Fear Not This Holiday Peak Season: Addressing 5 Key On-Demand Workforce Challenges

Bain & Company forecasts a 3% growth in holiday sales in 2023, below the 10-year average of 5.1%, but Bain projects 90% of that growth will come from non-store sales. With a substantial year-over-year rise in e-commerce sales, warehouse managers will face the challenge of handling an influx of orders and an inevitable surge in returns. Online gift purchases tend to generate a higher rate of returns than in-store purchases. The National Retail Federation reports that nearly 18% of holiday goods purchased last year were returned. Managing the logistics and inventory fluctuations resulting from these variables will be a complex planning task.

The rising cost of goods and services has motivated customers to seek value and secure purchases well in advance, disrupting traditional seasonal buying patterns. This shift can catch supply chains off guard, affecting inventory management and distribution strategies.

As borrowers begin to repay their loans, it can lead to a reduction in disposable income, influencing purchasing habits and overall consumer spending. Once payments resume this fall, consumers could pay roughly $300 per month in loan repayments, per an analysis from the consumer data firm Earnest Analytics, which finds home goods and apparel sectors likely to be impacted. A change in financial priorities for large groups can have a cascading effect on demand patterns, making it challenging for supply chains to anticipate and meet shifting needs.

The stability of the workforce is crucial for seamless supply chain operations. Labor disputes or uncertainties can disrupt the entire supply chain ecosystem as well as having a ripple effect on spending.

Extreme weather events, natural disasters, or unexpected climate shifts can disrupt the transportation of goods, damage infrastructure, and hinder the overall flow of products. These disruptions can lead to delays, increased costs, and customer dissatisfaction.