The last few months of the year prove especially challenging for the logistics industry. Driven by the surge in holiday purchases, peak season begins in October and runs through January. During that period, daily shipment volumes can increase by 50% to 100%. This extra volume strains supply chains and impacts how efficiently packages move from their source to final destination.  

During peak season, shippers can experience frustrations such as potential delays, longer lead times and higher shipping costs. The healthcare industry, in particular, can face higher risk due to the critical contents of its shipments. Whether it’s life-saving medications or equipment needed to complete surgeries and treatments, unplanned shipment delays can have a serious impact on healthcare organizations and the patients they serve. 

As we navigate this year’s peak season, several factors are making it unusually challenging. Factors to consider include:

The 2024 holiday shopping season will be the most condensed since 2019. Thanksgiving falls later in the month this year, on November 28, which will result in fewer days for shipments to move throughout the network between Black Friday and Christmas. Healthcare organizations can anticipate higher volumes in the network during those key weeks between holidays, which may cause surges that can lead to potential delays. Carriers may also adjust commitment times during this timeframe.

Peak season volume growth rates are expected to be comparable to last year. According to Forbes, this year is trending with similar growth rates as 2023, with the first four months of 2024 experiencing growth of 3.8% in core retail spending patterns, compared to a very similar 3.9% growth rate in 2023. Economic uncertainties, however, could cause a decline in consumer spending, which would lower volume throughout peak season.

Demand surcharges will impact costs throughout peak season. Carriers often implement demand surcharges throughout peak season due to elevated volumes, high demand for capacity and increased operating costs, such as added seasonal workers. National carriers handle demand surcharges uniquely, but shippers should know prices likely peak between Thanksgiving and early 2025.

But being aware isn’t the only step healthcare organizations can take toward peak season preparedness. Following is a checklist of seven action items that supply chain teams can use to navigate peak season.

• Stay informed by regularly checking freight and parcel carrier websites for published demand surcharges, holiday schedules, and service alerts.
• Communicate peak season dock hours of operation (if they’re changing) to your vendors, and contact outbound shipment recipients to verify when a location is open or able to receive deliveries.
• Review your shipping data from previous peak seasons to better understand trends and roadblocks. This will help you manage risk and identify opportunities for optimization.
• Track growth rates and demand to ensure that volume needs are readily available and if safety stock is needed.
• Encourage customers to consider early ordering wherever possible, to increase lead times and help avoid network delays due to peak season volume.
• Proactively prepare contingency plans with your customer base, suppliers and vendors, should inclement weather or peak-related issues interrupt normal business operations.
• Communicate early with parcel and freight carriers if you anticipate any larger-than-usual volumes that are outside of your typical trends, to ensure that resources and capacity are available.

Engaging an experienced healthcare logistics management provider is another best practice to consider, to make peak season less challenging. Such a partner should act as an extension of your team and implement shipping best practices, optimize supply chains, and proactively identify efficiencies and savings opportunities throughout the holidays and beyond. 

A logistics partner should also work closely with national parcel carriers to enable visibility and control. From end-to-end program management of inbound and outbound parcel and freight shipments, to collaboration with parcel carriers and suppliers, a third-party logistics provider can help navigate peak-season implications. 

Peak season can bring unforeseen challenges to any industry, but planning early and communicating often can help everyone in the healthcare industry to stay ahead and successfully navigate this year’s surge in activity.

Emily Gallo is senior vice president and general manager with Cardinal Health OptiFreight Logistics.