How Retailers May Have the ‘Perfect Storm’ of COVID, Peak & Brexit

How Retailers May Have the ‘Perfect Storm’ of COVID, Peak & Brexit

The events of this year have really tested the resilience of retailers and their supply chains. Unprecedented levels of demand worldwide due to the COVID-19 pandemic meant that stock ran out quickly and left many retailers unable to fulfil their orders. Delivery took a big knock too. Many carriers experienced delays, stopped taking on new customers or limited their services, meaning parcels rapidly piled up in warehouses.

With the end of the Brexit transition period nearing and the pandemic still on-going, more turbulence is expected. And whilst many customers gave retailers the benefit of the doubt at the start of the year, failure to offer a good delivery experience going forward could result in shoppers going elsewhere.

Widening your network of carriers and suppliers

Perhaps the biggest lesson retailers can take away from this year is to reduce risk by widening their network of suppliers and carriers. Border closures have been commonplace during the pandemic, leaving those who relied on single suppliers with no access to additional stock. While a total freeze on supply is unlikely when the Brexit transition period ends, it is a much safer bet to widen your supply base so you can order stock elsewhere should there be any hold-ups or delays.

The same applies to your carriers. Relying on more than one carrier fulfil your shipping requirements means that you have the flexibility to switch carriers should they come up against any problems or need to limit their services. Not only will a multi-carrier strategy ensure you have back-up should you need it - but working with multiple carriers gives you the opportunity to select the best mix based on your products, budget and customers.

Technology to improve warehouse productivity

Once you have your mix of carriers and suppliers you want to ensure your shipping process runs as smoothly and efficiently as possible. As Brexit approaches this should include making sure that your shipping platform is set up to handle customs data. This way you can be certain you are providing your carriers with the right information so your parcels will clear customs with no unnecessary hold-ups.

When your parcels are safely on the move, you will want to ensure there are no hiccups along the way. Investing in a shipping platform which gives you a quick and comprehensive snapshot of all your shipments will mean you can spot potential issues as they occur and resolve them before they become a bigger problem. This increased visibility will help when it comes to returns too. Returns are notoriously problematic for retailers, primarily because there is so little information around them. Not only that, but they cost retailers up to £60bn per year!* Shedding light on the process will give you a better grasp over who is returning the item and why, meaning you can provide a quicker outcome for the customer, get sellable items back out to market sooner and protect the bottom line.

Customer winning deliveries and returns

Whilst consumers had more patience in the early days of the pandemic, they may not be so forgiving in the future. As more retailers move large parts of their businesses online, competition is set to be bigger than ever. A bad offering could drive customers away. Retailers must not only protect final mile delivery for their customers but use their delivery and returns process as a selling point. This is where a multi-carrier approach is an additional benefit as it means that retailers can offer more options to their customers, such as same day, next day or deferred. Better tracking of your shipments also means that, with the right technology platform, customers can log in and track their item themselves, giving them the re-assurance they need and alleviating the amount of queries you will need to handle.

Lessening the burden of multi-carrier management

Meeting ever-increasing customer demand while maintaining stock levels is a juggling act in itself - let alone during a global pandemic with Brexit on the horizon. Retailers can help mitigate this risk by relying on a wider network of carriers and suppliers to meet their shipping needs. This means they will not only have back-up should they need it, but they will be able to offer a more bespoke and flexible service for their customers. 

Managing multiple carriers and implementing the technology needed can be expensive and time consuming, especially for those operating on tighter margins. This is why GFS are helping to level the playing field by offering cost effective multicarrier management solutions to businesses. For one affordable fee, GFS can take the headache out of managing multiple carriers by doing so on your behalf - leaving you with only one relationship and cost to worry about. With carrier services spanning across 195 countries, retailers can rest assured they are providing a localised, tailored experience to their national and international customers regardless of what the future holds.  

*IMRG returns review 2020