How to identify peak trading issues early!

Spotting issues early during peak trading

Hatmill’s Alex Hirst shares some early warning signs that may warrant further investigation as you approach peak trading as the earlier you can identify an issue, the quicker you can act and minimise its impact.

Did you do a post-peak review last year, or you did but didn’t take any action?

While it is easy to switch off after peak and breathe a sigh of relief that it all went to plan or simply that it is  over, he first action should be to complete a post-peak review. While different operators will have different methodologies, as a bare minimum, you will need to cover:

• What went well? Who needs to be celebrated for their positive impact during peak? What area outperformed your expectations and how can we better utilise that area for next year?
• What didn’t go well, and more importantly, why? Depending on the size of the issue, this might take the next 12 months to fix or might not be fully rectified by next year, e.g. if you have outgrown your current warehouse, you might have to split the operation for next peak before a purpose-built facility is ready.
• What were the bottlenecks of the operation? What is due to change within the next year, which you will have to change the operation to deal with?

Ensure a post-peak review is run, actions are captured  and completed. This should be the  priority after peak, while the successes and opportunities are fresh. 

Are you up to date with your MHE/automation servicing and maintenance?

Whether you have a complicated ASSR (automated storage retrieval system) feeding a cross-belt sorter or a few FLT’s (forklift truck) and a run of conveyor, your hardware needs to be primed for peak. The last thing you want on the busiest day of the year is a critical piece of hardware breaking down and halting the whole operation.

Ensure that PPM (planned preventive maintenance) is scheduled into any operational modelling during peak to ensure that this doesn’t impact the operation.

Do you have a clear onboarding and training process for agency staff?

Most operations will require a significant uplift in resource during peak, and bringing in additional resources comes with risk. You are trying to find competent, suitable resources at the exact same time as the rest of the market.

It is crucial that you have a clear training and onboarding process which has designated milestones. Due to the high number of new recruits during peak, many organisations find themselves inundated with agency staff but are unable to identify the poor performers until after peak has already gone.

Ensure you have a pre-agreed plan and have a clear view of how you will manage the new employees’ and/or agencies’ performance. Also, ensure that the permanent, experienced  colleagues are split equally across shifts/teams, this will help to flatten out the impacts of any inexperienced operators. 

Are you are struggling before peak has even hit?

Things rarely, if ever, get easier during peak. If you aren’t hitting all your KPIs and SLAs prior to peak, this is certainly a bad omen for the coming months.

The off-peak period should be used to test out new processes and SOPs (standard operating procedures), in an attempt to refine the operation and improve efficiency. 

Do you have a clear resource model?

The model should give a detailed view of each activity within the operation, its capacity, resource requirement, productivity rates, etc. All these assumptions should be signed off by the relevant SME and provide you with an accurate view of your capability during peak.

While you will likely have to adapt your plan to deal with unforeseen circumstances, you need to have a clearly defined resource model. 

Do you have a contingency plan which can quickly be deployed?

When planning for peak you should always “hope for the best and plan for the worst”. When planning for the worst, it is important to identify the possible bottlenecks and single points of failure in your operation. You will also need to score each failure point on probability and impact. Those areas that have a high probability of failing and high impact should be monitored most closely. Sometimes it is helpful to use a risk log for this, you are then able to refer to it during peak and action any mitigations necessary.

The plan should be built with all the key operators and be communicated and trained well before peak. If required, it will be deployed by a team that is already aware of and bought into the recovery plan.

Do you know when to call for additional support?

In our 15+ years of operation, we have supported dozens of businesses in the lead up to peak and getting business back on track when operations have collapsed during peak. Below is an example of Hatmill supporting operations during peak.

Case study: A poorly managed warehouse transition, led to a growing order well and no sign of recovery

During their transition from multiple sites to a single site solution, the client encountered issues. The new operation couldn’t process the required orders as the operation was having issues with new systems and processes.

When Hatmill were engaged, the operation was 3 weeks behind on orders. A team of three was dispatched to assess the operation and agree a recovery plan, which included:

• Assessing the capability of the old site and supported stock transition
• Assessing the operation and writing the relevant SOP’s, as well as training them out
• Managed the relationship with the agency to ensure we had adequate well trained colleagues
• Managed the relationship with the MHE provider to secure additional MHE and the required training within a short timescale
• Supporting the stock and system Team, developing a plan to gain a clear view of the stock file and ensure its accuracy
• Managed day-to-day operations including the management of the order well
• Built plans and project managed the urgently needed system upgrades. We project managed the development of the plans and execution
• Owned the comms back into The Board, including running daily sessions with The Board

The benefits of bringing in expert supply chain and logistics support from Hatmill!

By the time we had completed our work the site was up to date on the order well, had a stabilised operation and we had implemented solid foundations ready for a successful peak.

If you need support pre, during or post peak, please contact Alex or any of the Hatmill Team. And remember it’s never too early to start planning for peak!