WHERE TO LOOK FOR THE CAUSES OF TRANSPORT PEAKS?
The augmented number of transports in the end of the month mainly are artificially generated peaks which seldom are a consequence of any real consumer demand. Because has anyone seen a queue in the shops for a toothpaste, a washing machine or a wallpaper glue?
Only 10% of respondents indicated that the reason of the peaks is a temporary increase in consumption by end users. The real causes of the monthly transport peaks lie on the side of participants of supply chains, and there are many – the leading ones are these related with the organization of sales and the trade policy of the companies.
As many as 40% of logistic managers thinks that the main reason for the peaks are the motivational systems for the buyers of goods which increase purchases before the end of the month. They are based mainly on the additional discounts for exceeding the agreed amount of monthly purchases or promotional activities organized to achieve the set sale budgets. Given that the main customers of the manufacturers are retail and wholesale large-format stores, the retailers are ordering large volumes of products. It’s easy to imagine what happens when the orders and the deliveries to the biggest recipients accumulate.
33% of respondents thinks that the reason of the peaks is the motivational system of the traders that rewards the realization of sale targets before the end of the month. There’s a question whether such examples of solutions like shifting settlement periods for certain products or regions, so they do not overlap, or rewarding the sale departments for regular sale are to apply in practice?
Among the causes of the peaks in road transport there were also such as: the overlap of monthly and quarterly settlements, “slimming” the warehouse processes by the recipients, the immutability of the agreed sales budgets in relation to market realities, delaying payments from recipients which causes the pauses of supplies and their accumulation after “unlocking” the client.
An important issue seems to be a lack of proper planning of the execution of sale budgets with the assumed costs and monitoring of the entire supply chain based on KPI, from the planning of sales, costs, resources, to the timely delivery.
Analyzing the causes of the peaks it is worth considering which ones do we have influence on, and so potentially they are possible to change, and which are beyond our influence or are a matter of coincidence.