Four ways to avoid supply chain issues this online sales season

Australian shoppers broke records last year when November 2020 was reportedly the biggest month in Australian online shopping history, according to Australia Post, but with COVID impacting supply chains globally this year’s peak shopping season could trip up unprepared businesses, writes Stepehn Darracott, vice president and country manager, Pitney Bowes Japan, Australia and New Zealand.

The data shows that online purchases increased by 20.8 per cent when compared by the 2019 pre-Christmas peak. Additionally, online shopping growth for November saw a 55.6 per cent year-on-year (YoY) increase nationally, and a 16.8 per cent increase month-on-month. (1) This trend capped off a record-breaking year for Australian consumers. According to the 2020 Pitney Bowes Parcel Shipping Index, Australia reached one billion in parcel volume for the first time, up from 934 million in 2019.(2)

While Australian life has somewhat started to return to normal with ongoing lockdowns and restrictions easing across the country, the 2021 peak sales season is expected to be just as big for online shoppers. However, this will likely be a stressful time for shoppers and businesses as the country faces severe supply chain challenges and disruptions. As a result, etailers and online businesses must take steps now to prepare for a challenging peak sales season.

Preparing for the (almost) unpreparable

Lingering lockdowns and state border closures aren’t the only factors contributing to peak season stress. Australia continues to face severe supply chain challenges compounded by a number of factors including:
– skyrocketing costs due to increased pressure, congestion, and delays on ports
– continued COVID-19 outbreaks and restrictions causing delays in being able to pick up and deliver parcels as well as crippling ports across the globe
– an unprecedented increase in online shopping
– continued warning for consumers to shop for Christmas early
– reduced international flights into Australia
– transport worker strikes.

While it may seem like the perfect storm for many online businesses, there are a number of ways companies can better prepare for the onslaught of orders and challenging distributions.

Four steps to mitigate supply chain challenges this sales season

1. Invest in better communication with carriers

Carriers are one of the most critical parts of the supply chain and being able to communicate effectively with them is paramount to success during a busy period. Businesses must take the time to speak with carriers to see how they can help make processing faster at the business’s end to create a process that’s as seamless as possible.

2. Invest in better communication with consumers

Communicating with customers is essential at the best of times, though with millions of Australians waiting with crossed fingers on gifts being delivered on time for family and friends, providing shoppers with comprehensive updates on their orders is an absolute must this year.

Businesses need to be upfront with consumers, providing clear updates as much as possible on delivery cut-offs and expected delivery time frames. Most carriers have their shipping cut-off dates highlighted online, which can assist in the planning process and communications with customers. In addition, businesses must be clear about any stock shortages on both their websites and in communications with customers. Failing to do this will lead to many challenges for etailers and their consumers, as well as potentially damaging feedback from irate and frustrated shoppers.

3. Deploy solutions that offer multiple carrier options and best pricing options

Consumers are aware of disruptions in the supply chain. However, while shoppers may be understanding of continued delays in shipping, it continues to be essential that businesses are as transparent as possible about the extent of disruptions.

Investing in solutions that offer multiple carrier options and different pricing options can help businesses to better adjust to delays and disruptions by choosing the best shipping option for each individual order.

4. Engage local third-party logistics (3PL) providers

Businesses must be able to offer flexibility and, by engaging multiple carriers and local 3PL companies to complete deliveries, they can be better prepared to fulfill more customer orders. 3PL providers that provide outsourced logistics operations such as warehousing, inventory management, picking and packing, and shipping, can streamline the delivery process, making it easier for businesses to meet demand.

The next step

To help streamline this process, businesses should consider using a dedicated, multicarrier shipping platform that combines multiple carrier options with automation to help streamline order management and parcel sending.

By leveraging automation, and investing in solutions that integrate tracking options, businesses can expedite the shipping process on their end, subsequently streamlining the experience for both customers and the organisation. Additionally, by implementing these strategies now, businesses will be able to continue providing an efficient service into the future and be even better prepared for next year’s seasonal sales rush.

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