According to PAGASA, the climate in the Philippines is characterized by two main seasons: the monsoon season spanning from June to November, and the dry season running from December to May.
In the Philippines, March through May is usually considered the summer peak season. This time of year has less rain, which makes it perfect for outdoor activities, beach excursions, religious gatherings, and local festivities.
Peak Season: High Logistics Market Demand In Summer
In the logistics, the summer peak season—along with Christmas and New Year’s—are considered to be among the busiest. This are the reasons:
Higher Demand for Beverages
Beverage production facilities increase output and shipments to supermarkets, convenience stores, and other retail outlets in order to meet the seasonal demand from consumers trying to escape the heat.
Holidays and Vacations
Beach basics like sunscreen lotions, swimwear, and goggles, among others, are in high demand due to the influx of both locals and tourists to beaches and resorts. In order to accommodate the growing demand, shopping malls, retailers, and convenience stores need to increase their inventory of these commodities.
Since they import a range of commodities and items via balikbayan boxes from their host countries, the flood of Filipinos working abroad and returning home also increases the demand for logistical services. Usually filled with supplies, presents, and personal items, these boxes are sent to various provinces across the nation.
Need for Air-Cooling Products
Individuals yearn for home comfort in the face of escalating temperatures and changing climates. As such, there is a seasonal increase of market demand for air-cooling appliances including air conditioners, coolers, and electric fans. Logistics is crucial to guarantee the prompt delivery of these appliances.
Seasonal Products and Promotions
Retailers also roll out grand sales promotions tailored for the summer months to attract more customers. They provide discounts on food and beverage items, summer clothing lines, and outdoor recreational equipment, among others. Consumer activities during summer also increase, a 2010 study shows. The study revealed that exposure to sunlight significantly boosted consumer spending and the amount spent per item. When people are outdoors and socializing more, they are also more inclined to buy gifts for their friends rather than for themselves in warm weather compared to when they are in cold temperatures.
More Infrastructure Projects
During the summer season, infrastructure projects in the Philippines experience a surge in activity due to the favorable dry weather conditions that provide an optimal setting for construction work. This leads to delivery demand due to a higher need for transporting construction materials, equipment, and machinery to project sites.
Rise of Home Repair Activities
Filipino families are leveraging the summer peak season for construction and home improvement activities. Before the dry period transitions into the rainy season, households are rushing to finalize critical repairs such as roof leaks. This surge in repair activities is driving up the need for construction materials, tools, and equipment, all of which necessitate shipping.
Harvest Season and Agricultural Activities
Summer is a bustling season for farmers, with crops ripening for harvest. The dry weather heightens the need for irrigation systems, fertilizers, and other farming necessities. This surge in market demand extends to agricultural logistics services like transportation and storage of harvested crops.
Various Festivals, Cultural Events, and Social Gatherings
The summer peak season in the Philippines is also marked by various festivals and events, such as fiestas, religious celebrations, and cultural gatherings. Weddings, reunions, and other social gatherings are also usually held during summer. These events often require logistics support for transportation, setup, and distribution of goods and materials especially in major cities.
7 Ways To Prepare For High Logistics Market Demand
To mitigate volatility and capacity disruptions in supply chains, companies should prepare before peak shipping season surges occur. Below are effective strategies to help you ensure your business not only survives but thrives during this period.
1. Agile Forecasting and Planning
By examining historical data, consistent trends, and market activity, businesses can anticipate the surge in product and market demand expected in the summer.
2. Identify Weaknesses In Your Systems
Evaluate your needs in your current logistics operations to pinpoint potential bottlenecks or weaknesses in the system.
3. Increase Inventory And Expand Warehouse Capacity
A sure way to maximize profit during the summer peak season is to increase your inventory to meet the high logistics demand. Keep in mind that increased volume creates opportunities for the business.
4. Invest in Temperature-Controlled Storage Solutions
For businesses dealing with perishable goods, investing in temperature-controlled storage or cold-chain solutions is a non-negotiable during summer. It can extend product life and maintain quality, which are critical for customer satisfaction.
5. Optimize Order Fulfillment Processes
Order fulfillment process must be improved for quicker processing. Businesses should embrace automation to maximize lead time and tackle high market demand efficiently while maintaining precision.
6. Explore Multiple Delivery Options
Customers appreciate choices. Businesses can provide clients with several delivery options such as standard, expedited, or same-day delivery to cater to their unique needs and paying capability. It is also a sure way to manage expectations and foster transparency in delivery timelines
7. Expand and Diversify Your Logistics Network
Businesses often partner with flexible delivery service providers like Lalamove and Transportify, which can cater to same day deliveries or book in advance for the next day or week of deliveries. With their service, you can ensure reliable transportation services during the peak season.
As they say, don’t put all your eggs in one basket. Preparing for shipping in summer peak season and by negotiating with multiple providers will provide you with backup option, when average delivery volumes increase.
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