Are you planning your next (sales) campaign and are not yet sure how your logistics can meet this challenge? Warehousing1 has summarized all the important points you need to know about campaign logistics. So you can take your time and think about whether you want to handle the logistics of certain promotions in-house or externally.
What is campaign logistics?
campaign logistics is the management of temporary promotions. These include seasonal special offers, remaining stock or special offers from the current range. Since such promotions usually involve handling much higher volumes in a short period of time than in day-to-day business, you should analyze the process separately and plan it individually.
- Goods receipt: How are the specific items delivered? On pallets, mesh boxes, in containers or similar?
- Data entry: Does it require personnel effort to enter the products into the WMS ?
- Picking: How do the articles have to be handled? Do they have special sizes, are they fragile, or are they split into individual shipments? How many picks per order are required?
- Additional services: For example, will flyers with discount codes be included with the packages?
- (Express) shipping: How quickly do the products need to arrive and can timely delivery be guaranteed?
In most cases, said promotions are additionally advertised. This is usually done digitally, but there may also be cardboard displays, posters on advertising pillars or coupons in newspapers with a wide reach. This part is also usually taken care of by the campaign logistics.
Here's an example: Your online store has a cooperation with a local supermarket chain - specifically, your advent calendars are to be presented and sold on displays in the stores for a certain period in the run-up to Christmas. This allows you to bring new products in trial format to your customers and compare sales trends after the promotion.
The logistics process of campaign logistics starts directly at goods receipt, i.e. at the point when your goods reach the warehouse. After picking, the packaging step is more complex than for standard articles. In this step, the advent calendar must first be assembled, then the sweets are placed in the advent calendar and closed again. Then the individual pieces are shrink-wrapped in plastic film and finally labeled. In addition to the advent calendars and the display, each package also contains a plastic stand and assembly instructions. The next step is to add flyers, postcards and special gift wrapping to the packages. Then your advent calendars are ready to be shipped.
What is the added value of campaign logistics?
✔ Promotional logistics can be used to increase customer loyalty. Deliver a unique sales experience to your customers and make your products stand out from the crowd with a clever presentation and an unusual marketing campaign. This will effectively build your customer base and increase the chance that you will attract returning customers.
✔ Promotions are important variables to consider in your marketing mix. If your promotion has the potential to go viral on the Internet, you can expect more impressions and clicks on your website. Example: BVG x Adidas - The launch of a sports shoe that doubled as an annual BVG ticket generated 10.6 billion impressions and a media equivalent value of 17.2 million euros.
✔ Promotions are generally also associated with an increase in sales. Therefore, give sufficient thought to your budget and set realistic sales targets in advance.
The challenge of campaign logistics: internal vs. external solution
Internal campaign logistics
The biggest challenge when setting up campaign logistics internally is not only creating the concept, but above all the operational implementation. When it comes to packaging, warehouse personnel have to work on a piecework basis under time pressure - several thousand products within a few days is not uncommon. This is a volume that can rarely be handled reliably with the company's own capacities. In addition, promotional logistics also means more work steps required than in normal day-to-day business, as marketing effect is achieved with elaborate packaging, for example. This can quickly overwhelm your internal setup, especially in terms of increased staffing requirements, training/education of employees and technical requirements for data collection of the respective promotion.
Bottom line: Put cost efficiency first. If your own capacity is dictating or slowing down the action it's time to think about an alternative logistics setup. Operational hurdles should not inhibit the very idea.
External action logistics
✔ Expertise: Trained personnel already bring a lot of know-how in action logistics. This means that the concept can be put into practice quickly and cost-effectively. Through experience, an external service provider can also advise you on the implementation of the concept and suggest possible improvements in packaging.
✔ Scalability & cost savings: External service providers convince with sufficient capacity - even for large volumes. On the one hand, this saves you money thanks to scaling effects through attractive conditions. On the other hand, in the event of short-term peaks or even sickness among the workforce, remedial action can be taken quickly and delays ruled out.
✔ Existing resources: You do not need to invest in a costly IT structure because common systems are already in place at external service providers. This allows you to track all relevant KPIs and measure the success of your campaign. Here, too, the consulting activity of the external service provider helps to properly measure and evaluate your campaign.
✔ Structured work: This is especially important when adhoc high volumes are required and many orders reach the warehouse in a short period of time. In the case of recurring seasonal promotions, the required campaign logistics usually only need to be set up once initially - here you can benefit from the resources and experience of your external partner.
Campaign logistics means more effort than it is the case in everyday business. In most cases, promotional logistics cannot be managed internally without a large investment of time and personnel. Therefore, it makes sense to outsource the processes to external service providers who already have a lot of experience in this area. Therefore, look for a suitable service provider that meets your requirements. Ideally, this logistics provider has already carried out similar projects efficiently and cost-effectively.
When it comes to finding a logistics partner for your next customized sales campaign, Warehousing1 is your perfect contact. Through our network, we have an overview of the logistics market and can assess the profiles of our partner service providers using our WH1 Quality Score© . Our account managers personally take care of finding the most suitable logistics provider for your promotions. So nothing stands in the way of carrying out your next campaign logistics. Contact us today for your personal initial consultation, we look forward to hearing from you!