When it comes to the grocery wars, Walmart execs are concerned about the company’s tenuous number one position as well as losing share to fierce competitors, according to brutal self-assessments in a leaked memo and presentation from February obtained by Recode. There are also worries that Instacart is pulling even on e-grocery.
Amazon has increased its capital expenditures by 80% in the past year, including continuing expansion of Amazon Logistics such as new cargo planes, trailers and linehaul trucks and adding to its massive Delivery Service Partner (DSP) program. All told, Amazon has increased its logistics capacity by 50% in the past year alone.
Walmart and Target both announced plans Thursday to improve last-mile fulfillment and delivery from their stores, taking alternate routes via an investment in self-driving car project Cruise, and a new sortation facility powered by acquired technologies from Grand Junction and Deliv, respectively.
This report from Multichannel Merchant focuses on last-mile challenges faced by retailers, and how they’re focusing on technology and strategic adjustments to deliver speed, visibility, and accuracy. To achieve this, many are turning to multi-carrier shipping software that can be integrated with their existing technology stack.
First it was AI-equipped onboard cameras watching Amazon’s contract drivers along their routes. Now an app called Mentor monitors driver performance, which can interpret legitimate activities as risky ones, resulting in lower scores and sometimes termination. The company has reportedly been using Mentor for years.
FedEx has added on yet another surcharge, this time a 30 cent per package peak residential delivery charge for shippers who hand off an average of 30,000 packages weekly between Jan. 4-31 between FedEx Express, Ground and SmartPost, effective Feb. 15 and again until further notice. They apply to Ground and Express shipments.
The U.S. Post Office suffered most in terms of on-time performance and complaints this peak holiday season, experts agreed, with FedEx also having issues but not to the same extent and UPS doing better. Carriers of all stripes were buried by a cataclysmic holiday package deluge from Thanksgiving to Christmas.
UPS has extended shipping surcharges into 2021, with some similarities and some differences FedEx. Most notable was a steeper price drop for the surcharge on UPS’s SurePost last-mile service, used by many smaller ecommerce shippers, as FedEx may be covering the cost of shifting volume from the USPS into its own ground network.
This peak holiday season will be unlike any before, and brands must adapt accordingly. These unusual circumstances need to be met with creative solutions. Here are a few ways to avoid this scenario by looking at alternative last-mile delivery options that will keep both consumers and brands happy.
This holiday season retailers will not only have to contend with decreased carrier capacity due to the pandemic but also the anticipated influx of mail-in election ballots – all of which could result in a “super peak” holiday nightmare for retailers. Now is the time to implement strategies to ensure they can keep up with demand.