Get Ready for Peak Season with These Warehouse Preparation Tips
July 10, 2024Summer is here, and for those in the materials handling world, that means one thing—peak season is just around the corner. Peak season is the highlight of the year. In fact, 40% of retail businesses say that half of their annual sales come during peak season. Summer is the perfect time to begin planning for the fourth-quarter rush. The earlier you prepare; the easier distribution will flow during the holiday season.
To help you get ahead of the curve, we’ve put together a few tips for you. This article will help you hit peak season right in stride so you can make the most of it and call Q4 a big win!
Early Planning
The first step is to analyze what you already have, what you need, and what your budget will be. Begin your peak season preparations with a clear understanding of what your facility is capable of.
How much volume of products do you move out of your facility on a normal basis? How much more volume do you anticipate during busy months? As orders increase during busy times, you’ll be running at high speeds and moving more products. This is not the time to find out that your production lines aren’t capable of higher volumes.
Another important factor of your assessment should be supplier relationships. Examine your supplier relationships now to determine whether you have a clear line of communication with them. As you go into peak season, you’ll want to be confident that your needs will be met if you get into a pinch.
Update and Stock Up
Imagine you’re right in the middle of peak season and one of your key machines breaks down —the horror!
This is why updating systems and preventative maintenance is where you will find the most benefit from early planning. Now is the time to update your system and perform any needed maintenance—not in the middle of a holiday surge.
One easy, but absolutely critical, thing to do is make sure you have plenty of spare devices. Lead times are still out of control, so it’s best to stock up for what you might need right now. Manufacturers are under immense pressure due to equipment shortages and with current lead times you cannot afford to have long periods of downtime—especially during peak season. If suppliers cannot guarantee to get the parts to you in a timely manner, place your order now. It’s best to be at the top of the list in this case!
Be sure to conduct a proper analysis of your entire system. We suggest you really look for small details like loose equipment, or seemingly insignificant parts like greasing components. It really is better to be safe than sorry!
Hire and Train More Staff
Labor shortages and high turnover rates have plagued the warehousing industry over the past several years. However, you’re going to need additional staff to be successful during peak season. With more orders coming in, you’re going to need more bodies to handle the order fulfillment and inventory management. Some of the ways you can approach staffing include:
Offer bonus incentives for current employees to improve attendance and performance. Consider sign-up bonuses for short-term and temporary workers. Think of ways to make work interesting and fun, like free snacks, raffles, and prizes for workers.
As you bring in more workers for peak season, make sure to give them adequate training. In fact, the same peak season training should be provided to your current associates to ensure everyone is on the same page.
Staff a local staffing partner like MS-IL Staffing & Packaging. MS-IL Group is a fully integrated labor provider that provides top-to-bottom labor recruiting & mobilization for manufacturing, warehousing, packaging, distribution, and fulfillment facilities. Included in our all-encompassing services are Temp to Hire, Direct Hire, Seasonal Contingent, and Piece Rate billing options
Inventory Optimization
Balancing inventory levels is critical during peak season. Overstocking can lead to unnecessary holding costs, while understocking means missed sales opportunities. Managers must implement strategies for efficient inventory management to meet demand without compromising financial stability.
One of the key strategies is real-time inventory tracking. Through advanced inventory management systems, you get real-time tracking and visibility over your overall stock levels, thereby keeping you updated and able to make decisions on time to prevent overstocking or stockouts. Another key approach is demand-driven replenishment. Setting up systems that allow for the automation of restocking actions once actual demand data from real time picks up allows you to orient replenishment with real sales patterns so that inventory levels are always optimal.
Technology Investments
Technology can make all the difference in ensuring the smooth functioning of operations during peak season. Investments in upgraded systems bring in efficiency, reduce chances of downtime, and support data-driven decision-making.
You can also establish integrated ERP systems that would streamline and integrate different business processes to make your operations smoother, more efficient, and cohesive in nature. Leverage the latest technologies in manufacturing, such as smart manufacturing, IoT, and AI, to look into the optimization of your production process and increase overall productivity.
Conclusion
From assessing your current capabilities to hiring and training additional staff, every step is crucial to ensure smooth operations and maximized profits. Ensuring your technology is up to date, alongside optimizing inventory and maintaining strong supplier relationships, can make a world of difference.
Don’t wait until the last minute. Start now and give yourself the time you need to implement these strategies effectively. Remember, preparation is the key to turning the challenges of peak season into opportunities for success.
If you need further assistance with talent & workforce management, don’t hesitate to get in touch with one of our experts. Let’s make this peak season your best one yet!