How to Deal with Delivery Disruptions: 5 Strategies to Build Resilience into Your Shipping Operations

The ongoing?Canada Post strike presents significant challenges for Canadian retailers. Most carriers are already at peak capacity to meet their existing contractual obligations to their partners for the peak season. Adding additional capacity in a mostly fixed-volume system during the year’s busiest shipping period has proven difficult for businesses that weren’t prepared with strategies to pivot their delivery options.

By understanding the situation, using alternative carriers, and staying informed, you can future-proof your business operations to weather disruptions, maintain customer trust and stay ahead of your competition.

How can you build a resilient logistics operation that meets customer expectations and propels your business forward in the face of disruption?

Here are 5 strategies to get started…

Plan for the Future

Service disruptions inevitably result in demand shifts. That’s why it’s better to plan ahead than to sit back and wait for things to “normalize”. Retail supply chains need to evolve, and today’s impact can help inform the next phase of your logistics.

• Look at how sales forecasts, new product lines, and customer demand are shifting.
• Adjust outlooks of where the company’s supply chain needs to be in six months.
• Assess your logistics supply chain and its ability to serve the future of the business.

Diversify Your Carrier Options

Multi-carrier shipping models reduce risk within logistics operations and build consistency in shipping expenses. Diversified carrier operations ensure retailers maintain reliability with backup options in case one carrier is unavailable or can’t deliver the required capacity when it’s needed. A multi-carrier system can also help address consistent delivery times and costs.

Rely on Logistics Experts

Suppliers shouldn’t wait until their warehouse is stretched and shipments are late before they enlist the help of a 3PL. Allowing a 3PL to do the heavy lifting allows businesses to reduce costs, rely on flexible capacity, and quickly expand when needed. During market changes, they can help scale your logistics operations up or down quickly, building a more resilient supply chain and consistent pricing.

Build Strategic Partnerships

Leveraging partners in your network can be the key to resiliency. Work with key suppliers and business partners to improve data share and supply chain visibility.?Building a value network takes time and requires a clear understanding of how your own value is perceived. Still, the right partners are often the easiest path to shore up a business during a disruption or a retail business to capitalize on growth opportunities.

Put Data in the Mix

Understanding and tracking your shipping capacity and ability to increase volumes becomes essential for growth. A nimble supply chain with accountable data collection allows a business to move quickly and not miss an opportunity. Capacity information prepares you to take advantage of every opportunity that comes your way.

Canada Post Strike FAQs

When did the strike start?

The strike began on Friday, November 15th, 2024.

How long is the strike expected to last?

The length of the strike depends on the progress of negotiations between Canada Post and CUPW. The strike is ongoing as of December 2nd, 2024.

What services are affected by the strike?

The strike is affecting all mail and parcel delivery services across Canada, including regular mail, priority mail, and parcel delivery.

Impact of Canada Post Strike on Canadian Small-and-Medium-Sized-Businesses

Many businesses rely on Canada Post for affordable shipping, especially during the busy holiday season. Peak season has arrived, and it is important for retailers to effectively manage their orders to prevent backlogs and purchasing slow-downs.

• Delayed deliveries can damage customer trust and brand reputation, particularly if they have already purchased the item.
• Businesses that internally manage logistics are potentially at risk of not delivering.
• Relying on a single carrier limits flexibility to address surges during the peak holiday season.

Steps You Can Take Right Now

• Manage Buyer Expectations: Update store settings to indicate extended handling duration to reflect longer delivery timelines.
• Proactive Communication:?Be open and transparent with customers to inform them of the likely impact of this strike. This is important if you rely solely on Canada Post and have taken a larger volume of orders that are already in the shipping system.
• Diversify Your Carrier Mix:?Reach out to regional 3Ps to secure any excess capacity they may be able to offer you.?