The Peak Season Reality Gap: What Retailers Must Do Differently in 2025
In retail, confidence is a double-edged sword. Our recent industry analysis revealed a startling disconnect: while 93 percent of supply chain leaders entered the 2024 peak season confident they would meet customer expectations, post-season data showed that 58 percent struggled with delivery timing and order accuracy. This 35-point gap between expectation and reality cost retailers millions in lost revenue, damaged customer relationships, and operational inefficiencies.
The Confidence-to-Reality Gap
The most notable disparity emerged in technology systems' performance. Pre-season, 70 percent of executives expressed strong faith in their fulfillment systems. However, post-season data revealed only 42 percent achieved successful system performance during peak demands. This 28-point gap highlights a critical misalignment between perceived and actual technological readiness.
What's driving this gap? Our analysis points to fragmented systems architecture as the primary culprit. Organizations struggling with disconnected warehouse management systems (WMS) and order management systems (OMS) found themselves unable to respond dynamically to shifting demand patterns. Those relying on legacy systems or partial integrations faced particular challenges in maintaining real-time inventory visibility and coordinating cross-facility operations.
The Labor Equation
The labor situation compounds these challenges. Pre-season planning focused heavily on traditional approaches, with 51 percent of organizations planning to rely on a combination of automation and seasonal hiring. However, a staggering 65 percent reported significant staffing challenges, leading to reduced efficiency and increased operational costs.
Constant turnover and training challenges highlight the critical need for technology that's accessible and intuitive. As one retail leader noted in our research: "Onboarding new employees takes a lot of time and resources, and we need to streamline that process."
Charting a Different Course for 2025
Based on our findings, here are four actionable strategies retailers should implement now to prepare for a more successful 2025 peak season:
- Pursue system integration. Organizations must prioritize platforms that unify warehouse management, order management, and inventory visibility. Real-time visibility across the entire fulfillment network enables dynamic inventory allocation and order routing, critical capabilities during demand surges.
- Rethink workforce optimization. Modern supply chain technology now offers sophisticated solutions for labor optimization beyond basic scheduling. Advanced intelligence solutions can leverage artificial intelligence to predict labor needs with unprecedented accuracy, while mobile-first applications streamline communication and task management.
- Focus on customer experience technology. Implement sophisticated order management capabilities that handle complex fulfillment scenarios while maintaining high accuracy. Set ambitious but achievable targets — 98 percent on-time delivery rates and 99 percent order accuracy — and build your technology strategy around these key performance indicators.
- Adopt a phased implementation approach. Begin core system deployment in early 2025, followed by advanced capability rollout midyear, with optimization initiatives in the pre-peak period. Comprehensive training and clear communication strategies are essential for successful technology adoption.
Measuring Success
Clear performance metrics across multiple dimensions will be essential. For operational efficiency, target 99.9 percent inventory accuracy and a 30 percent reduction in picking errors. On the financial side, aim to reduce labor costs by 20 percent and improve inventory turns by 15 percent.
As one retail leader aptly noted, "A KPI 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." A future-ready supply chain platform shows you how to establish clear supply chain KPIs that are essential to various stakeholder roles in your organization and are in-scope, timely and actionable.
The gap between prediction and reality in 2024 should be a wake-up call for our industry. As organizations seek to improve performance in 2025, technology investments must focus on creating resilient, adaptable operations capable of meeting the ever-increasing demands of peak season fulfillment. Those that embrace this challenge and invest strategically will be best positioned for success in the years ahead.
It's time to face the truth — and do something about it.
Josh Lett is senior vice president of professional services at Deposco, an end-to-end WMS and OMS platform.
Josh Lett is a seasoned supply chain executive with over 13 years at Deposco, where he has risen through the ranks from Senior Director to his current role as Senior Vice President of Professional Services. With a Bachelor of Science in Industrial Engineering from Georgia Institute of Technology, Josh has established himself as an expert who combines executive-level strategic thinking with hands-on technical expertise. His ability to simplify complex concepts while maintaining an unwavering focus on customer success has been instrumental to Deposco, where he continues to drive business strategy and best practices.
