Every holiday season suppliers try and figure out where the highest demand will be. Will it be directly in-stores, on-line and pick up in-store or right from the warehouse online. Unfortunately, we’re not mind readers but, there are ways that we can make this process less painful and more profitable.
According to Warehouse Capacity Economics and Trends’ survey, 74% of retailers cite fluctuation as a key challenge throughout the year. Below are 3 tips on solving your holiday/ year-long fluctuation issues.
- Avoid Supply Chain Interferences
Between the unpredictable weather, transportation issues, inventory planning and fluctuation in product demand, change is going to happen. Solving this issue with overflow 3PL warehouse space and employees can be the medication to this headache. Some distributors may think that this is a costly option out of reach, but in reality, the cost is distributed between all of the warehouse “tenants” which makes using a 3PL an affordable option. Not to mention then you will have a team of distribution experts working directly for you.
- Don’t Horde Your Products
By cramming all of your product into your facility and not having it organized with adequate space for picking, your efficiency will be lessened causing you to lose more in profit that you care to know about. By hiring a warehouse that knows how to move your product quickly, you will increase your ROI. Time is money.
- Short Term Building Leases are for the Birds
Your company has its seasons and when sales are down, warehouse space and full-time employees go unused. This can cause huge gaps in a company’s profit especially depending on how long the slow period lasts. By using a 3PL, you are paying for space that you are using. The money that you are spending is going toward a profitable ROI vs. empty warehouse space and employee paychecks. Efficiency is key to long-term business success.
We hope that these helped. And more so, we wish you a happy, healthy, and profitable holiday season!
Have more questions? Give us a call, instant chat with us or send us an email. We are always here to help.