Executive Summary
- Fulfillment time dropped 40% compared to 2021
- Transit time is up to 20% lower compared to 2021
- Overall Click to Delivery time decreased by nearly 2 days compared to 2021
2021 was a hard year for supply chains everywhere. Between labor shortages, minimal trucking capacity, new strains and surges of Covid-19, and limited inventories, it’s a true Christmas miracle that gifts made it under trees nationwide. This year has been quiet with no alarm bells jingling about how gifts will arrive on time.
Overall peak season for 2022 has been smooth sailing due to a few key differences:
40% Drop in Fulfillment Times
Fulfillment time measures the amount of time it takes for a retailer to pack and ready an order for shipment once the order is placed. In 2021, warehouses were short-staffed and inventory was scarce. This year, there are fewer staffing issues and many retailers are reporting too much inventory. This has led to a 40% drop in fulfillment time during the week of Black Friday and Cyber Monday, which is the peak week of holiday sales. With the increased bandwidth and inventory, it took more than a day less this year to pick and pack orders for shipment.
Lower Transit Times
In 2021, trucking capacity was stretched to its limit and it showed with transit times taking longer than usual. This year, retailers continued to diversify their carrier network to increase their capacity and mitigate risks of delays. Carrier network capacity is also in better shape this year. While there are still driver shortages, Covid-19 rates are lower and the drivers in-network are healthier and more able to work. For these reasons, transit times have remained up to 20% lower than this time last year.
Nearly 2 Day Decrease in Click to Delivery Time
Because of the overall improvements to supply chain health, we are seeing a much lower Click to Delivery rate this year. As mentioned in our State of Parcel December Report, we’ve seen some week over week increases mostly driven by transit times, but overall 2022 is showing lower lead time from order to delivery. Peak week in 2022 was nearly 2 days faster than 2021.
Summary
While supply chains have yet to fully recover to pre-covid levels, there has been a massive improvement year over year, which is expected to continue. Thankfully for Santa, he and his elves are not going to have to put in overtime this year to make Christmas happen.
About project44
project44 is on a mission to make supply chains work. As the supply chain connective tissue, project44 operates the world’s most trusted end-to-end visibility platform that tracks more than 1 billion shipments annually for over 1,200 of the leading brands, including top companies in manufacturing, automotive, retail, life sciences, food & beverage, and oil, chemical & gas. Using project44, shippers and carriers across the globe drive greater predictability, resiliency and sustainability.
The undisputed leader in the market, project44 was named the Leader in the Gartner Magic Quadrant, #1 in FreightWaves FreightTech 2022, the Customer’s Choice in Gartner Peer Insights Voice of the Customer report. project44 is headquartered in Chicago with a diverse team spanning 17 global offices. To learn more, visit www.project44.com.
For questions or comments:
press@project44.com
Disclaimer: The information conveyed herein, shared solely for summary and not contractual purposes, comes from both project44 and third-party reporting. The project44 data does not include all available market information, and project44 has not undertaken to independently verify the third-party reporting. Similarly, this type of data changes from day-to-day. Accordingly, the reader should not rely on this reporting to make any business decisions, and project44 expressly disavows any liability arising from any such reliance.
Back to More