Cyber sales season guide to overcome warehouse capacity constraints & provide faster delivery
Demand spikes created by cyber sales and other peak seasons makes scalability essential. Logistics providers need to offer online ordering, streamlined order fulfillment, and faster dispatch. CartonCloud provides seamless WMS/TMS software for SMEs.
It’s the most anticipated sales season of the year. For logistics operators, the cyber sales online shopping frenzy brings increased demand, warehouse capacity concerns, and accelerated last-mile dispatch expectations.
According to Shopify’s recent report, the Future of Commerce, 60% of global consumers expect same, next, or two-day delivery — and with online sales across Black Friday and Cyber Monday expected to soar for another year, this trend means 3PLs are expected to handle their highest volume of the year, with their fastest delivery timeframes.
For many direct-to-consumer brands, the cyber sales season accounts for the majority of their yearly sales. In the USA, cyber sales between Black Friday and Cyber Monday alone account for 20% of online sales from November to December 30th. The stakes are high, and those partnering with a 3PL provider to outsource their logistics will be looking for a 3PL provider who can offer online ordering, order tracking, and fast fulfilment.
Logistics providers need to offer online ordering, streamlined order fulfillment, and faster dispatch, while coping with increased demand. Many brands will anticipate higher-than-usual sales for the season, and will be looking to increase the stock on hand, requiring increased warehouse capacity. They need the ability to accept integrated online orders, train their team easily, ensure accuracy, and optimize their processes for faster order fulfillment. Here’s how.
Meet demand, delivery expectations, and omnichannel ordering this cyber sales season, with an integrated cloud-based WMS.
All growing 3PL warehouses need a scalable system, allowing them to easily ramp up operations without compromising accuracy, quality or speed. Demand spikes created by cyber sales and other peak seasons makes scalability essential.
Online ordering must be integrated from their customer’s Shopify or other online stores, directly to their WMS, allowing instant order updates and accurate order placement without middle handling. There are estimated to be 12-24 million e-commerce sites in the world, with new online stores opening each day, the majority of which are powered by Woocommerce or Shopify.
Their warehouse system also needs to be easy to use, and easy to train new employees. This way, seasonal workers can come on board for peak demand seasons, and pick up processes with ease. They can begin fulfilling orders faster, with higher accuracy — allowing the warehouse to be reactive in taking on new business. (An easy-to-use system is also a huge benefit towards staff enjoyment and can even help with warehouse staff retention.)
Finally, order tracking and system integrations with transport partners is essential to ensure seamless dispatch and delivery. Cloud-based 3PL software like CartonCloud also provides greater oversight for 3PLs and their customers, with automated data tracking in real-time.
This peak season, don’t reduce prices— win business by giving your customers more for less.
This cloud-based WMS software gives the ability to integrate directly with online ordering for faster and more accurate orders, transparency and order tracking, and simplified reporting they can access at any time, from their own customer portal.
You can also use your WMS software to help overcome warehouse capacity issues with clever storage options (FIFO, or high racking storage for low-volume goods), identifying stock replenishment for faster picking, or implementing wave picking for fast-moving goods.
Warehouses looking to increase their use of space may also offer cross docking for faster handling and dispatch, or use multiple warehouses or storefronts as stock depots to reduce last-mile distance. After the last two years of restrictions, this cyber sales season in-store footfall is forecast to increase, rising gradually back to pre-pandemic levels. Not only this, but storefronts can be used as local warehousing depots as well, allowing faster last-mile dispatch, or in-store pick-up, for those who use integrated cloud WMS systems for omnichannel ordering.
A report of Shopify store merchants found between January 1, 2021 and September 30, 2021, app installs for warehouse management grew by 198%, while app instals for order and shipping reporting grew by 53%, compared to the same period in 2020.
With greater digital adoption, software integrations between retail and logistics providers is essential. CartonCloud is a cloud-based warehouse and transport management system software provider, delivering easy-to-use systems to 3PL warehouse and transport operators globally. The powerful platform has built over 10k integrations for their customers, allowing seamless data flow between systems for transparency and accuracy across automated workflows.
With over 23,000 active daily users, the software company is expecting to see major spikes in warehouse order fulfillment and transport consignments over the next two months.
“It’s about equipping our customers to have the ability to offer more, with lower overheads, less time, and with the resources they have on hand. Our system simplifies complex logistics, doing the heavy lifting with data and workflow automation, to make their lives easier,” CartonCloud CEO Vincent Fletcher said.
“Our user-friendly mobile app is so intuitive, they can bring on new staff and train them in minutes, with ensured accuracy through barcode scanning, and order tracking transparency delivered directly to their customer’s portal. It removes tedious admin, reporting and data entry, and literally gives them the ability to increase what they offer, without any headaches.”
With the rise in e-commerce continuing, and more brands looking to outsource logistics, a gap in the market is opening for 3PLs who can offer more to customers.
To find out more about CartonCloud’s powerful, integrated WMS/TMS, visit www.cartoncloud.com
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.