As the holiday season approaches, retailers are working diligently to get right the crucial elements of logistics and supply chain so that customer expectations of timely delivery and customer service are met.

Why so much extra effort? They are hoping to avoid the logistical nightmare that unfolded last December at UPS and FedEx and affected millions of shoppers and online sellers. To avoid a repeat, courier services are employing temporary staff to handle the extra workload, have leased additional storage space, and are fostering better communication with retailers for improved visibility in the supply chain.

Here are some interesting facts and figures from the National Retail Federation on how online retailers are gearing up for the big annual opportunity. According to the survey, 9 out of 10 retailers plan on offering free standard shipping in one form or the other. To offer buyers a smooth shopping experience, online retailers have invested in live chat, product-availability checking tools and shipping deadline calendars.

Let's take a look at some of the things merchants are doing to ensure product availability and timely deliveries during this gifting season.

Online stores are trying hard to accurately determine the number of deliveries that will be required to be made through courier services. With insufficient data to go by and an ever-changing e-commerce environment, sellers are expected to inform logistics handlers about the possible workload during the short holiday-season shopping window.

UPS is hoping for a better holiday season than last year when millions of packages were left stranded on Christmas Eve.

Accurate forecasting and appropriate stocking ensures that stores are not left with inventory in the warehouse once the shopping fervor cools in the New Year. This calls for getting distribution centers in order before Black Friday on Nov. 28.

Inventory already present should be readied and stored appropriately. Changes in price or discounts should be fed into the ERP system. An increase in inventory in anticipation of high order fulfillment requires adequate provision of supplies such as cartons, tape, boxes and marketing materials. Trolleys and forklifts in distribution centers also need to be in working condition.

A transparent supply chain that offers real-time visibility allows businesses to direct and manipulate the shipping of goods from different distribution centers to ensure that availability and delivery deadlines are met. This calls for a networked supply chain in which all players — suppliers, warehouses, retailers and shippers — are in the know about the status of a particular consignment.

Logistics can also play an important role in marketing and getting customers to your store. Consider a reverse logistics plan that makes it easy for customers to exchange their old products for new ones with you. Incentives can be in the form of cash back, store loyalty points or credit card points.

Even with the most meticulous preparation and clear communication between manufacturers, sellers and logistics providers, there is always a chance that something might go wrong — and there is a lot that can go wrong when your supplier is located in Asia and the market is in the United States.

The solution is to weave flexibility into the supply chain so that it can respond quickly to changes. For example, if a local manufacturer folds operations, the supply chain should be able to acquire another one and get things moving once again.