This episode dives deep into "Shipageddon," the 2020 holiday shipping crisis exacerbated by COVID-19 and peak e-commerce demand. It covers how major carriers implemented quotas, the struggle for retailers to manage inventory and entice early orders, and the broader freight capacity challenges. This is a must-listen for any ecommerce operator navigating logistics and supply chain disruptions during peak seasons.
Key takeaways
Understand that carrier capacity is not infinite; anticipate and plan for shipping quotas and restrictions, especially during peak seasons.
Implement strategies to encourage customers to order earlier to alleviate last-mile delivery congestion and avoid late shipments.
Recognize that supply chain issues extend beyond last-mile delivery to freight capacity for restocking inventory; diversify sourcing and shipping options.
Monitor media and industry predictions for potential disruptions like "Shipageddon" to proactively adjust your logistics and fulfillment strategies.
Communicate transparently with customers about potential shipping delays and manage expectations around delivery timelines.
EP245 - Shipageddon DeepDive On October 3rd, we published episode 238 and coined the term "Shipageddon." We were talking about the likely e-commerce peak we expected from the holiday, on top of the e-commerce peak we were already seeing do to Covid-19, and we felt like retailers were likely to run into shipping capacity issues. The term (and concept) have gained a lot of traction, being featured print in the NY Times Brace for Holiday 'Shipageddon' Forbes, Bloomberg, and on the Today Show, NBC News, and many others. In the subsequent 45 days, it's become clear that we will have a last-mile capacity problem, with all major carriers implementing quotas, turning away new clients, and retailers struggling to entice earlier orders from consumers. Worse, we're also seeing a lack of freight capacity to restock retailers with limited inventory, and a strong resurgenc
What does this episode say about supply chain & operations?
Understand that carrier capacity is not infinite; anticipate and plan for shipping quotas and restrictions, especially during peak seasons.
What does this episode say about retail & omnichannel?
Implement strategies to encourage customers to order earlier to alleviate last-mile delivery congestion and avoid late shipments.
What does this episode say about dtc strategy?
Recognize that supply chain issues extend beyond last-mile delivery to freight capacity for restocking inventory; diversify sourcing and shipping options.
What does this episode say about supply chain & operations?
Monitor media and industry predictions for potential disruptions like "Shipageddon" to proactively adjust your logistics and fulfillment strategies.
What does this episode say about supply chain & operations?
Communicate transparently with customers about potential shipping delays and manage expectations around delivery timelines.
