More than 6% of 508,000 FedEx and UPS parcels shipped by 100 small-to-medium-sized retailers between January and March 2019 were delayed, nearly 72% of them by a full day, according to a report from LateShipment.com. The numbers were worse for 3PLs: 7.6% of their UPS and FedEx parcel shipments arrived late.
As consumer behavior shifts and omnichannel retailing grows, retailers are getting closer to customers to improve service and help ensure profitability. Increasingly, they look to four key areas where shifts can make fulfillment more efficient: Retail footprint; manufacturer direct shipping; 3D print & ship; and pickup sites.
Residents of a North Carolina town will be able to get meals delivered by drone as part of a limited test program sanctioned by the Federal Aviation Administration, as it takes baby steps toward broader approval of drone operations. Israeli drone service firm Flytrex is hoping the test program will expand to all kinds of deliveries, even to backyards.
If we’re looking to turn deliveries into a catalyst for environmental change, drones and autonomous vehicles will help, but we’re not quite there yet. In the meantime enterprises should focus on improving delivery efficiency, which means providing drivers with the most efficient routes and the maximum number of packages per run.
UPS will not add a residential delivery surcharge this holiday peak season, unlike the past two years, but will add surcharges for larger packages and those requiring additional handling. The company expects to exceed record volume of 800 million packages set last year, with 75% of it handled by automated sortation systems.
The use of automated lockers for ecommerce deliveries is moving beyond BOPIS applications, with adoption growing in apartment buildings, public transportation areas and even mobile tests. To that end, a shared locker pilot program by the University of Washington’s Urban Freight Lab and Seattle DOT will be expanding next year.
The U.S. Postal Service reported a drop in its parcel volume for the first time in nine years during its third quarter, as major customers like Amazon continue to shift business away from the USPS and take on some of the deliveries themselves. However parcel revenue was up thanks to rate increases and a DIM adjustment this year.
It’s coming down to the wire for our Ecommerce Operations Summit 2020 call for speakers, which closes next Friday, Aug. 16. Our 9th annual event will be held April 14-16, 2020 at the Marriott Orlando World Center in Orlando, FL – a nice change of venue, don’t you think? Get your submission in now and elevate the conversation!
Two months after deciding not to renew its contract with Amazon for air freight service, FedEx is now parting ways with the ecommerce giant on the ground as well. FedEx will not renew its ground contract with Amazon when it expires at the end of August, effectively severing the long-term relationship as Amazon grows its own capabilities.
Target is expanding its free curbside pickup program, Drive Up, ahead of the busy back-to-school season, making it available at 1,550 stores and adding coverage in the Northeast, the company reported in a blog post. Several markets are being added in Massachusetts, Maine, New Hampshire and Rhode Island, with expansion in others.