Preparing For Peak Season – Best Strategies To Meet High Logistics Demand In Summer

Summer in the Philippines can be both a blessing and a bane for businesses due to high logistics demand. When temperatures rise, so do consumer needs for swimwear, outdoor gear, refreshments, beverages, and other seasonal products.

Hence, hotter weather means companies should optimize their logistics operations and systems to ensure that most critical shipments reach the right destinations on time, avoid summertime shipping delays, and prevent summertime supply chain disruptions. From order and shipping surges to handling the complexities of warmer-weather logistics, businesses need to be well-prepared to guarantee customer satisfaction.

FAST Logistics, the leader in end-to-end logistics in the Philippines, explores the factors driving increased logistics demands in the summer season and presents effective approaches to manage them.

Summer In The Philippines

According to the state weather bureau PAGASA,  the climate in the Philippines is characterized by two main seasons: the monsoon season spanning from June to November, and the dry season running from December to May.

Typically, March to May is regarded as the summer season in the Philippines. There’s minimal rainfall during this period, making it ideal for beach trips, outdoor activities, religious events, and regional festivals.

Peak Season: High Logistics Demand In Summer

Summer is regarded as one of the busiest seasons in the logistics industry, alongside holiday seasons such as Christmas and New Year. Here’s why.

Increased Beverage Demand

Summertime signals increased cold beverage demand spikes. As people try to cool off from the heat, beverage production facilities ramp up their output and shipments to supermarkets, convenience stores, and other retail outlets to keep up with the seasonal demand.

Vacations and Travel

As temperatures soar, both locals and tourists flock to beaches and resorts. This surge leads to increased demand for beach essentials such as sunscreen lotions, swimsuits, and goggles, among others. Consequently, shopping centers, stores, and convenience shops must boost their inventory of these items to meet the rising needs. The influx of overseas Filipino workers and balikbayans returning to the country also amplifies the demand for logistics services, as they import a variety of goods and items via balikbayan boxes from their host countries. These boxes typically contain gifts, personal belongings, and supplies and are shipped to different provinces in the country.

Need for Air-Cooling Products

Individuals yearn for home comfort in the face of escalating temperatures and changing climates. As such, there is a seasonal surge freight demand for air-cooling appliances including air conditioners, coolers, and electric fans. Logistics is crucial to guarantee the prompt delivery of these appliances.

Preference for Recreational Items

Summer coincides with the conclusion of the school year. So during these months, companies must also guarantee timely fulfillment of orders on seasonal recreational items like bicycles, swimming pools, and toys for children who are looking forward to their vacation.

Seasonal Products and Promotions

Retailers also roll out grand sales promotions tailored for the summer months to attract more customers. They provide discounts on food and beverage items, summer clothing lines, and outdoor recreational equipment, among others. Consumer activities during summer also increase, a 2010 study shows. The study revealed that exposure to sunlight significantly boosted consumer spending and the amount spent per item. When people are outdoors and socializing more, they are also more inclined to buy gifts for their friends rather than for themselves in warm weather compared to when they are in cold temperatures.

More Infrastructure Projects

During the summer months, infrastructure projects in the Philippines experience a surge in activity due to the favorable dry weather conditions that provide an optimal setting for construction work. This leads to freight demand due to a higher need for transporting construction materials, equipment, and machinery to project sites.

Rise of Home Repair Activities

Filipino families are leveraging the summer season for construction and home improvement activities. Before the dry period transitions into the rainy season, households are rushing to finalize critical repairs such as roof leaks. This surge in repair activities is driving up the need for construction materials, tools, and equipment, all of which necessitate shipping.

Harvest Season and Agricultural Activities

Summer is a bustling season for farmers, with crops ripening for harvest. The dry weather heightens the need for irrigation systems, fertilizers, and other farming necessities. This surge in demand extends to agricultural logistics services like transportation and storage of harvested crops.

Various Festivals, Cultural Events, and Social Gatherings

The summer season in the Philippines is also marked by various festivals and events, such as fiestas, religious celebrations, and cultural gatherings. Weddings, reunions, and other social gatherings are also usually held during summer. These events often require logistics support for transportation, setup, and distribution of goods and materials especially in major cities.

Ways To Prepare For High Logistics Demand

Summer brings a surge in logistics demand. To mitigate volatility and capacity disruptions in supply chains, companies should prepare before shipping surges occur. Below are effective strategies to help you ensure your business not only survives but thrives during this period.

Agile Forecasting and Planning

Forecasting market capacity and strategic planning on supply chains are crucial during peak seasons. By examining historical data, consistent trends, and market activity, businesses can anticipate the surge in product and supply chain demand expected in the summer. This information is crucial for developing a comprehensive strategy to efficiently handle the influx of orders and shipments.

Identify Weaknesses In Your Systems

Evaluate your needs in your current logistics operations to pinpoint potential bottlenecks or weaknesses in the system. Your company should also reflect on how you experience supply chain disruptions and your performance during peak periods. Knowing the weak links in your supply chain and logistics operations will help you address these issues proactively before the peak season to prevent disruptions and delays during the summer shipping months.

Increase Inventory And Expand Warehouse Capacity

A sure way to maximize profit during the summer peak season is to increase your inventory to meet the high logistics demand. Your company may also consider expanding warehouse capacity or renting additional storage space to accommodate the additional stocks. Alternatively, you could optimize the warehouse layout and implement efficient storage solutions to maximize space utilization to make room for outbound capacity demand. Keep in mind that increased volume creates opportunities for the business.

Invest in Temperature-Controlled Storage Solutions

For businesses dealing with perishable goods, investing in temperature-controlled storage or cold-chain solutions is a non-negotiable during summer. It can extend product life and maintain quality, which are critical for customer satisfaction.

Optimize Order Fulfillment Processes

Moreover, your order fulfillment process must be improved for quicker processing. Businesses should embrace automation to maximize lead time and tackle high demand efficiently while maintaining precision. Alternatively, you can introduce a prioritization strategy to expedite the delivery of time-sensitive orders.

Offer Incentives for Early Orders

Your customers can also help you during peak retail season. By encouraging early shopping through incentives or discounts, you can spread out the workload and lessen the risk of being overwhelmed during summer.

Explore Multiple Delivery Options

Customers appreciate choices. Businesses can provide clients with several delivery options such as standard, expedited, or same-day delivery to cater to their unique needs and paying capability. It is also a sure way to manage expectations and foster transparency in delivery timelines.

Expand and Diversify Your Carrier Network

Strengthen partnerships with logistics providers and carriers to ensure reliable transportation services during the peak season. You could also diversify your carrier network to handle different types of shipments more efficiently. As they say, don’t put all your eggs in one basket. Negotiating with multiple providers will provide you with backup options during the peak period when average freight volumes increase. It will also allow you to monitor freight rates and adjust your expenses as needed.

Adjust Dispatch and Delivery Schedules

Summer often means extreme weather conditions. Adjust dispatch and delivery windows to ensure safe transportation, and communicate any changes clearly to your customers to manage their expectations.

Streamline Customs Clearance Processes

If you deal with international shipping, optimize your customs clearance processes to minimize delays. Work closely with your carriers and stay up-to-date on any changes in customs or freight shipping regulations.

Monitor Your Operations with Artificial Intelligence

Businesses may harness the power of artificial intelligence to monitor their fleet in real-time. This helps with route optimization, ensures driver compliance and safety, and allows for quick decision-making should any issues arise.

Retrofit Your Packaging to Seasonal Needs

Retrofit packaging for summer-specific products to ensure they stay cool or unspoiled during transit. This step is often overlooked but can significantly improve the customer experience and reduce losses.

Improve Your Communication Channels

Internal communication is important during peak season to facilitate seamless coordination and timely updates with suppliers, logistics partners, and customers. You should also keep customers informed about any changes or disruptions that may impact your operations and product deliveries. One way of doing it is optimizing your social media or websites.

Enhance Supplier Relationship

Improving supplier relations can help your business with securing additional inventory, preventing supply chain disruptions, and negotiating extended payment terms to help manage cash flow. Strong partnerships with suppliers will also help you receive priority treatment during peak season.

Train Employees or Hire Additional Staff

Cross-train employees across different departments to handle increased workloads and fluctuations during these seasonal surges in demand. Businesses should ensure their staff are equipped with the necessary skills and knowledge to adapt to changing logistics requirements. Moreover, hiring temporary workers or contract-based employees during this busy season is also a reliable way to manage peak seasonal demand. Provide them with clear training and instructions to ensure they contribute effectively to your operation.

Leverage Tech-Based Logistics Solutions

Before the season hits, stress-test your systems and ensure your technology can handle the increase in orders. Regular maintenance checks on your warehouse management software, order processing systems, and websites are crucial to avoid potential bottlenecks or issues.

Be Transparent To Customers

Transparency helps manage customer expectations regarding order processing times, delivery schedules, and potential delays during peak periods. By providing clear and accurate information upfront, businesses can minimize misunderstandings and dissatisfaction. When customers feel informed and aware of what to expect, they are also more likely to trust the business and have confidence in its ability to fulfill their orders efficiently, even during busy times.

Remain Flexible and Prepare A Contingency Plan

Developing an emergency action plan will prepare your team members in the event of unforeseen circumstances. In your plan, identify alternative suppliers, transportation routes, and backup logistics options. But remain flexible and adaptable in addressing issues during peak periods.

Find A Trusted Logistics Provider

If you want to focus on the important aspects of your business without worrying about logistics problems, consider the expertise of third-party or fourth-party logistics companies in the Philippines to manage peak season freight surges well. Outsourcing your logistics needs with a trusted logistics company will empower you to streamline your supply chain and focus on core business areas.

FAST Logistics Is The Top Choice Logistics Provider For Peak Seasons

Summer logistics demand is an inevitable reality for businesses. But with meticulous planning and flawless execution, the peak season is an opportunity for growth.

FAST Logistics Corp., one of the leading logistics providers in the Philippines, acknowledges the logistical challenges that arise during peak season. This critical time calls for precise and efficient planning to ensure success.

With FAST’s expertise in logistics and supply chain management, alongside a steadfast commitment to customer satisfaction, the company is well-equipped to support businesses through this busy period.

FAST has over five decades of industry leadership and an extensive array of warehouse and fleet assets, delivering strategic counsel and holistic end-to-end logistics solutions to trusted brands in the Philippines. Our offerings span transport services, warehousing, distribution, and a suite of value-added services tailored to clients across diverse industries.

To learn more about FAST’s solutions, contact our Solutions Expert or head to https://linktr.ee/fastlogisticsph.