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Peak season starts in August

By the time a fulfilment operation feels peak, the packaging decisions that would have helped were needed eight weeks earlier. A calendar for people who receive bulk and ship parcels.
Published
September 17, 2024
Written by
Nadia Okonkwo-Reyes
Reading time
8 minutes

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Key takeaways

  • Fulfilment sites hit the generator problem and the consumer problem on the same day, which is what makes peak expensive.
  • Count one week of empties in July; most sites underestimate their own generation by about half.
  • Clearance capacity is genuinely finite and books out from August. A July conversation costs nothing and holds equipment.
  • Single-size carton lots are reusable stock worth forty cents to a dollar eighty each, not OCC worth a few cents a pound.

Every October we get calls from fulfilment operations that need three hundred bulk boxes this week, plus somebody to take away the eleven hundred empties currently blocking a door. Both are possible. Neither is cheap, and both would have been straightforward in August.

The two problems arrive together

This is the specific difficulty of peak in e-commerce and third-party logistics: inbound volume rises, which means more empties accumulating, at exactly the moment floor space becomes most valuable and staff have least time. The generator problem and the consumer problem peak on the same day.

A site that has not planned for it ends up paying for emergency clearance while also paying spot prices for containers, in the same week, having spent the preceding six weeks losing productivity to congestion.

The calendar that works

Peak preparation timeline for a fulfilment operation
WhenDo thisWhy then
JulyCount one week of emptiesEstablishes the real generation rate before volume rises
Early AugustBook clearance capacity for Sept – DecEquipment is still available; it will not be in October
Mid AugustReserve container stock against forecastStanding rates rather than spot
SeptemberStart scheduled fortnightly collectionPrevents accumulation reaching crisis level
October – DecemberWeekly collection, reverse-flow loadsEmpties out, stock in, same visit
JanuaryPost-peak clearance and reconciliationAvailability is good, rates are soft

Why counting in July is the whole thing

Almost every fulfilment site underestimates its own generation of reusable containers, typically by about half. Bulk boxes arrive full and leave flat, so they are invisible in a way that pallets and cartons are not.

One week of counting in a normal month gives you a base rate. Multiply by your expected peak uplift and you have a number you can hand to a supplier, which converts an anxious conversation in October into a booked schedule in August.

The carton mistake

Single-size carton lots from one inbound programme are reusable stock, not recycling feedstock. Baled as OCC they are worth a few cents a pound. Sorted and bundled they are worth forty cents to a dollar eighty each.

During peak, when nobody has time to sort, those cartons go in the baler. The fix is not extra labour; it is a decision made in August about where the receiving team puts them, because they arrive already separated.

Returns, the January problem

Peak has a tail. Returns processing in January generates a second wave of mixed containers and cartons, usually in worse condition and more mixed than the inbound wave. Sites that plan for December and stop are dealing with that one at the worst time of year for staffing.

Build January into the schedule in August. It is the cheapest month of the year to move material, and nobody is competing for the trucks.

Questions

Follow-ups on this post.

We have never counted. Where do we start?
One normal week in July, one tally sheet at receiving, one person responsible. Record item type, size where obvious and quantity. Multiply by your expected peak uplift and you have a number a supplier can schedule against.
What about January returns?
Build it into the August plan. Returns generate a second wave of mixed containers at the worst month for staffing and the cheapest month of the year for freight. Sites that plan to December and stop deal with it at the hardest possible moment.

Nadia Okonkwo-Reyes · September 17, 2024 · Industry

Written at the ReGaylord reload yard, 3259 Fiberglass Rd, Kansas City, Kansas. If any of it is wrong, or you have better data, tell us — several of these posts exist in their current form because a customer argued with an earlier one.

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