Page 14 - Logistics News - September October 2023

SUPPLY CHAIN MANAGEMENT

How to prepare for peak season:

Are your DC and supply chain ready?

By Gary Benatar, Chariman of Relog, www.relog.co.za

Discover how to prepare for peak season in the southern hemisphere and why it differs
significantly from its northern hemisphere counterpart.

he term ‘peak season’ conjures up images of bustling Summer holidays. While summer holidays in the
stores, online shopping sprees and an abundance of northern hemisphere fall during June and July, in the
Tpackages flying through the logistics network. For southern hemisphere, these vacations take place from
many countries in the northern hemisphere, this surge in December to February. This extended summer season brings
consumer activity is primarily associated with the holiday about an increased demand for summer-related products,
season, featuring events like Christmas and New Year’s Day. travel and tourism. Also, with people going to the coast, the
However, in South Africa and other southern hemisphere coastal regions experience a much higher demand than
nations, peak season takes on a unique character due to an inland regions.
array of factors.
Annual bonuses. Another unique aspect of our peak season
The unique dynamics of peak season in the is the annual bonus as many companies in the region offer
southern hemisphere bonuses to their employees during this period, stimulating
In the southern hemisphere, peak season is a multifaceted consumer spending.
period, characterised by several concurrent factors that drive
consumer demand higher than in the northern hemisphere, So, the peak season in the southern hemisphere will be
where their peak to average can be 30-50 percent and in South larger than the peaks experienced in the north and this makes
Africa, it’s often double or triple this, and for some commodities the infrastructure and operations more critical in the ability to
up to 300 percent. Unlike the northern hemisphere, where meet the demand. At the same time, a lot of our infrastructure
Christmas and New Year’s dominate the landscape, South Africa is underutilised and over capacity for nine months of the year.
and its southern hemisphere counterparts experience a more Some companies make the mistake of planning for the average
diverse peak season. These factors include: and get into trouble at peak. There are some basic and simple
rules to follow to make your supply chain and DC meet these
Christmas and New Year’s Day. Just like the northern demands.
hemisphere, the southern hemisphere celebrates Christmas
and New Year’s, marked by gift giving, family gatherings and Supply chain availability: The key to
increased consumer spending. preparing for peak season
Preparing for peak season in the southern hemisphere
Back to school. January marks the start of the school year involves a careful evaluation of supply chain availability. To
in South Africa and as parents and students prepare for the meet the expected surge in demand, it is essential to ensure
academic year, the demand for school supplies, uniforms and that inventory is adequately stocked and the supply chain is
related items peaks during this period. optimised.

12 SEP T E MB E R/O CT O B E R 2023 www .l o g ist i csn e w s .c o .z a