Hatmill - Supply Chain & Logistics Advisors | B Corp™’s Post

We're sharing some great insights from peak trading in 2024 and practical suggestions to get you ready for peak 2025. Simon's post is the output of the Hatmill team reviewing logistics performance across our network. Thanks to everyone who shared their experiences with us.

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CEO & Founder, Hatmill | Ranked No1 UK BestWorkplace 2023 | Supply Chain & Logistics | Warehouse Automation | Project Management | 3PL | Demand Forecasting

"Unwrapping the Insights: A Review of Christmas Peak Logistics 2024" We’ve been catching up with our network throughout January to see how their peak trading went. Here are some valuable insights from these conversations: • Timing of Christmas Volumes: Some grocery retailers reported that Christmas volumes came in later than last year, with significant spikes in demand during the last two weeks of December. • E-commerce Delivery Performance: E-commerce carriers received high praise for their delivery services this year. Many retailers noted an improvement over last year's performance, with delivery promises being met up to Christmas Eve. • Export Challenges: Export products to Ireland and the EU were delayed, primarily due to border administration processes. • 3PL Operations Issues: Some challenges within third-party logistics (3PL) operations were noted. A lack of planning, adherence to processes, and poorly executed training of temporary colleagues negatively impacted peak trading sales performance for some retailers. • Temporary worker challenges: The temporary labour pool significantly differs from 5+ years ago. The quality and skills of people have declined; the time to competence is extended, and the turnover of people is higher. This has resulted in lower productivity from temporary staff, leading to lower capacities and higher costs • Detailed Planning: Insufficient planning was highlighted as a challenge for some businesses. A significant issue was a limited understanding of the peak volume effect on their supply chains. However, retailers who engaged in detailed planning during the summer ensured their plans were mature and flexible enough to handle forecast demand plus a contingency. • Automation Benefits: Retailers operating with automation reported volumes within planned peak capacities, resulting in a smoother flow of demand compared to previous years. So, what would they do differently? • Increase the use of in-house fleets to support store replenishment. • Improve colleagues' skills and training, from administrative tasks to process adherence. • Review 3PL performance and capture planning and performance issues for use next year. • Move to more fixed-term contracts for temporary labour and investigate automated solutions to reduce the reliance on temporary labour. • Enhance forecasting data and departmental integration to improve visibility throughout the year. • Develop strategies to obtain and retain high-calibre temporary staffing to support peak activity. • Review distribution centre management structures to support an increase in temporary labour. • Consider equipment failure contingencies and book additional short-term hire material handling equipment before peak activity. As always, there's lots to consider here, and the next peak will be on us before long!

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