Can Logistics Giants Keep Up with The Holiday Demands?
Hundreds of millions of people anticipate Christmas every year, often dubbed the big break and the time of festivities, family unions and excitement. What is Christmas if Santa Claus doesn’t show up though? Logistics companies are the Santa Claus of the real world when Christmas is around the corner. People buy presents and hope they’ll reach their way under the Christmas tree just in time, for their loved ones, but logistics companies fail to deliver this duty in a timely manner.
Back in 2014, Amazon, one of the biggest logistics retailers in the industry, had to refund shipping costs to the disappointed customers due to delayed shipments. They even handed out $20 gift certificates as a form of compensation. Holidays are peak seasons for shipments and freights increase several times over. Amazon isn’t the only one to be confronted with the likes of untimely delivery in holiday season, many other companies fall into the same trend. For UPS and FedEx, it seems that the overwhelming shipment demand is almost always unprecedented.
It’s not too hard to understand the uproar of the many awaiting customers who had their deliveries arrive a day late, missing the Christmas time. In 2013, the delivery rate for UPS was an unacceptable 83% while FedEx was not in too good a shape either, with a delivery rate of 90%. It’s clear that delivery companies are swamped with orders during holiday season. Christmas presents aren’t really the kind of thing people would want to take a risk with. UPS and FedEx can’t cope with the massive surge in e-commerce order volumes during holiday seasons.
Let’s take a look at some of the steps both of these companies took to address this issue.
Reallocation of staff: UPS made some changes in the distribution of their staff. The major influx of ecommerce orders meant that their shipping hubs will be chaotic, which needs to be met with some order. UPS relocated many of their staff members from their headquarters and other offices to the shipping hubs to provide extra help with the high volume of shipping orders.
Changing promised deadlines and guarantees: You shouldn’t make promises you can’t keep. UPS and FedEx seemed to have realized this now, but with a twist. Both of these companies have increased the expected delivery windows on routes experiencing high traffic. They have also removed guarantees as well as refunds for the busy weeks. The mantra that both of these logistics giants seem to follow is you can’t disappoint customers when you remove their expectations.
Increase in sorting hubs: Both of these companies have taken up temporary hubs in locations they were needed the most during the holiday season to keep the whole ordeal to a minimum; however, there was no increase in the number of staff members though. Maybe the lack of man power was the culprit for untimely delivery.
Instead of turning to large international corporations to carry out your delivery, companies like Frost Dubai Truck seem to be a more reasonable choice. Their temperature regulated trucks are capable of delivering your goods, as fragile as they may be, in a timely manner and at an affordable cost too.