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e-commerce patterns are changing the market faster than
ever before, said Gary Colangelo, vice president of client
services for Spend Management Experts (SME), an Atlanta-
based financial supply chain consultancy.
“Peak season is always the elephant in
the room, for both shippers and carriers,”
Colangelo said. “They try to prepare for it—
everyone’s investing in their networks—but the
problem is the lack of historical data for e-com-
merce. You’re shooting from the hip because the
market is changing so rapidly.”
Some companies deal with demand fluctua-
tions by renting flexible warehousing space or
deploying pop-up hubs to handle overflow vol-
ume, or by adding days of service, like Saturday
and Sunday deliveries, to achieve better asset utilization,
he said. But the best approach to managing change is to
work closely with the small number of clients who drive
the bulk of the holiday surge to avoid last-minute surprises,
Colangelo said.
LSPs also have to be mindful about the mix of companies
that will share space in the facility, adds Newgistics’ Everett.
he explained. “In an ideal world, you’d have one tenant
with a peak in January, one in February, and one in March,
but that’s not how it works,” Everett said. “Most of them
align to the traditional retail peak.”
To avoid a full-on peak season meltdown, LSPs may
have to be selective about the customers they
take on. “All business is not good business,”
Everett said. “You’ve got to be smart about
which tenants you sign up and what oper-
ations you’re going to need throughout the
year. It won’t work if 100 percent of your cus-
tomers have peaks in the same week.”
Whatever strategy a company may choose
to survive peak season, industry experts agree
in the era of online shopping and omnichannel fulfillment.
