XPO Logistics Puts Spinoff of Assets on Hold Due to Market Conditions

| Mike O'Brien

Just two months after announcing it was exploring strategic alternatives, including selling off one or more of its business units but keeping its LTL services intact, the company pulled this option off the table due to the effects of the coronavirus on markets. XPO had been looking at divestiture after a two-year, $8 billion acquisition spree.

UPS Names Former Home Depot CFO as New CEO

| Mike O'Brien

Carol Tomé, who has been CFO of Home Depot for 18 years and helped manage its strong growth, will be the new CEO of UPS. She succeeds David Abney, who will stay on as executive chairman until retiring from the board in September and acting as a transitional consultant through the end of 2020.

Spate of Four Acquisitions in Operations and Fulfillment

| Mike O'Brien

This was a busy M&A week among operations and fulfillment vendors. FOG Software Group acquired shipping software firm ProShip from Quadient; Hy Tek Material Handling acquired Johnson Stevens Consulting; Dematic acquired Digital Applications International Ltd; and Aptean acquired TMS firm Paragon Software Systems.

Your Input Matters: Take Our MCM Outlook Survey 2020

| Mike O'Brien

What major trends are driving rapid changes in ecommerce and DTC, and what do they mean for your business? Multichannel Merchant’s annual MCM Outlook survey helps uncover how our audience is reacting to today’s business challenges and market shifts. Complete the survey today and be entered to win a $100 Amex card!

7 Strategies to Get the Most from Your Subscription Box 3PL

| Nicole Lee

Order fulfillment can be overwhelming, particularly as your subscription box business grows and evolves. You’ve put considerable time and effort into building your business, and you want to find a fulfillment partner who can help meet your goals and give them the tools to succeed. These 7 strategies can help guide the process.

Amazon Cutting Out Delivery Contractors It Says Don’t Pass Muster

| Mike O'Brien

Amazon is severing delivery contracts in five states, affecting about 1,300 drivers, eliminating partners it says aren’t meeting delivery standards, according to Bloomberg and other reports. Two years ago, Amazon began a program to help entrepreneurs start up delivery businesses, creating less of a need for the existing contractors.

FedEx Diverting Some Express Packages into Ground Network

| Mike O'Brien

FedEx is diverting some Express deliveries into its less expensive Ground network to drive efficiency and build ecommerce package density after parting ways with Amazon in 2019, according an internal memo obtained by the WSJ. FedEx will redirect residential Express packages to Ground as they get close to their destination.

Calculating Your True Ecommerce Fulfillment Cost Per Order

| Brian Barry

Ecommerce fulfillment cost per order (CPO) is the sum of all the warehousing expenses involved in receiving, put away and storage of product, picking, packing and shipping and reverse logistics or returns processing from customers. But do you know your fully loaded CPO? This calculation process will help you generate a true number.

OnTrac Updates to Master Contractor Model in Wake of AB5 in California

| Mike O'Brien

The effects of California’s AB5 law are widespread, requiring thousands of gig workers and independent contractors to be reclassified as employees. This means delivery firms doing business in California are updating their operating models to adhere to the law. One such firm is OnTrac, going to a master contractor model.

UPS In Autonomous Vehicle Pilot with Waymo in Phoenix

| Mike O'Brien

UPS and self-driving technology company Waymo are running a pilot program for autonomous vehicle package pickup in the Phoenix area, using Waymo’s minivans to shuttle packages from UPS stores to a UPS sorting facility. Last year, UPS took a minority stake in TuSimple, an autonomous trucking company.