Peak Season Expectations, Workforce Demands and COVID-19 Concerns Remain Challenges for Supply Chain Leaders

Over 70% agree that they’ve seen an increase in customers wanting last-mile delivery solutions and higher demand for white glove services.

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Companies have confidence in their e-commerce strategies ahead of the official 2021 peak shipping season that traditionally runs from September through December, yet anticipate challenges for the second half of the year, such as new COVID-19 variants threatening another phase of lockdowns to ongoing challenges in recruiting and retaining employees, according to a study released by GlobalTranz Enterprises, LLC.

“While the resurgence of COVID-19 has created another element of uncertainty heading into peak season, we’re seeing cautious optimism around how supply chains have adapted to the challenges of the past year,” says Ross Spanier, EVP of direct channel at GlobalTranz. “Businesses have put in place new supply chain strategies and established partnerships with logistics providers that can help them manage through this volatile environment.”

From GlobalTranz Enterprises:

  • About three quarters (76%) of decision makers expect that their 2021 peak season revenue will be higher than the previous year.
  • Nine in 10 decision makers indicate they need to increase hiring to meet customer demand.
  • Over 70% agree that they’ve seen an increase in customers wanting last-mile delivery solutions and higher demand for white glove services.
  • 94% noted that partnerships with supply chain/logistics companies are necessary to get through peak season successfully.
  • At least one-third of respondents cite supply chain congestion, rising transportation costs, workforce deficits and potential lockdowns related to COVID-19 as top concerns.
  • Nearly half (47%) of respondents say they will be paying higher salaries or wages to both attract new talent and retain current employees before the end of the 2021 calendar year.

“The survey results indicate that supply chain professionals continue to adapt to a myriad of changes in the business environment and shifting consumer behavior,” says Spanier. “Yet there is still optimism among leadership who went through the experiences of the past 18 months and are investing in the tools and partnerships that will help their businesses succeed.”

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