6 strategies for retailers to ensure deliveries at Christmas

Failures during this period can undermine the high earning potential of the date

Delivery failures are the top complaint among customers who shop for Christmas. According to data from SoluCX, a customer satisfaction and NPS (Net Promoter Score) research firm, 42% of customer complaints are related to long product delivery times, and 39% say delays are the main reason for losing interest in shopping on this date.

To keep retailers from becoming part of this statistic, Eduardo Muniz, a Massimo Consulting consultant — a firm specialized in retail and consumer goods — warns that it is necessary to go beyond delivery logistics and integrate the entire chain: technology, processes, logistics methods, IT, and communication between departments (sales, marketing, etc.).

Among the main strategies highlighted by the expert to prevent possible problems in the logistics chain and ensure customer satisfaction during this peak sales period are:

Learn from last Christmas:

Simple, but effective. Sales forecasting is an essential factor in preventing brands from losing sales. This allows retailers to produce with fewer errors by analyzing forecasts, avoiding both overproduction and product shortages. Reviewing the accuracy of sales forecasts during promotional periods is also necessary data to gather. It is important to assess the accuracy level of forecasts and learn from the process. Sales forecasting is increasingly incorporating technologies such as machine learning and big data analytics to improve accuracy and responsiveness across supply chains.

Ensure the quality of your systems:

In the case of online sales, one of the most important factors is having a properly functioning system. The goal is to prevent consumers from losing interest when accessing the brand's website due to server downtime caused by traffic spikes or some other failure. This can negatively impact sales performance, since consumers often abandon a purchase because of a "fragile" online system.

Apply intracompany communication:

Alignment between the Sales, Marketing, and Operations teams is essential to give the operation greater visibility and mitigate risks. The goal is to understand the impact the campaign will have on warehousing processes to ensure greater productivity in order picking and delivery during this peak sales period. Using cross-docking points can be a good way to speed up product distribution, increasing speed and reducing the number of movements. Another option is to position products closer to the end consumer to avoid lost sales due to lack of availability or extended delivery times.

Plan supply chain communication:

Once you have visibility into the campaign, share it with your partners. Transportation operations are heavily impacted during this period. Negotiate with your carriers and share the campaign plan with them. Increasing demand visibility for your suppliers will help build a more resilient chain during this critical period.

In addition to delivery delays, transportation problems can create a mismatch between inbound and outbound flow at the distribution center, causing significant productivity losses during this period.

Plan your warehousing processes:

The team needs to be able to handle outbound shipping, so aim to plan cohesive work shifts for both the company and employees. To meet full demand, it is necessary to have a number of employees appropriate to the product or service being sold, along with contingency plans for different scenarios. Therefore, ensure this minimum staffing level so that everything is done with quality and without delays in the delivery schedule.

Don't skip process steps:

Last but not least: don't skip process steps in order to avoid losing control, even under the pressure of increased demand. In trying to save time or guarantee delivery, product or service quality can suffer, and problems end up arising in the logistics chain. This leads to customer dissatisfaction and, likely, lost sales. Get it right the first time. This Lean Manufacturing principle is a good reminder that process quality is fundamental to productivity. Quality losses during this period can generate a volume of returns and dissatisfaction proportional to your sales.

Adopting these strategies helps ensure your brand turns a profit during this period of intense sales that is Christmas. It is important to emphasize that each of these processes must be carefully evaluated to make sure they fit your company's reality. Now it's just a matter of preparing with greater confidence for one of the most important sales events of the year. A profitable Christmas to you!