October 21, 2020

Growing and Volatile Demand

In our new normal environment, consumer demand has been unpredictable, peaking, and plummeting by category on a rolling basis. Panic-buying earlier in the summer of 2020 increased shipping volumes seemingly overnight and they have continued to fluctuate as the uncertainty of the virus and the change in seasons puts pressure on retailers heading into Q4. Not only has shipping frequency increased, but consumers have changed the way that they expect to receive their goods. Specifically, same-day store pickup and curbside service have become more commonplace, while a surge in final-mile delivery and overall e-commerce activity remains consistent.  Retailers in all verticals have been forced to explore and support these options at scale, which can be a costly experiment during a fragile time for many.

 

Shipping Challenges from Legacy Systems

Making matters more difficult, these modes – in-store pickup, curbside pickup, and deliver from store – typically operate independently from one another, are handled by separate service providers, and lack a unified process to seamlessly scale capacity up, down and between them to meet volatile market demand.  Ultimately, the cost of this silo approach shows up in inventory.  Stores can’t easily access inventory from other in-market locations to service this new demand.  As a result, most retailers are overstocking all stores.   While this may be the right choice in the short term, it’s not sustainable.  Retailers need a final-mile delivery partner who can help ensure the right products still get to consumers how and when they want them, including the ability to move in-store inventory around a market throughout the day to maximize efficiency. 

Fully Integrated Solutions from USPack

USPack offers retailers the unique opportunity to consolidate these methods of commerce under a single transportation provider. Our complete retail service offering includes Deliver From Store, Pool Distribution, Parcel Delivery, White Glove Service, and Inventory Repositioning. These solutions enable our partners to properly forecast and manage inventory and make nimble adjustments to their strategy – whether it’s a shift from heavy e-commerce promotion to a push for in-store pickup,  without any downtime. In addition, our cutting-edge technology suite provides easy-to-interpret performance metrics to help retailers to make data-driven decisions about their business and actively monitor changes to their operations.

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