Bridging the Peak-Season Performance Gap

The disconnect between peak-season confidence and actual performance continues to haunt supply chain leaders. As our recent industry research revealed, while 93% of executives entered the 2024 peak season confident they would meet customer expectations, a sobering 58% struggled with delivery timing and order accuracy when the pressure intensified. This confidence-to-reality gap isn’t just a statistical curiosity — it represents millions in lost revenue, damaged customer relationships, and operational inefficiencies that ripple throughout the supply chain ecosystem.

A post-peak season analysis reveals three distinct areas where the gap between expectations and reality was most pronounced.

System performance limitations. Pre-season, 70% of executives expressed strong faith in their fulfillment systems. Post-season data showed that only 42% achieved successful system performance during peak demands — a 28-point confidence gap. The culprit: fragmented systems architecture that couldn’t support dynamic response to shifting demand patterns.

Many organizations discovered too late that disconnected warehouse management and order management systems created information silos that hampered inventory visibility and cross-facility coordination. When order volumes surged, these architectural limitations became bottlenecks that prevented agile decision-making.

Labor management challenges. Perhaps most troubling was the 51% of organizations that planned to rely on traditional approaches to automation plus seasonal hiring, only to find that 65% experienced significant staffing challenges during peak season. The labor equation has fundamentally changed, with constant turnover and training challenges highlighting a critical need for more sophisticated workforce strategies.

As one logistics leader in our study noted: “Balancing the cost of labor with business profitability was tough, especially when we had to pay overtime or hire temporary workers.” This sentiment echoed across organizations regardless of size or sector.

Inventory visibility issues. While most organizations claimed comprehensive inventory visibility in pre-season assessments, post-season data revealed that 48% struggled with real-time inventory accuracy across multiple fulfillment nodes. This visibility gap directly impacted customer satisfaction, as promised stock couldn’t be located or allocated efficiently.

A Strategic Framework

Rather than treating these as isolated problems requiring tactical fixes, forward-thinking organizations are adopting a strategic framework for peak-season resilience. Following is how supply chain leaders can bridge these performance gaps for 2025.

Unified systems architecture. The fundamental prerequisite for peak-season success is a unified systems architecture that provides real-time visibility across the fulfillment network. This doesn’t necessarily mean replacing all existing systems, but rather ensuring they communicate effectively through:

Integrated middleware: Connecting disparate systems through integration layers that enable real-time data synchronization.
Unified data models: Standardizing how inventory, orders and fulfillment data are structured and accessed.
Exception management automation: Building supply chain intelligence that identifies and resolves discrepancies before they cascade into major problems.

Supply chain leaders should evaluate their technology stack not just for core functionality, but for how well it supports peak volume without degrading performance or accuracy. The ability to maintain visibility and control under stress is the true test of system resilience.

Workforce augmentation strategy. Rather than simply hiring seasonal workers, leading organizations are fundamentally rethinking workforce management through the following:

Artificial intelligence-driven labor forecasting: Using advanced algorithms to predict staffing needs with unprecedented accuracy.
Simplified workflows: Redesigning processes to reduce training requirements and accelerate productivity.
Cross-training programs: Building versatility into the permanent workforce to flex with changing demands.
Mobile-first engagement: Deploying intuitive applications that reduce training time and improve task completion.

The goal isn’t just to fill positions but to create a more elastic workforce that can scale efficiently without sacrificing quality. Technology plays a crucial role in this transformation, but must be designed with the human element in mind.

Inventory intelligence. The foundation of customer promise fulfillment lies in inventory intelligence — knowing with certainty what you have, where it is, and how quickly it can be deployed to meet customer expectations. Leaders are focusing on the following:

Distributed inventory models: Strategically positioning inventory closer to demand to reduce fulfillment time and transportation costs.
Predictive allocation: Using AI to predict where inventory will be needed and proactively positioning it accordingly.
Real-time adjustment capabilities: Building systems that can rebalance inventory across nodes as demand patterns shift.

This approach requires moving beyond basic inventory management to true inventory intelligence — systems that not only track what you have, but provide insights on how to deploy it most effectively.

Measuring What Matters

Proper metrics are the compass that guides peak-season preparation and execution. Our research identified specific performance indicators that correlate strongly with peak season success:

Operational metrics: Target 99.9% inventory accuracy and 30% reduction in picking errors.
Customer experience metrics: Maintain 98% on-time delivery rates and 99% order accuracy.
Financial metrics: Aim to reduce labor costs by 20% and improve inventory turns by 15%.

These aren’t arbitrary numbers. Organizations that achieved these benchmarks consistently delivered strong peak-season performance regardless of unexpected challenges.

As one retail executive noted in our study: “A KPI [key performance indicator] is not the same to the customer, the operations person, or the analyst. It’s about building standard processes that scale and normalize data across systems.” This insight underscores the importance of aligning supply chain KPIs with stakeholder expectations.

A Timeline for Success

With peak season preparation beginning earlier each year, supply chain leaders should consider this phased approach:

Q2 2025 (April-June):