Every year merchants and shipping providers get in the mood for increasing shipping volumes in the Christmas business. How is the delivery volume changing in the year-end business and how can parcel quantities be delivered quickly and reliably across national borders this season?
1. How does shipping volume change at Christmas time?
From data quantities to delivery quantities
Digitalization is transforming our communication and the way we work together. Big data is generated and used profitably in all industries, including logistics. SEVEN SENDERS provides a comprehensive delivery platform for international parcel shipping to senders from a wide range of industries. The logistics experts use the resulting data to optimize supply chain planning for retailers and shippers.
From the moment it is handed over to the parcel service provider, each individual shipment is identified and tracked throughout: from feed-in to delivery to the customer. In this way, thousands and thousands of meaningful shipping data are generated and systematically evaluated. On the basis of this data, forecasts can be made about the expected shipping volume and offer more planning security in cross-border shipping.
”The shipping data from our delivery platform provides us with valuable information for planning high delivery volumes and supporting our customers in the Christmas business.”
Karsten Fellbaum (Head of Business Development and Supply Chain Planning) and Tim Kammann (Manager Business Development Logistics
Increasing delivery quantities in the Christmas business
In order to determine the international shipping volume of all our customers, our logistics experts evaluate the number of all parcels delivered in the previous year. They determine seasonal and industry-specific fluctuations in the delivery volume and calculate the expected shipping volume of our customers for the following year on this basis.
A look at the shipping data for calendar year 2018 shows how shipping volumes increase at Christmas: while delivery volumes remained constant at the beginning of the fourth quarter, they doubled at Black Friday. By Christmas, delivery volumes were higher than in the rest of the calendar year: in the week before Christmas, delivery volumes were 1.5 times higher than in a regular week. In the last week of the year, the delivery volume fell to the average level before the Christmas business.
Not All E-commerce Products Are Similarly Popular Under the Christmas Tree
How the shipping volume changes during the Christmas season depends on the industry: online shops for gift articles, electronics and furniture, for example, register a high volume growth from Black Friday, while the Christmas business for suppliers of diapers and hygiene articles is quieter: These products do not necessarily enjoy great popularity under the Christmas tree. In the Food and Nutrition segment, on the other hand, volumes will rise again from January: Then consumers start the new year with good intentions.
2. How do the presents land under the Christmas tree in time?
“In order to pick up all parcels promptly and deliver them quickly across national borders, even with an increasing delivery volume, precise planning is crucial."
Tim Kammann, Manager Business Development Logistics
Supply chain planning is proving to be challenging at Christmas time, and not just because of high shipping volumes. One difficulty is the large number of days without pick-ups, as many freight forwarders completely shut down their business between 19 December and 3 January. Another challenge will be the last pick-up before Christmas: Many freight forwarders and last-mile carriers formulate their own date on which parcels can be fed into the destination country for the last time.
These complexities and dependencies must be systematically planned, coordinated and monitored. SEVEN SENDERS assists in the planning of transports: Based on the analysis of shipping data and in close coordination with customers, freight forwarders, supply chain analysts and buyers, our experts determine possible bottlenecks in delivery and the additional capacity requirements that arise.
“Supply chain planning is a permanent balancing act between customer requirements, cost management and freight purchasing. In exchange with various departments, we plan the fastest and most efficient delivery routes in a targeted manner, even for high delivery volumes.”
Karsten Fellbaum, Head of Business Development and Supply Chain Planning at SEVEN SENDERS
Harness a Comprehensive Carrier Network
The task of SEVEN SENDERS is to relieve dealers of these expenses and to successfully arrange international delivery even at peak times. Shippers work simultaneously with different local carriers at no extra cost and delegate the coordination of transports to the various countries to logistics specialists. The comprehensive delivery network increases the chances of finding providers with the necessary delivery capacities even at short notice.
In this way, the SEVEN SENDERS team supports international shippers in creating a good shipping experience for their customers, even during the hectic Christmas peak season. After all, Christmas is the best time for them when all the presents are under the tree in time.