Did you know that, on average, U.S. consumers say they have 47% finished placing orders for their holiday shopping by Black Friday and Cyber Monday? That means almost half of the people making purchases in the fourth quarter search online and offline from the crack of dawn for doorbuster deals before we reach December. As two of the biggest shopping days of the year for most retailers, it's important to explore the significant impact these days have on commercial vehicle demand.
Being prepared for the increased demand is just one of the factors businesses must consider earlier and earlier each year. In addition, the pressure to deliver goods quickly and efficiently can cause a strain on resources, including costs, staffing, and available equipment.
To keep up, many businesses have had to adapt their operations. This includes investing in new technologies, using trailers as storage, renting out idle vehicles to offset costs, and more. In this blog, we'll explore three ways Black Friday and Cyber Monday are changing the transportation industry and how businesses are adapting to utilize commercial vehicles effectively during this festive period.
The rise of e-commerce has been one of the most significant factors driving changes in the transportation industry during Black Friday and Cyber Monday. As consumers increasingly opt for online shopping, the need for last-mile delivery services has skyrocketed. Additionally, companies that need to move goods to distribution centers where inventory is more in demand to be delivered have also increased. Businesses are looking everywhere for commercial vehicles to fulfill customer orders quickly and efficiently during this holiday season.
According to Capital One Shopping Research, Amazon Final-Mile contractors do same- or next-day delivery for over half of Prime orders in the 60 largest U.S. metro areas during this time.
This trend has businesses turning towards these strategies to increase their operational abilities.
· Fleet Optimization: Companies are finding reliable commercial vehicles to meet the surge in orders using reliable rental solutions like the COOP platform. From trailers to vans, businesses have options to diversify their fleet needs to cater to various product sizes and customer locations. On the flip side, companies have idle vehicles with slower seasonal activity in Q4 that can list them to rent out on COOP. Doing so helps offset costs and increase utilization by allowing trusted businesses to use them when they would otherwise be sitting.
· Leveraging Technology: Businesses are integrating advanced technologies such as online rental tools, route optimization software, GPS tracking, and telematics systems. These technologies help drivers navigate congested holiday traffic, ensure timely deliveries, and be better equipped to handle last-mile deliveries.
During Black Friday and Cyber Monday, inventory management and warehousing are crucial elements for the success of any retail business. As the demand for products and services surges, retailers need to ensure that their warehouses have room for efficient storage and order fulfillment. This includes having an accurate inventory count, implementing an effective order tracking system, and ensuring that products are properly stored should there be excess goods.
While inflation rose to about 3.7% this year, financial experts and economists predict more easing in the coming months and lower prices than last holiday season. This stat suggests more consumer spending, larger orders, and more deliveries, but keep in mind that gas prices and higher housing costs may still impact expected sales.
Here are some things businesses should consider to aid with inventory and warehouse challenges.
· Storing Excess Inventory: Some businesses may find that they need a place to store excess inventory. Storage trailers are cost-effective and dependable for housing inventory in a temporary location.
· Rentals for Trailer Pools + Drop and Hook Applications: Sharing and utilizing a common pool of commercial trailers can optimize transportation and logistics operations. A big benefit during the holiday season, it helps businesses save costs, improve efficiency, and reduce empty trailer miles.
· Data-Driven Tools: Data analytics and inventory management software help businesses understand customer behavior and make data-driven decisions. This allows for efficient allocation of products to distribution centers, minimizing transport costs and reducing order fulfillment time.
The holiday season requires having seasonal staff, including the drivers who are in it for the long haul. This shift in labor during Black Friday and Cyber Monday impacts the transportation industry as businesses adapt by recruiting and managing staff effectively.
When looking for commercial vehicles during the busy season, keep these things in mind to create a positive and productive working environment.
· Driver Recruitment: If hiring temporary drivers to handle increased demand, time will be a challenge when training them. Think about using streamlined training programs to cover all the bases and get them up to speed effectively.
· Overtime and Incentives: To incentivize drivers to meet the heightened demand, companies often offer overtime pay, bonuses, or other incentives. This helps ensure a motivated workforce during the holiday season.
· Safety Measures: With the increased pressure on drivers and the higher traffic volume during the holiday season, businesses are focusing on safety measures and compliance with regulations. This includes driver monitoring, fatigue management, and vehicle maintenance. In the long run, your business will have improved cost expenses and more motivated employees by your side.
All these Black Friday and Cyber Monday deals have to be delivered somehow. Using the right tools, companies can seize the opportunity to improve their bottom line during two days which make an estimated amount of $71 billion combined.
With the COOP platform, businesses have access to the largest tech-driven fleet optimization and rental solutions. With more than 30,000+ vehicles for rent, including dry van, and refrigerated trailers, plus new, late-model, and Ryder maintained trucks, tractors, and vans, companies nationwide can gain ultimate flexibility and options to efficiently fulfill transportation needs.
COOP is your one-stop shop for effective transportation solutions which include the following:
· Commercial Trailer and Vehicle Rentals
· Make Money from Idle Vehicles
· Rentals for Trailer Pools + Drop and Hook
· Commercial Storage Trailer Rentals
Backed by Ryder’s team of experts and years of extensive knowledge in the industry, we’re empowering companies to maximize the potential of their fleet operations.
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