Helping Retailers Cope With The Shipping Crisis
By Devin Partida, ReHack.com
For retailers preparing for the holiday season, the idea of shipping out hundreds or thousands of orders during this critical sales period is daunting and can be overwhelming. Add on the current shipping crisis taking over ports in the country, and retailers will be facing unprecedented obstacles this year.
Retailers everywhere have been forced to pivot to meet growing consumer demand quickly. The 2021 holiday season is just around the corner, so retailers must have plans in place to overcome the obstacles the crisis will present.
Understanding The Shipping Snarls
To come out on the other side of this shipping crisis, it’s vital to understand the state of shipping. The COVID-19 pandemic, among labor shortages, harsh weather conditions, and container shortages, has exposed the fragility of the global supply chain, and the effects are expected to continue into the post-pandemic era.
The global supply chain transports essential items, from food products to diapers. When one issue occurs, it creates a domino effect, making the entire supply chain less efficient. Some of the U.S.’s biggest shipping ports are packed with ships waiting to empty their cargo into warehouses, which are already stuffed themselves.
Virtually every business worldwide has felt some effects of the shipping crisis, but retailers may be the most affected. Major retail brands like Walmart, Target, and Coca-Cola have had to get creative to mitigate the shipping snags.
Tips For Retailers Trying To Overcome The Shipping Crisis
Major retailers have used chartered vessels to deliver their products, but smaller retailers struggle to keep shelves stocked. Not every business has the cash flow to afford to charter, so how can retailers cope with the current crisis during the peak holiday season?
Below are some tips that may help retailers alleviate some of the stress associated with what’s expected to be a chaotic sales period.
1. Be Transparent With Customers
Managing customer expectations is something every retailer should prioritize, but now, it’s even more important. Customers should be made aware of the shipping delays companies are experiencing to shift their expectations of when products will be delivered.
Adopting a spirit of transparency is something every retailer should prioritize, especially during the holiday season.
2. Avoid Promoting Out-Of-Stock Items
No customer wants to get excited about purchasing items that only end up being out of stock. Retailers must manage their marketing campaigns and only promote things with plenty of inventory to support increased customer demand.
More retailers adopt new emerging technologies, such as artificial intelligence (AI), which brings us to the next tip.
3. Implement Artificial Intelligence (AI) To Assist With Inventory Orders
AI can be an extremely valuable tool to automate internal retail operations. With AI, retail businesses can predict whether inventory will fill a shipping container, and orders can be made accordingly.
Consider using AI to enhance operations and mitigate supply chain disruptions during the peak holiday season.
4. Consider Working With A Fulfillment Center
It may pay off to outsource some help by using a dedicated fulfillment center. Retailers now know that customers expect orders to be shipped in a matter of a couple of days, and fulfillment centers can help retailers meet those demands.
Because e-commerce is booming right now, many online retailers have turned to using fulfillment centers to handle the influx of orders they’re receiving daily.
5. Turn To Air Freight
Because container shipping rates are climbing, some retailers turn to shipping products by air. Air freight rates have gone down considerably in 2021, and companies are trying to take advantage of it.
While shipping by air may not work for every type of retail business, it’s worth looking into to sidestep the current shipping issues facing the global supply chain.
Consider these tips this holiday season, as it’s expected to come with its fair share of obstacles. It’s critical to stay ahead of the curve due to these shipping delays and remain transparent with customers to know what to expect when they order online.
Using Creative Ways To Avoid Shipping Delays
Black Friday kicked off the holiday shopping season, and retailers will likely face unprecedented challenges due to the global supply chain crisis. The tips above should help alleviate some of the stress associated with these challenging times so retailers can deliver on customer expectations and have a profitable sales period.
About The Author
Devin Partida is a writer and blogger interested in retail technologies and business solutions. To read more from Devin, visit ReHack.com, where she is the Editor-in-Chief.