Are you locked and loaded?
With Black Friday and the Christmas high season barreling down at us, businesses are preparing to navigate the operational demands that stretch through New Year’s. From hiring seasonal staff to ensuring the availability of products and services, the holiday season brings unique challenges that require attention to a myriad of details. But while focusing on the present season is crucial, many companies overlook the long-term strategic planning that can make future holiday seasons a lot easier to manage.
A forward-thinking approach to holiday operations planning—considering not just the current season but also 2025, 2026, and beyond—can be transformative. By strengthening supplier relationships, investing in automation, fostering employee engagement, and building resilience through cross-training and upskilling, businesses can establish a foundation that makes each successive holiday season smoother than the last.
The 2024 Holiday Operations Checklist
Before discussing the advantages of long-term planning, it’s worth reviewing the fundamental checklist for managing holiday operations in the short term. For the 2024 season, businesses need to address several critical areas:
Staffing and Labor Management: Hiring additional seasonal staff to manage the holiday rush is often a necessity in retail and sectors that support it. Companies should plan holiday schedules well in advance, account for expected and unscheduled absenteeism, and ensure their workforce is ready to face peak holiday demands.
Supplier and Customer Communication: To avoid disruptions, staying aligned with suppliers and customers on their holiday schedules is essential. High-volume retail distribution centers turn into holiday beasts, with inbound product demands peaking while surging outflows of residuals such as empty pallet cores can quickly jam available trailers and dock space.
Removals need to be handled in a coordinated fashion with recyclers and rental service centers - which may be operating on restricted opening times. The better a company understands the availability of its suppliers and customers, the better it can plan for potential supply chain bottlenecks.
Demand Forecasting and Inventory Management: Estimating customer demand is crucial to managing inventory levels effectively. Using historical data, trend analysis, and sales forecasting tools can help ensure that the right products are on hand to meet customer needs.
Safety Stock and Order Fulfillment: High order volumes require greater levels of safety stock to minimize stockouts. Additionally, planning for an uptick in order fulfillment capacity ensures timely deliveries and happy customers during the holiday season.
Crossdocking and Direct Delivery: Distribution centers can take pressure off by creatively using crossdocking and direct delivery tactics.
Rather than inducting high volume products into inventory and following the regular picking process, savvy operators will stage trailers of those inbound goods at the shipping docks and then just cross dock from that trailer onto the outbound load going to the retail customer. Alternatively, if store orders are substantial, those unit loads can skip the distribution center entirely and get delivered directly from the shipper to stores. The name of the game is taking pressure off the regular warehousing and distribution system.
Managing Site Closures: While the retail sector will be going full throttle, many manufacturing plants plan Christmas closures to give employees extra time off. It can also be an opportune time to schedule maintenance activities. Don’t forget to coordinate plant security, and if you have inventory ready to go on trailers, be mindful of the risk of cargo theft.
This typical seasonal checklist provides a foundation for efficient operations during the holidays. However, companies can take holiday preparedness to an entirely new level by focusing on year-round strategies and looking ahead to future years.
Long-Term Holiday Operations Planning: A Strategic Advantage
While 2024 operations planning may be at the top of the mind, taking a longer view will better equip businesses to handle seasonal challenges in the future. Here are several key areas where a proactive approach can make an enormous difference.
1. Building Stronger Relationships with Vendors, Customers, and Transportation Providers
Establishing open lines of communication and building trust with vendors, customers, and transportation providers create a strong foundation for managing holiday demands. When a business already has this network of trust and communication in place, it is far easier to negotiate or coordinate last-minute changes in holiday scheduling.
For example, companies that have built close partnerships with their transportation providers will find it easier to secure priority during peak times. Vendors may also be more flexible if they know they are working with a reliable partner that communicates needs in advance. By taking a long-term approach to these relationships, companies can rely on partners who are willing to go the extra mile during holiday seasons.
2. Employee Engagement and Workforce Resilience
Employee engagement directly impacts seasonal success. Businesses that take time to build a motivated, engaged workforce benefit from employees who are more responsive to the company's needs over the holiday season. One of the biggest challenges during this period is unscheduled absenteeism. However, an engaged workforce—one that feels valued, supported, and connected to the company’s mission—is more likely to show up and perform when it matters most.
Long-term investments in employee engagement can also foster a more resilient workforce. Companies that prioritize regular engagement activities, career development opportunities, and recognition programs will find it easier to build loyalty and motivation among their staff, reducing turnover and absenteeism during peak periods.
3. Cross-Training and Upskilling for Greater Flexibility
The ability to pivot quickly during high-demand seasons is essential, especially when employee attendance can be unpredictable. Cross-training and upskilling employees is an investment that pays dividends during the holiday season. When employees are trained to perform multiple roles, companies are better able to manage fluctuating demands. If one department is short-staffed, employees from other areas can fill in to keep operations running smoothly.
By focusing on cross-training throughout the year, companies create a more adaptable workforce that can easily adjust to changing requirements during the holidays. This flexibility reduces downtime, maintains productivity, and minimizes the impact of absenteeism.
4. Investing in Automation and Advanced Systems
Seasonal surges often require increased safety stock and higher production rates, which can be difficult to achieve without additional resources. By investing in automation, companies can increase their operational efficiency, reduce their dependency on labor, and respond more effectively to demand surges.
For instance, automated storage and order assembly systems enable retail warehouses to dramatically increase storage capacity and order-picking throughput, even within legacy facilities. This boost in operational efficiency is especially valuable during the holiday rush, as it minimizes the need for temporary workers, reduces error rates, and ensures that customer orders are processed quickly and accurately.
Investing in automation requires planning and upfront capital, but it provides long-term returns by supporting higher production rates, reducing labor costs, and enabling more precise inventory control.
5. Continuous Improvement and Proactive Planning
Companies that proactively evaluate and improve their processes year-round are better positioned to meet seasonal demands with ease. By reviewing holiday season performance metrics, identifying areas for improvement, and implementing changes, companies can build on each year’s experience. This continuous improvement approach prevents recurring issues and helps companies develop more effective strategies.
Long-term planning also involves setting up processes to monitor and adapt to changing trends. For example, shifts in customer preferences, advances in technology, and evolving industry standards can all impact holiday operations. Companies that consistently adapt and optimize their processes remain resilient and competitive, even as they scale or face new challenges.
Bracing for the 2024 Seasonal Surge?
Why You Should Be Looking Ahead to 2025 and Beyond
Cont'd on Page 22
November 2024