I’m Jay Kent, managing director of SLB Performance, a consulting firm that helps companies reduce supply chain costs, implement BI tools, and improve in-stocks and customer service. After 25 years of leading some of the most complex supply chains in the industry, I began advising companies in multiple industries and verticals. To mitigate costs and improve efficiencies, it’s important to understand the market. So twice a month, I’ll share parcel news and thoughts. Be sure to hit the subscribe button to receive the latest newsletter in your LinkedIn notifications.
Happy Wednesday! I’m playing a bit of catch-up today – getting this newsletter back on track with a twice-a-month posting.
So, in the past week, we’ve had a bit of parcel and last-mile news….congratulations to Shipium which announced partnerships with Better Trucks and also Green Mountain.
The partnership with Better Trucks will help both companies make next-day and two-day delivery a regular option while reducing the costs associated with faster shipping outcomes, according to the announcement. An interesting point from the announcement – “Most customers transition from single-threading a national carrier to utilizing 6 carriers, on average, in their first quarter of using Shipium.”
Diversification. 😉
The other partnership was announced today with Green Mountain Technology (GMT). “The key to leveraging Shipium’s modern software is not just migrating to a multi-carrier strategy, but having the right strategy in place, which includes intelligent network design, the right mix of carriers for a given business’s operations, and efficient contract management,” said Jason Murray, CEO of Shipium. “GMT is the best at giving operators a plan that maximizes efficiency and cost structures. We then help GMT customers execute that plan to perfection.”
Meanwhile, Pitt Ohio acquired a minority stake in final-mile provider Aria Logistics. Aria Logistics operates a national network specializing in home delivery of big and bulky items like appliances, furniture, and fitness equipment.
Descartes acquired the final-mile automation platform GroundCloud which provides cloud-based final-mile logistics solutions. Its platform automates operations and compliance by helping final-mile carriers manage assets and routing, fill orders, meet delivery windows, and provide safety training and monitoring of drivers. The network integrates video telematics, providing event detection with suggested coaching tips to drivers.
And lastly, USPS reported its FYQ1 earnings (Oct. 1, 2022 – Dec. 31, 2022). Overall, USPS’ operating revenue was $21.5 billion for the quarter, an increase of $206 million, or 1.0%, on a volume decline of 1.7 billion pieces, or 4.8%, compared to the same quarter last year. Shipping and Packages revenue increased $203 million, or 2.4%, on a volume decline of 70 million pieces, or 3.5%, compared to the same quarter last year. The volume decline reflects the continued decline of pandemic-related surge in e-commerce. However, Shipping and Packages volume remains higher than pre-pandemic levels.
“We are making demonstrable progress with our Delivering for America plan. We continue to focus on service reliability for the American public as we modernize our outmoded and aging postal network to move mail and packages in an integrated network and deliver to nearly 165 million delivery points six days a week while covering our costs,” said Postmaster General and CEO Louis DeJoy.
“Our initiatives in cost reduction and revenue growth are underway. However, in addition to facing the same inflation and other post-Covid economic realignment issues that every business is facing, we continue to operate in an administrative environment beyond our control that slows the pace of improvement,” DeJoy added.
The USPS also filed a procedural filing with the Postal Regulatory Commission (PRC) notifying the commission of the Postal Service’s intention to replace its existing First-Class Package Service category with USPS Ground Advantage. USPS Ground Advantage will feature two-to-five day service standards for packages up to 70 pounds.
That’s it for now. Comments are always welcomed. Let me know what I missed. Stay tuned for the next newsletter next week, and don’t forget to hit the subscribe button to ensure you receive it in your LinkedIn notices.
-Jay