Deposco Survey Reveals: WMS and Order Administration are the Key to Peak Season Profitability
In a current survey, greater than 150 retailers, wholesalers, and 3PL/4PL companies reveal how ready they’re for peak season 2023, what they plan to give attention to this yr, and the way their priorities, issues, challenges, and know-how investments examine to 2022.
Listed below are 5 vital peak season survey findings:
-A warehouse administration system (WMS) and order administration system (OMS) are key to peak season profitability. For many respondents, investing in a contemporary WMS or OMS is essential for peak season success: 92% declare that these options will put together their warehouse operations to be extra worthwhile throughout peak season. Of this group, 70% are actively implementing their WMS or OMS resolution investments. As a result of a WMS or OMS serves as the inspiration for stock, operations, and different know-how methods, getting any such resolution in place is step one to deploying automation, which greater than half of respondents are prioritizing this yr.
Labor points gasoline peak season automation deployment. Deploying automation is the highest technique for overcoming labor challenges, with 55% figuring out it as their most well-liked strategy (in comparison with 11% in 2022). “Now greater than ever, there’s a have to spend money on a consolidated know-how platform with an apparent ROI,” says Michael Johnson, vice chairman of enterprise consulting at Deposco. “Particularly in case you’re counting on automation to assist shut the labor hole, it’s crucial to have the ability to predict and measure ROI earlier than investing in a system or resolution.”
– The transportation/logistics labor scarcity creates the necessity for tech. Provide chain executives anticipate this crucial employee deficiency to affect their capacity to ramp up for peak season in some ways. For greater than 4 out of 10 respondents (43%), it should speed up know-how investments (versus solely 11% final yr). These investments embody tighter integration with provide chain methods and different crucial options like automation, wearables, synthetic intelligence (AI), and augmented and digital actuality (AR/VR).
– Hiring is not as necessary as upskilling individuals. Final yr, 30% of provide chain executives centered on using new staff to deal with peak season. This yr, solely 8% identify hiring as a precedence. As a substitute, it appears to be taking a again seat to digital upskilling amongst present staff. Upskilling is the highest precedence for almost two in 10 leaders (18%), up from solely 4% final yr.
– Prime Day is now a peak occasion. “Peak season is not simply the vacation season,” says Josh Lett, senior vice chairman {of professional} providers at Deposco. For 75% of executives, Amazon’s sitewide sale is now thought of a peak occasion. Whereas Prime Day might contribute to an extended peak season, it additionally presents retailers, wholesalers, and 3PL/4PL companies with a follow run — an opportunity to check new processes and know-how earlier than the sustained peak begins later within the yr.
“This analysis serves as a peak season ‘boot camp’ for provide chain execs trying to simplify provide chain, pace worth, and adapt to progress,” stated Johnson. “This peak season is especially unpredictable, as we’re all nonetheless making an attempt to outline expectations following the unprecedented achievement challenges during the last three peak seasons.”
