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-stock 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. It’s important to understand the market to mitigate costs and improve efficiencies. 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.
Investments in Fulfillment Centers
- Staples is partnering with RightHand Roboticsto incorporate AI-powered robots in Staples’ fulfillment centers nationwide, helping to improve next-day delivery to over 98% of the country and assist with labor shortages.
- Urban Outfitters began operations at its new 600,000-square-foot fulfillment centerfor Nuuly, the company’s women’s clothing rental brand, in Raymore, Missouri. The retailer is investing $60 million in two phases over five years to build its second Nuuly fulfillment and laundry facility, which will provide capacity to triple its active subscriber base.
USPS
USPS Postmaster General Louis DeJoy told congressional leaders last month that USPS is looking to cut $5 billion from its operating costs and grow its revenue by the same amount over the next two years to overcome its long-term financial challenges. “Our competitors are reacting to us out there, and we will get better faster,” DeJoy told Federal News Network in a recent interview. “I’m very confident in that — that we’ll get better faster. My issue right now is to get it done fast enough before we run out of cash.”
FedEx and UPS
- Walmart negotiated additional FedEx rate discountsfor third-party sellers using Ship with Walmart. In November UPS became a supported carrier for Ship with Walmart.
- An interesting report from UPS Capitalnotes that shipping volumes driven by e-commerce have risen by 30% over the past two years. The top three challenges surveyed merchants anticipate as e-commerce volumes rise:
- Fulfillment speed challenges
- Managing spikes in demand during peak periods
- Enabling more real-time shipment tracking and transparency
- UPS recently announced it is rolling out its UPS Standard Service Saturday residential ground delivery for customers in major Canadian cities. UPS noted that with this move, it is the first global small package carrier in Canada to provide committed Saturday ground residential delivery of shipments from the United States and within Canada at no additional charge.
- UPS layoffs continue– UPS plans layoffs at New Stanton facility –
That’s it for now. Comments are always welcome. Reach out if you’d like to learn how to lower or even possibly eliminate any parcel fees. Stay tuned for the next newsletter on March 6, and don’t forget to hit the subscribe button to ensure you receive it in your LinkedIn notices.
-Jay