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.
A few parcel notes to highlight since last week:
- Pitney Bowes launcheda series of new tracking and returns capabilities and the expansion of its regional delivery services to the Midwest region:
📦According to Pitney Bowes, with the expansion of the regional delivery services to the Mid-West region, brands and retailers will now be able to reach 90% of the population across the United States within 1-3 days.
📦Its new Customer Service Returns application will give CSRs the ability to initiate, validate returns and generate a shipping label or QR code for use at any Pitney Bowes partner drop off location or network of 30,000 postal locations.
📦Its Gift Tracking service enables gift purchasers the ability to personalize the online gifting experience. Gift-givers can create an interactive tracking page with an uploaded video or picture message that is slowly revealed as the gift makes its way to the recipient. The virtual greeting card is fully revealed once the gift is delivered.
- Last year FedEx and Amazon discussed the possibility of FedEx accepting returns of Amazon packages at its retail locations, but nothing came of it but as noted by the WSJ, the developments came as FedEx has sought to boost parcel volumes and Amazon sought to improve the experience its customers have in returning items. Currently, Amazon customers can return items to Kohl stores, UPS Stores, Whole Food Stores and to various Amazon locker locations.
- A recent study by last-mile solutions provider OneRailfound retailers consider diversifying their delivery networks crucial. 73% of survey respondents said relying on their internal fleets makes it much more difficult to meet demand spikes. The report also highlights that 96% of survey respondents report that their customers consider delivery an essential part of their shopping experience, and that 20% of customer complaints retailers receive pertain to long delivery times and delays.
- Supply Chain Dive’s Max Garlandwrites that fulfillment and last-mile delivery provider Point Pickup Technologies ceased operations and is seeking a sale. Founded in 2015, Point Pickup offered same-day fulfillment and delivery services across the U.S. via flex workers, serving brands such as Walmart, Kroger, The Home Depot, GameStop and 7-Eleven. In July 2023, it announced a merger with Pickup Now.
- FedEx reports FYQ3 2024 earnings tomorrow (https://investors.fedex.com/news-and-events/upcoming-events/default.aspx). What can we expect? Likely not much. Perhaps a small bit of improvement in profitability and volumes compared to the same period as last year but nothing substantial in my opinion. Any profitability gain will probably be due to cuts and automation implementations versus an improving parcel market. Hopefully FedEx will surprise me. I’m interested to hear of any strategy updates and if they will meet their June deadline of merging Ground and Express.
For more:
📦FedEx sees third-quarter estimates cut as poor weather hit expected – Proactive
📦Gear Up for FedEx (FDX) Q3 Earnings: Wall Street Estimates for Key Metrics –Yahoo! Finance
What You Need To Know Ahead of FedEx’s Earnings Report Thursday –Investopedia
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 April 3, and don’t forget to hit the subscribe button to ensure you receive it in your LinkedIn notices.
-Jay