How to conduct a post-peak supply chain review

Why a post-peak review matters 

Australia Post data showed that the 2024 Black Friday, Cyber Monday weekend (29 Nov – 2 Dec) saw record-setting eCommerce activity with a 7.8% increase in online purchases from the previous year. Events like these underscore the importance of well-functioning supply chains to meet demand. 

A post-peak review can uncover areas for improvement, enhance customer satisfaction, and boost profitability for the next big sales period.

Conducting a supply chain review

Supply chain disruptions during peak periods are common but learning from them can strengthen your processes. Focus your review on these areas: 

• Supplier performance: Evaluate key suppliers’ reliability and capacity during peak. Were there disruptions, delays or missed targets? Address these proactively to build a more resilient and agile supply chain. 
• Inventory analysis: Compare forecasted demand against actual sales to pinpoint overstock or stockouts. Correcting these discrepancies can help improve cash flow, reduce waste and even free up valuable warehouse space.
• Order fulfillment: Identify bottlenecks that impacted operations or delivery times. Can these be avoided with better technology or process designs? 
• Supply chain modelling: Consider creating a digital twin to assess different risks and build a stronger supply chain ahead of the next peak season.
• Supply chain analytics tools: Use these tools to gain real-time visibility into bottlenecks and improve coordination among suppliers.

By conducting a thorough supply chain review, you can identify areas for improvement and make changes to optimise your processes for the future.

Review logistics management

Effective logistics management can help enhance your order fulfillment process, reduce costs and improve customer satisfaction. Here’s what to consider in your audit:

• Shipping strategies: Use data to optimise your shipping and fulfilment options. If most orders are interstate, could a third-party logistics (3PL) provider or omnichannel model reduce costs?
• Technology integration: A warehouse management system can improve inventory accuracy, while integrating your eCommerce store with a shipping platform can save time and reduce manual errors.

Conduct a delivery experience health check

A great delivery experience builds confidence and loyalty, and reduces support inquiries. Consider these different elements of your customers’ delivery experience during peak:

• Review customer service interactions to pinpoint common delivery-related issues. Addressing these–such as by providing better tracking or expanding safe delivery options –can significantly boost customer satisfaction. Promoting the AusPost app to your customers will let them track their own parcels without contacting you.
• To reduce carding and improve first time delivery, consider enabling safe drop for eligible parcels or integrating collection points into your checkout. This will let shoppers choose an alternative, secure and convenient delivery location if they won’t be home for when their parcel arrives
• Explore customer feedback to identify trends in delivery expectations, such as preferences for eco-friendly packaging or next-day delivery options.

Conducting a comprehensive review 

First, ensure you have representatives from buying, digital, customer service, IT, marketing, finance and warehouse teams during your peak performance review. Key questions to guide discussions include: 

• What were your top challenges during peak?
• Which marketing strategies were successful and how?
• Did inventory align with demand and sales trends?
• Were orders fulfilled on time?
• Were logistics partners able to meet service-level agreements (SLAs)?
• Was there any customer feedback on the delivery experience and how can we act on it?
• What were your success metrics and how can they evolve?

Optimising for the future

A post-peak review is only valuable if it leads to actionable outcomes. Consider these steps: 

• Demand forecasting: Use data analytics to refine predictions and inventory planning.
• Technology adoption: Automate repetitive tasks, implement APIs or leverage AI for predictive logistics.
• Ongoing training: Equip teams with the tools and knowledge to handle peak challenges more effectively

By conducting a thorough post-peak supply chain review, you position your business to exceed customer expectations and thrive in the next sales cycle.

This article was originally published on 30 January 2024 and has been updated with new information.