No one questions the fact that ecommerce packaging waste is a major problem, clogging the planet with yet more plastic and cardboard. The twofold question then becomes, what is being done about it, and what more can be done? This Multichannel Merchant special feature discusses the scope of the issue, and steps that are being taken by retailers, suppliers and governments to reduce the amount of waste.
FedEx provided details on its plan to consolidate its Ground, Express and Service units by 2024, announced last year, with its less-than-truckload Freight unit remaining separate, projecting cost savings of $4 billion by 2025 and an additional $2 billion in network efficiencies by 2027. The consolidation, undoing the legacy of founder and executive chairman Fred Smith, will cost an estimated $2 billion, FedEx said.
FedEx saw the biggest U.S. parcel volume falloff in 2022, Pitney Bowes reported, and while overall volume last year was down by 2.2%, the pandemic bump in ecommerce helped it outpace the 2019 projection, hitting the target a year early. The CAGR for parcel volume growth from 2023-2028 is projected to be halved, from 10.8% to 5%.
The pain from pullbacks in retail and ecommerce spending is being felt across the board in logistics, delivery and shipping operations, both internal and external, with layoffs announced at a number of companies resizing in line with lowered demand. From Walmart to 3PLs, trucking, supply chain and robotics, reports continue to pour in.
By virtue of operating an enterprise with less cash flow, SMBs grapple with unique obstacles. Supply chain visibility is relatively low, making it challenging to connect with new suppliers, and larger competitors have more resources at their disposal. Here’s how AI and ML-based tools and technology can help you level the playing field.
FedEx on Thursday released its third-quarter earnings report, upping its full-year earnings forecast as cost-cutting measures like major layoffs and air freight cutbacks take hold, even as shipping volumes globally remain challenged, boosting its stock more than 9% in after-hours trading.
Amware Fulfillment, a 3PL focused on direct-to-customer commerce, has been acquired by French logistics provider Staci Group in a marriage that provides customers of both firms with entrance into markets in Europe and the U.S., respectively. The companies will also cross-pollinate their respective technology strengths.
Amazon is aggressively expanding same-day delivery capabilities after a major pullback in planned fulfillment facilities which overshot demand when the pandemic boom receded. Feeling the competitive heat, Amazon is redirecting its investments toward smaller hubs closer to customers, making fast delivery a higher priority in 2023.
As you work to build more resilient supplier networks, start by investing in a comprehensive digital transformation. Once seen as a competitive advantage, digitalization has become an indispensable necessity as supply chains have grown more complex and outsourced, with brands and retailers increasingly relying on vast overseas networks.
Walmart reported ecommerce growth of 17% in Q4 to $80 billion, representing 13% of total sales, and beat expectations overall, but warned of a challenging climate for the rest of the year based on consumer sentiment and macro signals, sending uneasiness through the industry and the markets.