Author: Nick Scheffers
Date of publishing: 1st March 2026
The challenge of seasonal peaks. When one is around the corner, retailers around the world will start waking up in a cold sweat, anticipating everything that might go wrong.
There’s a lot at stake during these crucial sales periods. A lot of things that can go sideways.
- Will the distribution center cope with surges in demand?
- Is your allocation accurate enough to prevent stockouts without running the risk of overstock and discounts?
- Can you maintain a steady flow of products, including all variations, to avoid missed sales?
Very often, retailers are stuck in ‘reaction mode’ instead of getting ahead of potential problems.
It can feel like many of these problems cannot be prevented, and the only option is to have a contingency plan in your back pocket and accept the loss.
While I think it’s smart to plan for a range of scenarios, I also believe there are several ways you can avoid problems, without needing to totally re-invent your whole system.
Three seasonal peak checks to give you more room to breathe
The signs of peak season pressure tend to start small, but, from this point, problems can escalate quickly.
I always think that small corrective measures done early-on in the game are more effective than bigger (and less accurate) decisions when the stakes are much higher.
By performing these three basic checks, you can keep your finger on the pulse and take early action.
#1 Check your bestsellers early
You need a clear focus on which products are most profitable and in-demand. The Pareto Principle applies here, so clearly identify the 20% of your SKUs which generate 80% of the revenue.
Then, make sure you have good coverage of all variations in all locations, and adjust your allocation to meet the demand for each location or channel.
Ultimately, you may decide to reallocate or transfer stock (even if that means running out at one location), so you can capture more revenue overall from your high-traffic locations.
For this to work, you need to have a clear view of sales velocities across all locations and channels.
#2 Know your logistical limits
Warehouse workers are busy. Like, all the time. So, when things start getting even busier, they just don’t have time to report it.
There are many small signals that can indicate a warehouse or distribution center is reaching its limit, but they won’t appear on your dashboard. And you cannot wait until that limit is already exceeded.
For this reason, you need to know what your operational capacity is before you reach the limit.
With a clear view over capacity as a fixed upper limit, you can take prioritized action that makes sure you capture the most revenue and margins.
#3 Be prepared to switch modes
Order picking is usually done on a ‘first in, first out’ basis, so older tickets have priority over new ones.
But, when your operations are constrained by an upper limit, it doesn’t make sense to prioritize products that are less profitable.
So, you need the ability to fast-track products that have the best sales potential and items that will sell out the quickest if you don’t.
These often cross a range of traditional segments, such as Fast-movers, Never Out Of Stock (NOOS), and trend-driven items with high margins.
To prioritize these effectively, you need the right data and insights. Then, you can make confident decisions that generate the most profit.
Are you coping with Peak Season demand, or conquering it?
These checks won’t solve all your inventory management issues, but they can lessen the impact when the pressure builds.
Better forecasts and demand planning are a good first step, but I think what retailers really want is the clarity to make the right decisions, even at the last moment.
Too often, seasonal peaks are often seen as a disruption, and something to overcome. But it can also be a tremendous opportunity.
I regularly see that retailers can outperform their competition when they’re able to plan early, focus on detailed insights, and take the right action just in time to capture the best revenue. I am confident your company can operate like this as well.
Until the next edition,
Nick
Quote: Very often, retailers are stuck in ‘reaction mode’ instead of getting ahead of potential problems.
