Orders spike before Tet and how to manage them
Tet, or Lunar New Year, is one of the busiest times for brands and logistics companies in Vietnam and Asia. Freight volumes can rise by 7% to 25% compared to the previous year due to higher consumer spending, early stocking by retailers, and the rush to complete exports before factory closures.
Logistics providers face tight deadlines, limited resources, and changing consumer demands for practical, affordable goods. Manual processes often fail under pressure, leading to delays, higher costs, and damaged customer trust. Therefore, automation has become the key solution, helping businesses handle demand spikes by improving efficiency, cutting costs, and scaling operations smoothly.
Challenges when Tet orders increase suddenly
Lunar New Year is a hectic season for logistics companies. Here's why:
- Rising demand: More people shop for essential goods, gifts, and holiday supplies, pushing freight volumes up by as much as 25% compared to normal times.
- Tight deadlines: Factories rush to ship goods before closing, and domestic delivery schedules get crammed. Traffic in cities adds to the delays.
- Changing trends: Consumers now prefer practical, affordable goods, forcing logistics providers to adjust their plans on the go.
These challenges can lead to missed deadlines, higher costs, and unhappy customers if not handled properly. To stay on top of things, many businesses turn to automation for faster, more reliable operations during this busy period.
How automation helps
For logistics companies, handling the chaos of Lunar New Year often means juggling tight deadlines, rising costs, and high customer expectations. This is where automation comes in, offering practical solutions that make a real difference during the busiest time of the year.
Take inventory management, for example. A Warehouse Management System (WMS) can track stock in real-time, reduce errors, and speed up order fulfillment. This ensures retailers get their goods on time, even when demand is at its peak. Meanwhile, Transportation Management Systems (TMS) optimize delivery routes, helping drivers avoid traffic congestion and make timely deliveries.
- Scalability: Automation scales easily to handle sudden spikes in orders without the need for extra manpower.
- Cost Efficiency: By cutting manual errors and improving resource allocation, businesses save both time and money.
These tools not only keep operations running smoothly but also help companies maintain strong customer relationships—something that’s critical during the holiday season. With automation, logistics providers can focus on delivering results, not scrambling to fix problems.
Steps to automate your logistics operations for Tet
Preparing for the Lunar New Year boom with automation requires a structured approach. By following these steps, logistics companies can ensure smooth operations, even during the busiest times of the year.
1. Assess your current workflow
The first step is to assess your current logistics processes. Are there delays in processing inventory? Are delivery routes optimized? Identify key pain points that cause inefficiencies during peak times. For example, many companies struggle to track inventory in real time or lack the tools to adjust delivery schedules quickly. A comprehensive workflow audit will highlight where automation can make the most significant difference.
Key tip: Use metrics like average order processing time, delivery accuracy rate, and customer satisfaction scores to measure performance gaps.
2. Choose the right automation tools
Choosing the right tools is critical to solving your specific challenges. Consider the following systems:
- Warehouse management systems (WMS): These tools help you track inventory in real time, reduce errors, and optimize storage. For example, they can prioritize fast-moving items during peak times to improve order fulfillment speeds.
- Transportation management systems (TMS): These systems optimize delivery routes, taking into account traffic conditions, fuel costs, and delivery time frames. During the Lunar New Year, when urban traffic spikes, TMS ensures drivers take the most efficient routes.
- Order management systems (OMS): Synchronize your e-commerce platform with your logistics operations to process orders seamlessly, even during surges in volume.
For example, a logistics company in Ho Chi Minh City used WMS and TMS integration during the previous Lunar New Year season, cutting delivery delays by 30% while managing 20% more orders.
3. Integrate and test your systems
Automation works best when tools are connected. Integrating your WMS, TMS, and OMS ensures data flows seamlessly between inventory, shipping, and order management. Testing your systems under real-world peak season conditions is critical to ensuring everything runs smoothly when demand spikes.
For example, simulate high order volumes to check that inventory is updated in real time and deliveries are assigned efficiently. Identify potential delays or errors and address them before the season begins.
4. Train your team for success
Even the most advanced tools require skilled users. Training is essential to ensure your employees know how to operate the new system and troubleshoot common issues. Include warehouse staff, delivery teams, and customer support in the training.
Practical tips:
- Hold hands-on workshops with your system vendors.
- Provide quick reference guides or cheat sheets for key tasks.
- Designate certain team members as automation experts to handle urgent issues.
Well-trained teams will help you maximize the potential of your automation tools and ensure smoother operations during peak holiday times.
5. Monitor performance and optimize in real time
During the Lunar New Year, conditions can change rapidly. Monitor system performance with real-time data to make necessary adjustments. For example:
- If a particular delivery route is congested, the TMS can suggest alternative routes.
- If inventory for high-demand items is running low, your WMS can alert you to replenish priority inventory.
Review key metrics like order fulfillment times, successful delivery rates, and daily system error logs. This proactive approach ensures that small issues don’t become major disruptions.
6. Plan for post-holiday adjustments
After the Lunar New Year, logistics operations often experience a sudden drop in demand. Automated systems can help make adjustments, such as optimizing inventory levels and reducing transportation resources. Use this time to review system performance and identify areas for further improvement.
Automation isn’t just about technology—it’s about building a system that adapts to challenges while still delivering results. By taking these steps, logistics companies can turn seasonal demand spikes from a challenge into an opportunity to stand out in the market.
Why automation is worth the investment
Automation is not just a quick fix for the challenges of Tet, but a long-term strategy that pays off.
- Cost savings: Automation reduces labor and fuel costs by streamlining operations. For example, a Transportation Management System (TMS) can cut delivery costs by up to 15% through optimized routing.
- Faster fulfillment: Systems like a Warehouse Management System (WMS) help process larger order volumes, reducing processing times by up to 40%.
- Happier customers: On-time deliveries and accurate inventory tracking build trust and loyalty, which are critical during peak seasons.
- Scalability: Automation scales seamlessly with demand spikes, avoiding manual bottlenecks.
After Tet, automation ensures year-round efficiency, smarter decision-making, and resilience to future challenges.
With increased demand and tight schedules, the holiday season presents a challenge for brands and logistics companies alike. Automation is arguably the best solution as it can streamline operations, cut costs, and improve delivery accuracy. Likewise, tools like WMS and TMS help businesses meet seasonal spikes while keeping customers happy.
Beyond the holiday rush, automation builds long-term efficiencies, making it a smart investment for the future.
Ready to transform your logistics operations? Contact us today for a consultation or demo on how automation can help your business thrive during Lunar New Year and beyond.