Will Workforce Shortages cause Peak Season Chaos

Workforce shortages are affecting three quarters of logistics companies. With peak season fast approaching, what steps are being taken to avoid customer disappointment asks Andrew Tavener (pictured), Head of Marketing, Descartes?

Peak Performance

Supply chain performance is being undermined by an endemic lack of staff – with 37% of companies experiencing high workforce shortages. The biggest problems are in transportation operations, closely followed by warehouse operations, and the impacts are being felt throughout the supply chain, from financial performance to customer service.

Staff shortages cause pressures throughout the year, but the problems are highlighted during peak season. Black Friday only works as a great opportunity to offload discounted stock, for example, if the fulfilment process is super-efficient. Any problems, from inaccurate picking to product damage or delivery errors, will rapidly wipe out any margin on a discounted item. The success of the Christmas buying frenzy depends, obviously, on customers receiving goods before 25th December – missed or late deliveries will lead to a massive spike in new year returns, refunds and product write-offs.

Add in the potential loss of customers following bad experiences and inefficient fulfilment can wipe out the vital revenue boost retailers demand from peak season.

Avoiding Mistakes

Stressed people inevitably make mistakes – and understaffed warehouses and delivery teams are often under pressure, especially when demand spikes. With no signs of the workforce shortages abating, how are companies looking to improve fulfilment and deliver an optimal peak season customer experience?

Scaling up to meet additional demand is becoming harder year in year due to the lack of available staff and so automation has become a priority – 58% of firms say senior management believe technology is key to mitigating the impact of the current workforce market. By prioritising both driver performance and warehouse operations, companies are looking to eradicate the repetitive, time-consuming tasks that deliver little added value and put enormous pressure on staff during peak seasons.

Improving driver productivity has an immediate impact on delivery capacity and, as a result, customer experience, with companies exploring innovations in areas such as delivery route optimisation (54%) and driver mobile productivity (45%).

Knowledge Workers

Companies are not only struggling to recruit and retain warehouse and delivery staff; in fact, knowledge worker and manager positions are the hardest to fill. With 58% of companies confirming that workforce shortages have impacted customer services, they are turning to automation. Tools such as real-time shipment tracking can release knowledge workers from time wasted chasing information to focus on the analysis and planning required to optimise the business.

Real-time shipment tracking also meets customer expectations for shipment visibility – and, by providing automated updates, a company can eliminate highly manually-intensive calls and emails and release pressure on customer service teams.

Improving automation not only reduces the stress for existing employees – and hence cuts the risk of errors that can damage the customer experience – it can also play a vital role in improving recruitment. Workers are not attracted to tedious, repetitive work and highly manual working environments are a serious deterrent, especially for millennial and Gen Z workers. Investing in workforce skills and providing an automated working environment that allows individuals to embrace added-value tasks enables organisations to improve recruitment and retention, and create a workforce with the capacity to respond effectively to the demands of peak season.

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New Contract Enhances Delivery Efficiency

Facing significant challenges with transatlantic deliveries and the need to uphold its reputation for delivery reliability, Camira Fabrics, a leading UK textile manufacturer, has signed a contract with DB Schenker to enhance its airfreight logistics operations. The contract which commenced this summer has allowed Camira to streamline its supply chain, maintain delivery speed, and capitalize on new business opportunities.

Camira Fabrics, headquartered in Yorkshire, produces upholstery and panel textiles for diverse sectors including commercial, education, healthcare, hospitality, and passenger transport. With over eight million meters of fabric in transit annually, the company relies on rapid, dependable delivery to meet critical project deadlines.

A strategic review of Camira’s logistics, driven by recent external challenges like Brexit, COVID-19, and rising global costs, revealed potential opportunities to optimise its distribution process. This led to the partnership with DB Schenker, which developed a customized Standard Operating Procedure (SOP) to address these challenges.

Jonathan Pemberton, DB Schenker’s Airfreight Business Development Manager, UK & Ireland highlighted the collaborative approach between the two companies: “Through meticulous planning and a shared vision, we have demonstrated a commitment to innovation and efficiency. This alliance and contract not only streamlines operations but also sets the stage for growth.”

The partnership has delivered significant benefits for Camira, including improved visibility, faster delivery times to the US, and integrated IT support through DB SCHENKER | Connect. These enhancements have enabled Camira to fine-tune its processes, reduce costs, and maintain its reputation for speed and reliability.

Peter McArthur, Camira’s Head of Projects, emphasized the importance of the partnership: “As a UK textile manufacturer with global distribution to around 70 countries, speed and reliability of delivery are paramount. DB Schenker met our service requirements, offering quick, guaranteed lead times and shipment visibility, all vital in the competitive market we operate in.”

This successful collaboration marks the beginning of a long-term relationship, with DB Schenker poised to support Camira’s ongoing global expansion and operational efficiency.

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Hyster Impact Live Showcases Clean Power

From 8th to 10th October 2024, Hyster dealers and customers from across Europe, the Middle East, and Africa (EMEA) gathered at the Hyster test centre in Weeze, Germany, for Impact Live – a three-day event demonstrating how Hyster is ‘Powering Your Possibilities’ with equipment, solutions, and support to overcome challenges in tough industries.

Attendees had a special opportunity to experience a wide range of dependable Hyster equipment and learn how it supports the specific needs of different industry applications, such as those in ports and terminals, the paper supply chain, and heavy industries such as wood, steel, and construction. It also presented an ideal forum for dealers and customers to have conversations with Hyster experts on how to scale available solutions to their unique handling requirements.

Innovative Lithium-Ion Solutions Previewed

A highlight of Impact Live 2024 was the preview of lithium-ion battery-powered trucks, emphasising the company’s commitment to delivering Clean Power that Means Business. For example, attendees had a chance to get up close with the Hyster® J10-18XD electric lift truck series, engineered for ICE-like performance in heavy-duty applications and lifts up to 18 tonnes.

“At Hyster, we are committed to helping operations overcome their most demanding challenges, with an appreciation that sustainability is of ever-increasing importance to many businesses across EMEA,” says Robert O’Donoghue, Vice President of Marketing EMEA, at Hyster. “This event was a great opportunity to showcase how matching the right clean power solution, with the right application, means there is no need to compromise on performance or productivity.”

With a focus on power, exclusive event sponsor EnerSys also presented its range of energy storage solutions for the range of Hyster equipment and showcased the benefits of its NexSys Thin Plate Pure Lead (TPPL) battery technology for demanding materials handling operations.

Heavy-Duty Demonstrations

The event also featured live demonstrations of some of the most powerful Hyster equipment, including Reach Stackers and empty container handlers. These not only showed their robust capabilities in ports and terminals, but addressed how Hyster trucks can tackle specific challenges, from shrinking margins to digitalisation and how the lowest Total Cost of Ownership can be achieved.
In the heavy industry themed zone, attendees got to see a direct comparison between a 12-tonne Hyster ICE truck and its electric counterpart being driven and operated side by side.

Visitors also saw the positive impact of up-to-date Hyster solutions from operator assistance systems to telematics and fleet management. Moreover, Impact Live provided an ideal platform for those using or specifying lift trucks to engage with Hyster and dealer experts to discover solutions that address the unique operational challenges of their businesses.

“Strength and durability are what Hyster is known for, but Impact Live was about more than just showcasing our tough trucks,” says Robert. “By bringing together hundreds of people from both dealers and customers, we had a great opportunity to learn and collaborate, and that enables us to deliver the application-specific solutions that ultimately help businesses succeed.”

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Alternative Fuel Programme to Accelerate Sustainable Logistics

Girteka, the European transport company, has announced its new Alternative Fuel Programme (AFP), a key initiative in the company’s drive to decarbonize logistics operations by integrating HVO fuel into daily operations. This innovative program is designed to help customers reduce their Scope 3 emissions from road transportation by up to 90% compared to traditional diesel.

How the Alternative Fuel Program Works

The AFP is specifically tailored for companies with long-term contracts that are committed to sustainability and looking to significantly reduce their transport emissions. The process is simple – when customers opt for transportation services using HVO (Hydrotreated Vegetable Oil), Girteka utilizes trucks in areas with the necessary infrastructure to refuel with this alternative fuel. The amount of fuel required for the customer’s transport is matched, even if it’s used by another truck in the network. Customers then receive a detailed report showing the emissions reductions achieved through their participation. The program is available to customers with dedicated lanes, excluding spot market services.

“Sustainability is becoming now a core part of corporate strategies,” said Viktorija Terekė, Head of Sustainability at Girteka. “With the Alternative Fuel Programme, we offer our customers a reliable and transparent way to reduce emissions, without requiring them to redesign their existing supply chains.”

Benefits for Customers

Participating in the Alternative Fuel Programme brings several benefits:
• Emissions Reduction: Up to a 90% reduction in emissions compared to diesel, helping customers meet EU climate goals.
• Transparency: All transport is traceable, with fuel and emissions data available for audits and sustainability reporting.
• Certification: The fuel used is certified by suppliers, ensuring full traceability and transparency.
• Corporate Reputation: Companies benefit from enhanced public perception, as consumers increasingly prioritize products transported with lower emissions.

At the core of Girteka’s Alternative Fuel Programme is a rigorous emissions calculation methodology based on the GLEC framework. This ensures that emissions reductions are accurately measured, making the data trustworthy and audit-ready.

“Our calculations are directly tied to each transported load,” said Terekė, “We can show our customers exactly which truck was used, when it was refueled, and with what kind of fuel. Each refueling transaction is fully certified by our fuel suppliers, so there’s no room for guesswork.”

A Transparent and Scalable Approach to Emissions Reduction

Unlike Book & Claim programs or mass balancing, Girteka’s AFP is an intermediate solution that offers both the traceability of direct emissions reductions and the scalability needed for larger operations. Similar initiatives in the aviation and ocean freight sectors focus on balancing emissions without the same level of direct impact.

One of Girteka’s strategic partners has already integrated the AFP into its operations. “We were looking for ways to reduce our transport emissions without disrupting our supply chain, and Girteka’s AFP provided exactly what we needed. The transparency, traceability and reporting of the program gave us confidence, and we’ve been able to significantly improve our sustainability reporting,” said a company representative.

Since its launch, the program has already attracted dozens of similar strategic partners, with interest continuing to grow as more companies recognize the tangible benefits of reducing emissions in a traceable, transparent way. Alternative Fuel Programme is designed to help businesses achieve their sustainability goals while reducing emissions in a practical and transparent way. As the demand for cleaner transport solutions grows, the AFP offers a viable alternative to traditional fuel methods, helping companies make a real impact in decarbonizing the logistics sector.

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[Podcast] Supply Chains: Evolving Risks and the Path to Resilience

In this episode of Logistics Business Conversations, host Peter McLeod speaks with Saul Resnik, CEO of DHL Supply Chain for the UK and Ireland, about evolving risks in the supply chain and strategies for building resilience. Their discussion covers significant current challenges in logistics, including geopolitical tensions, cybersecurity threats, shifting consumer demands, and post-COVID economic adjustments.

Resnik highlights how the logistics landscape has transformed since COVID-19, especially with the rise of e-commerce and the need for companies to adapt to fluctuating consumer behaviors. He notes that many companies expanded their logistics infrastructure during the pandemic, expecting sustained demand that has since leveled off, leading to a surplus of capacity. DHL has been pivotal in offering scalable and flexible solutions to help companies optimise their logistics without overcommitting resources.

The conversation also addresses the logistics industry’s push toward sustainability, a critical issue for businesses today. Resnik shares that DHL has made strides by incorporating eco-friendly vehicle options, including biogas, LNG, and electric trucks, as well as committing to carbon-neutral warehouses. He underscores that while greener solutions often come at a premium, market shifts are making these options more accessible, with costs anticipated to decrease over time.

A key theme in their discussion is the role of digitalisation and AI in logistics. DHL leverages advanced tracking, AI-driven demand forecasting, and automation to enhance visibility across the supply chain, ensuring clients can adapt to disruptions efficiently. Resnik emphasises the importance of thoughtful technology integration, which, when done well, adds significant value and resilience to operations.

In a reader-submitted question, Resnik advises companies facing cost challenges in greening their supply chains to partner with logistics providers capable of scaling sustainable practices, which is increasingly necessary as demand for eco-friendly options grows. Concluding, McLeod and Resnik reflect on the evolving logistics field, noting the importance of customer-centric strategies in maintaining long-term partnerships and a strong market position.

This insightful discussion illustrates the complex, dynamic nature of modern logistics, especially as companies navigate risk, digital transformation, and sustainability initiatives.

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