"We need to be prepared": Challenges and solutions for the logistics sector during the "black week".
David Martinez, CEO of Proequity.
Madrid, 23 November 2023. On 24 November, Black Friday will be celebrated in Spain, a time of great activity and full of challenges for the logistics sector. A date to which is added Cyber Monday and now also, as a novelty for this year 2023, BlackShopping with live sales and entertainment. This day, and now week, has become a key moment that prepares retailers and encourages shoppers to bring forward their Christmas shopping period. Thus, the months of November through to January see a huge increase in commercial activity in both the retail and logistics and transport worlds.
According to data from Statista, an international statistics portal, more than half of Europe's population does their regular shopping online. Already, many people reserve the week of special offers, known as Black Week, in their calendars for their shopping. A fact that undoubtedly translates into a considerable increase in activity in the logistics sector. According to the Spanish Logistics and Transport Business Organisation, by 2023 logistics and transport companies will handle around 108 million shipments during the upcoming Black Friday and Christmas campaigns, which represents an increase of 6.8% compared to the previous year.
This is a season where the logistics sector plays a fundamental role and, therefore, companies must be prepared and propose the corresponding solutions to meet the expectations of the market and their customers. This marketing year poses significant challenges. Supply chain management becomes more complex and, in many cases, requires careful planning and investment in technology to ensure that products reach consumers on time. The pressure on logistics and transport companies to maintain high standards of quality and speed is increasing, and these companies must rise to the challenge.
It is just as important to implement effective logistics solutions as it is to invest in increased staffing during this season.With increased activity comes increased employment in the sector. For the 2023 season, around 25,457 new hires will be generated, according to Randstad data. It is expected that during this campaign the number of people affiliated to social security will rise to 1,070,000 workers, which represents an increase of 4.6% compared to the over-hiring registered during the previous campaign and 2.4% more than the average for the year, according to the data provided by the Logistics and Transport Business Organisation.
In addition to these solutions, and in order to achieve results with a positive impact, the implementation of a sustainable service with a lower environmental impact has been added. Implementing sustainable practices, such as optimised routes and lower emission vehicles, can lead to faster and more efficient deliveries. This improves customer satisfaction and competitiveness in the e-commerce market.
In this respect, it is worth mentioning that already quite a number of consumers are actively looking for sustainable products and services. Therefore, logistics companies that adopt environmentally friendly practices can access market segments that value sustainability, which is a plus point for them.
Overall, in order to ensure a more efficient and sustainable pre-Christmas campaign, logistics companies and online firms alike need to consider in advance how to manage the season and implement effective logistics solutions to cope with the high demand. These solutions range from the incorporation of technological tools to the expansion of human resources with an increase in staff.
About ProEquity
ProEquity is the leading consultancy firm in real estate operations within the industrial and logistics sector. Founded in 2008 in an adverse scenario for the development of a new business, the company has been able to adapt to the demands of a changing market.
The team that makes up the entity has more than 20 years of extensive professional experience in different segments of the real estate sector. This allows it to offer a comprehensive advisory service to its clients with the aim of obtaining the best results for their real estate projects, which range from the purchase, rental or development of initiatives for the creation of warehouses or turnkey logistics platforms. Likewise, advice is also provided on investment, land or the development of works.
In this way, Proequity has offered services to a wide range of clients, including investment funds, retailers and logistics operators, among others.