Many retail companies require operational capacity that can handle various levels of inventory and production levels while at the same time, managing overall supply chain costs. Particularly for those who are limited in supply chain management skills, these unforeseen challenges and costs can easily erase any profit that could have been made during these same seasonal peaks.
Volume fluctuations drastically change capacity requirements, even when a company is able to accurately forecast demand swings. That’s why partnering with a retail 3PL that can provide your operations with the ability to increase capacity may become vital for supporting efficient operations and increasing the probability of successful peak seasons. For example, a retail 3PL should be able to make your warehousing operation more efficient by splitting the facility footprint cost between several clients. Retailers with counter cyclical peaks can be paired within one facility to enable the optimal use of valuable space over the course of a year, thereby reducing cost associated with seasonal supply chain demands.
Dealing with seasonal supply chain demands also requires a flexible labour force. A retailers HR department can benefit from forming a strategic relationship with a retail supply chain provider with a proven national capability in providing temporary workforces. Having efficient onboarding and training programs for new employees is critical for quickly bringing them up to full productivity. A retail 3PL can help you flex your workforce within a facility and supplement with temporary workers to ensure that peak and non-peak production requirements are met.
Developing the proper infrastructure and an efficient distribution network that can flex in response to changing seasonal volumes can take years of
manual experimentation, and a lot of money. To avoid costly seasonal demands that impact overall annual performance, retailers of all sizes can turn to supply chain experts for outsourcing some, or all of their infrastructure, including warehousing and distribution, increasing profitability, while at the same time providing organizations with more time to focus on building their business.
Contact one of our retail logistics experts today for more information on how SCI can help improve the scalability of your retail supply chain with network modelling services, inventory management, warehousing and distribution, and a wide variety of value added services ranging from gift wrapping and packaging, to retail returns (reverse logistics).