Using 3PL software for a successful post Peak Season

The holiday season’s surge in orders can strain supply chain and logistics operations. While most retailers and manufacturers prepare for this uptick in demand, third-party logistics providers (3PLs) also need a post Peak Season plan to handle everything from returns to restocking.

Preparing for a successful post Peak Season

As the holiday season ends, 3PLs and fulfillment warehouses face new challenges in the form of returns and restocking inventory. During this time, 3PLs must be prepared for post-holiday returns management, logistics planning, and inventory management. They can achieve this with a balance of operational best practices and the smart use of a 3PL warehouse management system.

Enhanced customer satisfaction with efficient returns management

Ecommerce return rates have increased significantly in recent years. Around 39% of customers return an item they bought online at least once a month. The total cost of returned merchandise has reached $743 billion in the US. These figures indicate the need for efficient returns management.

Here are some best practices for post peak season returns management.

Streamline the returns process

The return process starts with the customers. So, it’s important to set a customer-friendly return policy that’s easy to understand and follow. It should also have provisions to make the returns process quick and convenient for customers by providing them with return labels and instructions on how to send back the product.

A returns management tool can streamline the process by automating return authorizations, tracking returns, and processing refunds. It also reduces the burden on warehouse staff and improves overall efficiency.

Optimize reverse logistics

An integral part of reverse logistics for 3PLs is coordinating the flow of products from end customers to the warehouse and back to the supplier. It involves inspecting, sorting, repackaging, and disposing of returned items. Warehouse owners must have an item assessment system to inspect returned products and determine whether they can be resold, repaired, refurbished, or disposed of.

Leverage Technology for Returns

Post peak season warehouse management can get chaotic due to the sheer volume of returned products. Technology can lessen the burden by automating manual processes. For example, implementing barcode scanning technology can help with inventory management and tracking returned product status.

AI-assisted tools can further forecast return patterns to give warehouse managers ample time to prepare for an influx of returns. Similarly, cloud-based systems can provide real-time data and analytics to track the performance of reverse logistics processes and identify bottlenecks for swift resolutions.

3PL software for strategic inventory replenishment

After Peak Season, warehouses must restock their inventory to keep up with demand in the new year. The following inventory replenishment strategies assist in this process.

Analyze Post-Holiday Sales Data

Fulfillment warehouses and 3PLs must make use of their data to determine high-demand products and slow-moving items. The former will show items that need restocking immediately, while the latter can highlight products they shouldn’t replenish to avoid overstocking.

Implement just-in-time (JIT) replenishment

A JIT inventory system reduces inventory costs and carries the least amount of stock to fulfill orders. The warehouse restocks items only when required, reducing excess products in storage.

However, this method requires accurate data collection and forecasting to avoid running out of stock. 3PLs should also connect with suppliers to monitor product delivery in real-time.

Utilize advanced inventory management systems

Advanced inventory tracking systems can help 3PLs analyze post-holiday data and implement JIT strategies. These systems use advanced algorithms to forecast demand and optimize inventory levels.

They also offer real-time inventory tracking to provide accurate data for restocking decisions. Many also integrate with other warehouse processes, such as order fulfillment and reverse logistics, for seamless post peak season warehouse management.

Warehouse software and comprehensive logistics planning

Once the holidays have ended, 3PLs should already be planning for everyday ecommerce shopping in the coming year. Here are some best practices for logistics planning after Peak Season.

Evaluate transportation strategies

Start by auditing the existing transportation strategies and methods. Identify cost-effective alternatives if possible or renegotiate contracts with existing carriers. A combination of transportation modes, such as rail and trucking, may also help cut costs and improve efficiency.

More importantly, create a plan to deal with potential disruptions, such as inclement weather or increased demand. Backup carriers and alternative routes are feasible options to include in the contingency plan.

Optimize warehouse operations

The peak season is also a learning opportunity for 3PLs and fulfillment warehouses to identify inefficiencies. Post-peak season logistics optimization involves improving these areas and discovering new ways to streamline processes. 3PLs can do this by:

• Reorganizing warehouse layout to improve order-picking efficiency
• Implementing automation technologies for faster and more accurate order fulfillment
• Streamlining reverse logistics to reduce return processing time
• Implementing cross-docking strategies to reduce unnecessary inventory handling
• Accelerating order fulfillment through order batching

Enhance Staff Training and Scheduling

When streamlining warehouse operations, 3PLs with advanced fulfillment management systems, like Logiwa IO, can look at labor standards as well. Human labor is equally important in this process.

If required, 3PLs may need to adjust their staff levels and scheduling to accommodate the post-peak season workload. It’s best to complete new training and adjustments well before the start of the peak season to maximize efficiency during this time.

Leveraging Logiwa IO for post Peak Season efficiency

Technology is imperative to 3PL success during, and after, Peak Season. A cloud-based warehouse management system (WMS) like Logiwa streamlines the return process with the following technological capabilities:

• Real-time tracking
• Automated returns processing
• Mobile scanning and processing
• Third-party integration with client systems

Since the WMS offers real-time inventory tracking, warehouse managers can monitor inventory levels closely. The system updates to reflect incoming returns and adjusts inventory levels accordingly, allowing for accurate forecasting and planning for future orders.

Logiwa also assists 3PLs and fulfillment warehouse managers in automating logistics planning with AI. Our AI-driven fulfillment management system (FMS) has helped users increase productivity by 38% and task efficiency by 58%. Based on demand data, it also optimizes warehouse layouts, picking routes, and item placement. As a result, users have achieved an order shipping rate of up to 93% in 24 hours.

With the right planning and 3PL software successful post Peak Season fulfillment is possible

The 3PL best practices for the post-holiday season discussed above can help businesses run their operations smoothly despite the challenges this season brings. Besides intelligent planning and optimized logistics operations, technological solutions can make a huge difference in handling post-holiday returns and inventory management.

By using Logiwa IO for warehouse management, warehouse managers and 3PLs can not only automate their logistics and inventory processes, but also gain valuable insights into demand patterns and user behavior that can be used for better planning in the future.

Schedule a call with a Logiwa fulfillment specialist to discuss your needs and learn how our AI-driven FMS can help you achieve perfect order fulfillment post-peak season.
 

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