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Logistics Library

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Preparing for Q4: Volumes, Capacity & The Waterfall
It’s critical to understand the volumes and capacities you’ll be dealing with through Q4. Your 3PL can only plan effectively if you’re giving them up-to-date data and in doing so, you’re also gauging whether they’re truly the right partner moving forward. Ask yourself: - Can they pull additional levers when demand spikes? - Can they add shifts or re-engineer processes to unlock capacity and hit sales targets? The Waterfall Method One tool I rely on heading into peak is The Waterfall. It starts with: - Forecasted Demand (Sales Team Data) - Forecasted Output (3PL Data) This baseline instantly highlights whether a backlog risk exists. As you move through the days and weeks, layer in the Actual Demand and Actual Output to see how reality compares to plan. This ongoing view helps you course-correct early, before the backlog snowballs. Reading the Signals If the backlog trend starts climbing, it’s time to activate levers: weekend shifts, PM shifts, overtime, or temporary resources. Keep in mind: - If your 3PL is failing SLAs, they should absorb the cost. - But if your volumes exceed forecast or contract, you may need to share the load. Open Discussion - How do you approach Q4? - What reports or dashboards do you rely on most? - And what levers do you pull when forecast blows past plan?
Preparing for Q4: Volumes, Capacity & The Waterfall
1 like • Oct 7
When prepping for peak periods I believe the key is to start as early as possible to provide plenty of time to secure additional team members to train prior to the increase of volume, and additional MHE, if required. They are the levers that we would look to pull plus overtime, weekends and the option of additional shifts. I use internal dashboards that tracks the forecasted sales demand in revenue and in cartons overplayed by actuals plus the outbound throughout completed by the warehouses.
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Erin Koukides
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