Email teams shouldn’t get too comfortable as this gear up for this year’s holiday season.
The brands they work for are uncertain — or at least, their logistics workers are. For instance, 32% expect revenue to decrease, versus 33% who foresee an increase and 25% who are uncertain, according to The 2022 Last Mile Holiday Perspective, a study from DispatchTrack, conducted by SurveyMonkey.
What’s more, 92% expect higher operating costs, and that percentage rises to 93% when fuel is added.
Drilling down, 56% expect a 10%-20% increase in costs, while 27% anticipate a 25%-50% hike. And 39% predict a 25%-50% fuel increase.
A heroic 25% do not plan to raise their prices despite cost increases.
Costs aside, 82% worry about missing delivery windows again this season. Of those, 66% are just as concerned or more than they were last year.
In addition, 80% are uneasy over fuel costs.
Despite last year’s problems, only a third are planning for the holidays earlier this year.
In general, logistic people say they are worried about:
Inflation — 50%
Driver shortages — 48%
Losing business due to the economy — 38%
Delays beyond their control — 37%
Keeping up with demand — 23%
Unpredictability — 20%
Unknowns — 15%
And it goes without saying that 25% are still concerned about the business impact of another COVID-19 wave. Yet only 33% are prepared for it.
What are companies doing to deal with these dilemmas? Of those polled, 50% have invested in new technology or are expanding their existing tech stack this year.
In addition, 40% plan to rent warehouse space and/or trucks to prevent fulfillment issues. Specifically, 16% will rent both, while 16% will secure warehouse space and 9% will spring for trucks.
On another front, 70% are prioritizing sustainability or planning to, and 23% are already putting it on the front burner and 47% will do so in the coming year.. But 85% do not anticipate adding EV trucks this year or next.
SurveyMonkey surveyed 133 logistics professionals from June 7 to July 2, 2022. These respondents work in furniture and appliances, building supplies, medical, agriculture, auto parts and food, beverage and grocery distribution.