A new survey conducted by Supply Chain Dive’s studioID in collaboration with Deposco explores the challenges and expectations expressed by retailers, wholesalers and 3PL/4PL firms for 2024’s peak season.

This year marks the third annual version of this survey, in which supply chain executives share how prepared they are for peak season — and how their priorities, concerns and obstacles have evolved over the past year.

In addition to the Annual Peak Season report, Deposco is conducting Peak Season Readiness Assessments to help companies identify areas of improvement that can be put into action immediately, while developing a long-term plan for making peak season a low stress / high value event. To qualify for your Peak Readiness Assessment, click here.

Five significant peak season 2024 findings from the survey include:

1. Peak season is getting harder, not easier. According to the survey, 77% of supply chain executives expect this year’s retail peak to be more of a struggle than it was in 2023. 

Bill Gibson, Deposco CEO, notes that this could be due to ongoing concerns about inflation, labor, the election year and reduced consumer spending. “If you don’t start to grow a thick skin and anticipate difficulties after you struggle for a few years, then you’re in for surprises,” he adds. “Some of this year’s response is likely due to scars from recent challenging years. But companies still struggle tremendously on the operating and execution sides. Plus, supply disruptions haven’t gone away.”

2. Areas of focus for supply chain leaders haven’t changed in the past year. For the last three years, supply chain leaders have struggled with the same three business and operational issues:

• Inflation: 98% expect inflation to impact peak season by influencing business costs, living costs and consumer purchasing power.
• Labor: Respondents are prioritizing two approaches to temper labor concerns, with 51% deploying more automation and 51% hiring temporary workers.
• Transportation/logistics: 96% expect ongoing labor shortages in transportation and logistics to negatively impact their ability to ramp up for peak season 2024.

3. Top peak season concerns revolve around the customer experience. Supply chain leaders want to make sure they can give consumers what they need — when and how they need it. At the top of their list of concerns for peak season 2024 are delivery delays (41%), rising consumer expectations (37%) and escalating pricing (35%).

4. Peak season challenges rise, but so does confidence. Despite the expected difficulties ahead, supply chain leaders are confident in terms of performance against their competition (87%), meeting customer expectations (93%) and the capabilities of current fulfillment systems and technologies (100%). 

“In some cases, the contrast in survey responses is shocking when you analyze how supply chain leaders report their confidence levels along with their anticipated challenges and concerns,” Gibson says. “Sometimes, overconfidence can be symbolic of insecurities. It’s hard to at look yourself in the mirror and say, ‘We’re not as prepared as we could be.’”

5. Leaders recognize the impact of a warehouse management system (WMS) on peak season success. For most respondents, investing in a modern WMS or order management system (OMS) is crucial for peak season success: 86% plan to invest in more modern WMS software or OMS software this year to prepare warehouse operations for a more profitable peak season. They plan to use it to:

• Consolidate data/systems across channels and locations
• Manage customer service
• Improve delivery/fulfillment speed
• Alleviate labor issues
• Improve inventory/order accuracy

Download the full report to explore additional information and details about the survey results.  

Get your Peak Season Readiness Assessment from Deposco here.