Mike O'Brien
Mike O’Brien has worked in journalism, marketing and public relations for … well, quite a while. At Multichannel Merchant he focuses on the world of direct-to-customer operations and fulfillment, editing MCM’s weekly O+F Advisor newsletter, and programs the annual Ecommerce Operations Summit conference. Previously Mike was a senior account executive for Marx Communications, a boutique public relations firm working with marketing and advertising technology companies. Other past work includes stints as a media relations consultant for a concert promoter, a marketing communications specialist for a pharma software firm, a research analyst covering corporate e-learning and a daily newspaper reporter on every beat imaginable – except sports.
FedEx reported a 10% drop in Q4 revenue as demand remains challenged and cost-cutting initiatives continue in an effort to boost the balance sheet, including idling more planes, while announcing it is folding Ground operations into Express in Canada, the first step in a much broader consolidation outlined in April. It’s a radical departure from the operating model of retired founder Fred Smith.
Preparing for peak season volumes in DTC fulfillment requires not only cooperation among partners but scheduling stress tests, ensuring sufficient server capacity and nailing down carrier commitments well in advance, attendees were told during a panel discussion at Home Delivery World in Philadelphia.
More than 80 delivery drivers and dispatchers for an Amazon contractor who just joined the International Brotherhood of Teamsters in April have initiated the first strike against Amazon at a hub in Palmdale, CA, saying the company needs to address wages and working conditions. Amazon begs to differ, saying it terminated the contract with the DSP, and that the Teamsters are making up facts.
A Department of Transportation program that aggregates forward-looking supply chain data from various stakeholders to help identify volume and capacity issues, including shippers, carriers, chassis and drayage and port operators, will begin providing insights to participants this summer. The FLOW program uses booking information 60-90 days out, helping improve planning and forecasting.
A tentative contract agreement has been reached between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), easing concerns about a strike at 29 West Coast ports disrupting incoming freight from the Asia-Pacific region ahead of the fall and Q4. The deal ended 13 months of negotiations, but still requires ratification by both parties.
Online prices continue to fall as inflationary pressure has eased and retailers discount to clear out stocks ahead of Q4 ordering. Prices were down 2.3% year-over-year in May, the largest drop since the onset of the pandemic, and down 1.2% from April 2023, according to Adobe Analytics. It was good news for consumers but bad news for retail ledgers. Big-ticket categories remain challenged.
The problem of coupon code leaks from influencers and creators to discount sites like Honey and RetailMeNot, leading to misattribution of affiliate commissions, is being addressed by a startup that uses one-time links much like those in password recovery to ensure proper credit. Social Snowball started with a platform that automates the management of influencer and creator partners on Shopify.
Volcanic Retail is bringing a Tinder-style matchmaking capability to facilitate connections between brands and retail buyers, allowing them to connect through its marketplace to quickly determine compatibility and set up deals. The platform, launched in 2022, already has more than 2,000 retail buyers and 7,000 brands, the former including Tractor Supply, Whole Foods, Walmart, TJX and Nordstrom.
After a strike authorization vote, the International Brotherhood of Teamsters said it reached agreement on a couple key points with UPS, including increasing the number of grievance arbitrators and the amount due in penalties for errors in pay, according to a report in Scripps News. Meanwhile, a separate 8-1 U.S. Supreme Court ruling against the Teamsters was seen as weakening the right to strike.
Trader Joe’s, the distinctive small-scale-yet-nationwide grocery chain that feels more like a Starbuck’s without the pricey coffee and wifi, has thus far resisted the market pressure to follow the rest of its industry brethren into ecommerce, and explained its rationale in a podcast episode. Hint: it has to do with fulfillment and supply chain costs hitting prices, and maintaining the experience.