Unequivocally, every year while most of the UK population embark on a holiday, the logistics and haulage industry are ruthlessly planning for peak season as well as continuing to deliver fulfilment during the summer holidays. However, this poses the question, how do the school holidays impact logistics?
X2 takes a closer look at how the industry deals with spikes in demand as well as shortages in service providers over the summer holiday season.
What happens to the logistics industry over the summer holidays?
Unsurprisingly, there are consistencies every year with how the logistics industry is impacted by the summer holiday season.
The headlining impacts are as follows:
Service shortages
Amazon Prime Day is but one example of a high turnover day during the summer holidays. Having fallen on the 11th July this year, Amazon Prime Day has logistics companies jumping at the spike in demand. Amazon has an average hourly purchase of 66 thousand items. This figure increases by 47% over these promotion days.
This is just one example of how even though many of us are enjoying a break from work, logistics companies are having to face high turnover challenges that simply don’t relent just because it’s the summer holidays.
Demand spikes of seasonal products
Obviously, there are some spikes in certain products over the school holidays which influence the scalability and delivery patterns of businesses.
Products that are commonly in more demand are as follows.
BBQ equipment and outdoor living furniture are on the rise
A perfect example of how the market is influenced by cultural trends was King Charles’s Coronation which saw a massive 9.6million BBQ’d events in the UK in one day.
In the lead up to the coronation, the majority of the nation bought flags, decorations, food and drink to celebrate the bank holiday.
Logistic management dealing with these types of commodities would have had the foresight to comprise a plan that could withstand the spike in demand around these particular products.
Given that the coronation was an extraordinary cultural event, the fulfilment of regular summer supply and demand continues on. There’s an annual demand for outdoor garden furniture and horticultural products which are seasonally purchased and hauled across the country throughout the summer months.
Back to school is big business
Retailers know too well that midsummer means back to school business. Hauling products such as uniforms, stationary, books and snack foods is expected around this time period.
With the average spend on a uniform per child per year being £93, companies are keen to cash in on having their products ready for purchase in store and online for the consumer. This ability to fulfil the expected demand of the market means that companies are using intelligently strategized logistics to curb any unforeseen gaps in the supply chain.
From a lack of manpower on the ground to an unforeseen spike in a certain region, companies are keen to work with logistic providers who can remain agile and reactive to deliver those all important and profitable back to school products.
Fashion and cosmetics spend more on logistics
This 37 billion pound industry has nourished the UK economy. With year on year growth, the cosmetics industry has moved gradually away from mass producing cheaper products at a lower price to incrementally focusing on using raw materials that are more nationally produced.
Furthermore, cosmetic brands are paying more attention to their logistics. Where they are spending more on raw materials, they are hungry for tighter and more effective logistics to deliver their products.
With products such as sun cream, fake tan, after sun and baby products peaking over the summer months, companies need logistic providers who have visibility over the new extended supply chains.
The volatility of the cosmetic industry means that scalability and flexibility are at its core. With access to raw materials being hugely competitive and with the constant fluctuation of technology being invented and favoured, companies are drawn to logistic solutions that understand the industry and its constraints as whole rather than just providing a faceless service.
What are the key impacts as a result of the summer holidays?
Considering the impact of these seasonal trends sits at the core of what we provide at X2. We’re not just a solution, we’re reactive and forward thinking due to our experience and knowledge of seasonal trends.
The main impacts any supply chain will face over the summer period are seen here:
- Lack of local resource
The rise in demand for certain products stretches the resource available locally. Whereas before some companies could lean heavily on local providers, Brexit has drawn a parameter around local logistic companies and increased their workload accordingly.
Companies could look to feel the pinch of delays which impact the operating costs. In addition, they’ll see overtime costs and possibly fines which are incurred by late deliveries.
Worst of all, you look to fundamentally damage the reputation between you and the customer.
To continue best practices over the summer holiday get in touch with us at X2 and minimise any unforeseen impact on your supply chain.
- Increase distance to end user
A simple but essential point is to consider distance and how that impacts timings on the delivery of a load. With less resource, hauliers are set distances which are considerably further away. Longer drops means there are more costs incurred.
- Increased employee holidays
A lack of presence from transport and logistics managers, familiar warehouse managers and general warehouse manpower impact the speed and efficacy of every element of the supply chain.
Considering the absence of many of these essential roles over the summer period, there is an inability to be flexible when demand is high and service is low. By having a national 4PL expert on your side means you’ll be able to draw on their multiple service contacts rather than place all your eggs in one basket and suffer a summer loss.
How are we, at X2, impacted by the summer holidays?
“We know that during school holidays volumes can increase on a regional basis whilst leaving gaps in others. Customers that rely on backhaul resource can often be exposed. Hauliers use more agency labour during holiday periods that can increase your costs. X2 have the resource to minimise the impact of such cost increases.”
– Vic Faulkner, operations director at X2.
Stay ahead of the summer holidays with X2
Get in touch with our highly experienced team at X2 and tell us about your requirements today. Allow us to take the stress of logistics away. From fast reactive transport solutions to long term considered contracts that improve your profitability X2 is here to help today.