U.S. Postal Service
UPS, facing massive volumes akin to the holiday season due to COVID-19’s impact on ecommerce, is imposing surcharges on larger-volume shippers and those sending bulkier items as of May 31 to offset its costs, impacting companies already reeling from the crisis. Experts agree they expect to see FedEx follow suit shortly.
The USPS is asking Congress for $75B to avoid a liquidity crisis this fall, including $25 billion each for a cash infusion, for upgrades and modernization and for unrestricted borrowing authority, according to Government Executive. The USPS had already been in a bad position before the crisis, with even parcel growth falling off.
The Office of Inspector General at the USPS found the USPS isn’t threatened by the rise of same-day delivery, determining it is a niche, costly model appealing mostly to urban millennials and only represented 2% of all parcel deliveries in 2018. The IG report also recommended the USPS continue to focus on next-day delivery services.
An agile ecommerce supply chain is focused on speed, cost savings, productivity and responsiveness and flexibility to market demands. Supply chain management (SCM) exists to improve a company’s long-term performance. Here are 10 steps to help you improve your ecommerce supply chain agility and performance.
In an effort to attract more business from SMB ecommerce shippers, UPS and FedEx continue to expand their competitive offerings in flat-rate shipping, offering more options, customization and economy. Such programs aren’t as economically attractive to large enterprise shippers with their volume-based discounts.
The USPS saw a slight increase in package volume for fiscal 2019, after its first quarterly decline in years during Q3, as the agency is being challenged by Amazon and FedEx rerouting packages to their own networks. Total mail and package volume declined by 3.8 billion pieces or 2.6%, and the net loss more than doubled to $8.8 billion.
The U.S. Postal Service is projecting it will handle 800 million packages between Thanksgiving and New Year’s Day, a drop from both 2018 and 2017. Sunday delivery will be expanded beginning Nov. 24 to high-volume urban locations, with projections of over 8 million package deliveries on Sundays in December.
For many years, UPS and FedEx were in virtual lockstep on pricing and service offerings. That is until the past couple years, when they’ve begun to diverge as they seek to differentiate and carve out different market strategies. Mark Taylor of enVista discusses these changes as part of an MCM CommerceChat podcast.
With shipping and delivery such a critical piece of the customer experience in ecommerce, you need to choose the right carrier partner – or partners – that meet your business needs and fit your budget. Hear from shippers about how they determine the best fit and mix of service level and cost, and how they work with their carrier partners.