By Nick Hoare, Co-founder and Director at Prolog Fulfilment
Most brands treat Q1 as a recovery period which is understandable. The Q4 dust has settled, and memories of the stressful peak season start to recede. So, they take a well-earned rest and wait for spring. But for those organisations that are committed to successful growth, Q1 can be the most critical strategic window of the year. Depending in the seasonality of your sales, it is often the only time in the calendar where volume is low enough to review where you are and, whether you hit your revenue targets or missed them, the operational cost of getting there is now visible.
This is the perfect time to safely overhaul broken infrastructure without risking revenue and move away from reactive fire-fighting mode and into proactive strategic planning. In January and February, order volumes are typically at their lowest. This creates a ‘Golden Window’ to execute strategic projects. like migrating 3PLs, integrating a new ERP, or overhauling inventory logic – with minimal disruption.
In simple terms in Peak, you didn’t have time to investigate problems. Now you do. Here are some suggestions of the priorities we recommend tackling in the next few months.
Find the Leaks
Ask for a raw Q4 variance report. Not just a summary but all a fully detailed report. Did stock physically disappear? Or did your systems stop talking to each other? If your WMS doesn’t match your storefront, you might be flying blind.
Kill Dead Stock
Identify SKUs with low turns over the past 6 months. Storage fees on stagnant inventory are silent profit killers. Identify SKUs with <10 turns in the last 6 months. Bundle them, discount them, or liquidate them. Stop paying rent on dead weight.
Returns Triage
The longer a return sits, the less it’s worth. Clear the Q4 backlog immediately. If a return isn’t inspected and back online (or written off) within 48 hours, your reverse logistics process is broken.
Now you have the information it might be time to make the hard decisions.
Audit and Switch
If your 3PL failed to perform during Peak – missing cut-offs, drowning in backlog, or ghosting your team it’s probably time to move. After all, loyalty doesn’t scale brands. Performance does.
Tech Stack Alignment
Overselling happens when data lags. Ensure your ERP, WMS, and Shopify/Magento instances are syncing inventory in real-time. Stress-test these integrations now, not in November.
Carrier Renegotiation
Don’t accept 2026 rate hikes blindly. Use your consolidated Q4 volume data to negotiate better terms. If you are growing, you should be paying less per unit, not more.
Now that’s done – prepare to accelerate!
International Readiness
Opening new territories? Validate your HS Codes and DDP (Delivered Duty Paid) setup now. Nothing kills customer LTV faster than a surprise customs bill at the doorstep.
Unboxing Refresh
Review your dimensional weight. Are you shipping air? Optimizing packaging size by even 10% can have a massive impact on net margin across the year.
Capacity Lock-In
Finalize your H1 growth forecasts and get a written capacity commitment from your logistics partner. Don’t assume the space will be there when you need it.
Conclusion
Many e-commerce brands treat operations as a cost Centre – something to be minimised but brands that win treat operations as a competitive advantage – an engine to be optimised. Q1 is often the only quiet moment you get all year. Use it to build a machine that can drive your growth and find the right fulfilment partner to support you. Or you might spend next November firefighting again.
We’ve put together a Q1 Operations & Fulfilment Roadmap to help brands reset and set themselves up for growth in 2026. Download the guide here: https://prologfulfilment.com/the-q1-2026-operations-and-fulfilment-roadmap/
