What’s the key to a successful peak season? According to Trax Technologies, it’s data insights—specifically, insights gleaned from freight audit and payment (FAP) data.
Trax, a developer of transportation spend management (TSM) solutions, says the data collected via the FAP process can help shippers forecast for supply chain peak season and develop a strategy for minimizing inefficiencies, risks, and costs. Among other benefits, the effective use of transportation-related cost data—including freight, fuel, and surcharge expenses by mode of transportation and service—permits a deep dive into how companies can more accurately forecast and optimize shipping before, during, and after peak season, Trax says.
That might be particularly important in 2023, when holiday sales spikes are expected to be less dramatic than in past years, due to changes in consumer spending behavior and initiatives by retailers to spread out the peak season by offering discounts and incentives in the weeks preceding the traditional holiday rush.
“As supply chain leaders hold out hope for this year’s peak season, they are evaluating the impact of inflation on consumer spending, therefore making accurate forecasting more strenuous than in the past,” Steve Beda, Trax’s executive vice president of customer success, said in a release. “Getting it right requires good data, and utilizing transportation data will be crucial for success, in addition to nurturing good relationships with carriers and suppliers. The better your data, the better your decision-making processes. Accurate forecasting including the ability to order early, mitigate overflow and stockouts, and maintain your transportation costs at a competitive level of service is key.”
Gartner, Inc.