564: Discover Why Peak Season Is A Margin-Making Event, Not An Ops Event, with Shipium

Geoff Tamman of Shipium & Dean Freson of ODW Logistics talk about reframing peak season as a margin question; simulation; network redesign; & demand surcharges.

IN THIS EPISODE WE DISCUSS: [03.08] Why peak planning conversations are almost always about capacity, labor, carrier commitments – but much less often about margins.

"It's an overlooked topic, until it's too late… A small rounding error in August is multiplied exponentially in December – that one penny becomes millions."

[05.25] People, systems, or carriers – the first thing that breaks on your worst peak day.

"Peak is a four letter word, but the real four letter word is cost. Those peaking surcharges, volume tiers… How are you managing those components, to ensure you're putting the right capacity in the right carrier in the right method, to manage cost structures and margins?"

[07.52] What you can still influence in October, and what's already locked in.

"If you haven't already, take a second look and audit your contracts."

[11.20] When you hit peak, the network runs hot and volume triples; the cost per parcel changes first, and what often surprises people.

[12.52] Managing demand surcharges, and what cost can look like at different times of year.

[16.44] How you can determine whether you're making money during peak, instead of waiting to find out in February.

[18.25] The signals to look at in the first week of peak that tell you whether the network is still economically healthy, rather than just keeping up with volume.

"Start to pay attention to the lanes, the origins and destinations."