significantly impacted global supply chains. From the initial shockwaves of the global pandemic to ongoing geopolitical tensions and critical infrastructure bottlenecks, the smooth flow of goods has been repeatedly disrupted. These disruptions have a domino effect, with delays in one part of the chain causing cascading impacts on other segments.
The ripple effect of delays:
For businesses, the impact of peak season delays can be severe. Late deliveries can lead to stockouts on shelves, disappointing customers, and potentially damaging brand reputation. Additionally, delays can disrupt production schedules, impacting manufacturing output and hindering a company’s ability to meet market demands.
In today’s competitive landscape, where customer experience is paramount, timely deliveries are no longer just an expectation, they’re a key differentiator. Delays can erode customer trust and loyalty, pushing them towards competitors who can reliably fulfil orders. Ultimately, these disruptions have the potential to significantly hinder a business’s continuity and competitiveness during a critical sales period.
The importance of proactive planning
Given the current volatile environment, a reactive approach to peak season is simply not enough. Businesses must embrace a proactive stance, one that prioritises strategic planning and collaboration with experienced supply chain partners. By anticipating potential disruptions and developing contingency plans, businesses can mitigate the risks associated with delays and ensure their supply chains continue to operate smoothly throughout peak season.
Navigating the current market:
It’s important to note that carriers are prioritising space for customers who consistently meet allocation agreements, highlighting the importance of collaborative planning.
From our internal data, the numbers speak for themselves:
The current disruption is far from theoretical. Carrier transit times have ballooned from an average of 34 days to 46 days between October and March. This significant increase translates to a longer wait for your cargo to reach its destination. Furthermore, on-time reliability has plummeted from 44% down to a mere 10% during that same period.
This means that only 1 in 10 shipments are arriving on schedule, creating significant uncertainty for businesses. To compound the issue, transit time’s reliability has also taken a major hit, falling from 44% to a concerning 11%. Essentially, very few shipments are arriving both on time and within the expected timeframe.
Strategies for success:
Given these statistics, here are some strategies to consider:
A proactive approach with Ligentia:
Disruptions are a reality in global supply chains, and peak season can be particularly susceptible to unforeseen challenges. At Ligentia, we understand the importance of mitigating risk and ensuring business continuity throughout your supply chain.
Here’s how we can help you navigate the upcoming peak season, even in a volatile market:
Don’t wait until the last minute! Contact Ligentia today for a free consultation and let us help you develop a winning peak season strategy.
Together, we can ensure smooth sailing for your supply chain!
