News and Insights from Motivational

Get Your Logistics in Shape for Peak Season 

Written by Motivational Fulfillment & Logistics Services | Sep 27, 2024 4:30:00 PM

Peak season is here, and in the competitive industry of fitness and exercise equipment, a robust supply chain is essential for making the most of this time of year. Retail fulfillment trends are constantly shifting with the increase in ecommerce, which makes it vital to plan ahead as much as possible. According to Adobe, online shopping data for the 2023 peak season (from November 1 through December 23) hit at a record $222.1 billion in online sales.  

To drill down on this data, Statista reports, “In the United States, the entire sports equipment market was valued at an estimated 18.5 billion U.S. dollars in 2023. The specific exercise equipment segment generated about five and half billion U.S. dollars that year.” 

If your logistics are in place, you’ll have a much easier time taking advantage of those opportunities.  

Partnering with a 3PL is a great way to make sure all of your business’s needs are met during this time. A 3PL can provide important value-added services like kit assembly, display design, and packaging.  

But there are a lot of things to consider when it comes to who you choose to work with.  

Peak Season Planning for Fitness and Exercise Equipment 

To start, you’ll need to ask yourself about your priorities and needs during this season, such as:  

  • What goals have you set for your business, and are they reasonable?  
  • What are your delivery deadlines, and can you hit them reliably?  
  • What partnerships do you already have or need to nurture in order to service your customers?  

Of course, needs will vary by industry. If your business is in the exercise equipment vertical, for instance, you should take into account your products’ size and weight, as well as fragility. These things will impact different aspects of your supply chain because you’ll need to factor in the time and effort spent on additional packaging details like extra padding and custom or modular packaging.  

Logistics Challenges for Fitness and Exercise Equipment 

  • Heavy and Bulky Products: Certain exercise equipment can be difficult to transport and store. For example, treadmills, weight machines, dumbbells.
  • Seasonal Demand: Sales often fluctuate throughout the year. Peak seasons for fitness equipment happen during the winter holidays, the New Year, and summer months. 
  • Customer Expectations: Fitness enthusiasts have high expectations for product quality, timely delivery, and customer service. 

Logistics KPIs for Peak Season 

When determining your KPIs for the season (and later, when you review your 3PL’s performance), consider the different aspects of your supply chain and what you would call a success in each of these areas.  

  • Order fulfillment. Are orders being processed correctly and shipped out on time? 
    • KPIs
      • On-time order processing
      • Order accuracy rate
      • % of orders shipped complete and on-time 
  • Inventory management. Do you have an accurate record of your inventory and a way to update it quickly and efficiently throughout peak season?  
    • KPI 
      • Inventory Accuracy & Visibility (%) 
  • Warehouse efficiency. What is the average length of an order cycle? How accurate is your pick and pack process?  
    • KPI 
      • Pick & pack accuracy 
      • Order Cycle Time  
  • Transportation and delivery. How can you make sure your orders are delivered on time, especially during the busy peak season?  
    • KPI 
      • On-Time Delivery Rate (%) 
  • Value-added services. What additional services could a 3PL provide that would make your products more appealing and easier to transport?  
    • KPI 
      • Ability to kit for orders 
      • Ability to source packaging for your products to optimize shipping costs 
      • Ability to complete ticketing and labeling for you in compliance with retailer’s strict and complex standards 
  • Reverse logistics/returns. Studies show that this is one of the most important functions during peak season. What do you need to have in place in order to ensure that your customers have a smooth experience? 
    • KPI
    • Return processing time
    • Ability to complete product rework and refurbishment 

Partnering with an Omnichannel 3PL 

Partnering with an omnichannel third party logistics company gives you the opportunity to get support in all of these areas. But it’s also important to determine ahead of time if your 3PL is appropriately prepared for the season. This might mean asking them about their ability to handle increased orders, their experience in managing the supply chain during busy times, and the technology they use to enhance the process. We recommend using our Peak Season Scorecard to help you keep track of how your 3PL does in all of these areas.  

At Motivational, we bring years of experience and expertise to peak season prep, including fulfilling complex requirements for a wide variety of verticals and making sure your supply chain runs smoothly. Let’s talk about how we can help!