Peak Season Logistics: Insights from Markus Schmuecker, Global Sector Leader, eCommerce, CEVA Logistics

During peak seasons, usual order volumes increase eight to tenfold, creating significant operational challenges. Logistics providers need to be agile in order to meet consumer expectations, business requirements and environmental regulations. Markus Schmuecker, Global Sector Leader eCommerce at CEVA Logistics, answers our questions about key operational challenges and current trends in automation and robotics, last-mile transport optimization, and sustainable packaging. These expert insights are designed for professionals looking to anticipate and effectively manage periods of high demand.

 

CEVA Insights: How does CEVA Logistics incorporate robotics and automation to optimize inventory management and order processing during peak seasons like Black Friday or other holidays?

During peak seasons, order volumes grow exponentially, creating significant logistical challenges for inventory management and warehouse operations. To meet these demands, logistics providers are investing heavily in robotics and automation.

At CEVA Logistics, we use robots to pick orders - picking individual items and placing them in pouches, which are then automatically sorted. This enables efficient assembly and accuracy of complete orders, especially when customers purchase multiple products on a single order. Mobile robots also bring shelves directly to operators through the “goods-to-person” principle. Guided by GPS or floor rails, these robots eliminate the need for employees to navigate the warehouse, optimizing workflow and reducing picking time.

These automated systems operate 24/7 with backup batteries to eliminate downtime for recharging. Additionally, we have implemented manual processes to increase picking capacity when demand surges. This combination ensures orders are quickly processed and correctly picked even during peak demand periods.

 

CEVA Insights: How does CEVA Logistics adapt its workforce to adapt to volume fluctuations during high-demand periods such as Black Friday?

The increase in order volumes during peak seasons requires a high degree of workforce flexibility. CEVA Logistics employs a flexible workforce model to meet this increased demand, combining permanent employees with temporary staff.

During peak periods, we switch from two to three shifts per day, allowing for continuous 24/7 operations. Special permits also enable us to work on Sundays in certain countries, such as Poland and the Netherlands. To ensure smooth integration, temporary workers begin several weeks before the seasonal peak, giving us time to properly train them.

This agile approach enables us to focus efforts on outbound shipping, while anticipating inbound processes to prevent bottlenecks. This strategy enables CEVA to maintain high-performance levels and customer satisfaction even during peak demand periods.

CEVA Insights: How does CEVA Logistics use resource pooling to effectively manage demand peaks during periods like Black Friday or the holiday season?

To handle periods of high demand, CEVA implements campus solutions, meaning clustering multiple warehouses within the same area to enable resource pooling. This setup allows us to have not just one, but several warehouses, ideally adjacent or within the same business park, facilitating seamless staff movement between locations as needed. We focus on cross-training employees, equipping them with skills to manage various processes for different customers. This flexibility ensures that staff can be quickly deployed to areas experiencing unexpected spikes in workflow, maintaining operational efficiency even during peak periods.

 

CEVA Insights: How can eCommerce retailers rely on their logistics providers to manage the increased flow of returns after peak periods such as Black Friday and Cyber Monday?

In eCommerce, managing returns is critical, especially in fashion, where return rates are very high. Unlike electronics, which have lower return rates, fashion purchases often involve multiple sizes or colors, causing the return rate to be nearly double to other kinds of purchases.

Ecommerce retailers can optimize returns management by leveraging the services of logistics providers. By quickly processing returns of seasonal and high-demand items, specialized providers located close to consumers allow retailers to quickly issue refunds. By doing so, it frees up customers’ funds, encouraging more purchases, often from the same retailer.

Additionally, by quickly refurbishing returned items, they are reintegrated into available inventory for resale, reducing the risk of obsolete inventory tied to seasonal trends. Effective returns management during peak seasons is therefore critical to maintaining customer satisfaction and profitability for eCommerce.

 

CEVA Insights: How does CEVA Logistics optimize eCommerce order transportation during peak seasons, particularly for last-mile delivery management?

During peak seasons, CEVA Logistics prepares warehouse orders for collection by designated last-mile partners. Although we don’t always handle the last mile ourselves, except in certain countries like

France and Belgium, we work closely with major eCommerce players who manage their own delivery contracts.

To ensure speed and reliability, we utilize a Transportation Management System (TMS) within our global network featuring a control tower function to track shipments. While updates from carriers may not always be in real-time, they provide near-continuous tracking of packages.

Finally, CEVA optimizes its ground and rail networks across all regions by consolidating shipments and coordinating pick-up points to maintain efficient geographic coverage, even during high-demand periods like Black Friday.

 

CEVA Insights: What sustainable initiatives has CEVA Logistics implemented to reduce the environmental impact of eCommerce deliveries, especially during peak seasons?

Sustainability is an ongoing priority for CEVA Logistics that extends beyond peak periods. One key area of focus is sustainable packaging materials. Although this transition takes time to be widely adopted, forward-thinking companies are increasingly replacing plastic bags with paper bags and using renewable and recyclable materials for product packaging.

The use of low emission electric or hybrid vehicles for middle-mile and last-mile delivery is expanding, especially in major cities. Congestion charges and environmental taxes further encourage this shift, making low emission vehicles a more viable option.