Key Takeaways
- Disruptions continue into 2025. Logistics professionals expect a chaotic peak season. Fifty-one percent expect this year to be worse than 2024
- Many retailers planned to ship peak season inventory at the end of June—weeks earlier than usual
- Even in the midst of economic disruptions, consumer expectations remain high. Consumer expectations continue to increase for eCommerce delivery. They want their orders—fast and free
- Solutions: improve fulfillment networks and manage inventory, diversify logistics service providers and manage customer expectations
Beat Disruption and Win Customers—How Retailers Mitigate Delivery Challenges to Meet Expectations
No brands can predict the future, but they can take steps to mitigate disruptions and meet customer expectations this peak season
Retailers prepare for peak in the midst of continuous disruption Retailers battle supply chain crises while they prepare for peak season. And many planned to ship peak season inventory at the end of June—weeks earlier than usual. Meanwhile, shopping patterns shift due to rising inflation and economic uncertainty. Consumers favored cheaper alternatives in some categories as economic concerns grew. Many opted to purchase services over goods. Americans spent nearly $44 billion less on goods in May but $76 billion more on services.
So how do retailers successfully navigate chaotic supply chains and shifting customer expectations?
No brand can predict the future, but they can take steps to mitigate disruptions and meet consumer expectations this peak season.
Diversify Logistics Service Providers (LSPs)
Retailers optimize their supply chains, and introduce flexibility, by diversifying logistics service providers (LSPs). While diversification strategies typically focus on transportation and sourcing, leading organizations apply the same strategy to warehousing networks. But time is running out to diversify LSPs before peak season begins.
Forty-four percent diversified their supplier networks to navigate disruption. Half consider further diversification to navigate peak seasons.
Forty percent diversified their parcel network and partnerships. As peak season approaches, 44% consider further diversification.
Twenty-eight percent leverage short-term warehousing to flexibly expand and optimize networks. And 45% consider short-term warehousing in the future.
Short-term warehousing boosts also position critical goods closer to customers, reducing delivery times and transportation costs.
