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.
FedEx
- FedEx announced its FYQ4 earnings yesterday, benefiting from its cost-cutting DRIVE initiative. Ground delivered its highest adjusted income in company history for the quarter and full year. Average daily volumes increased 1.2%, led by Ground Commercial, up 2.7%, and Economy, up 5.0%. Home Delivery’s average daily volume declined 1.2%. Meanwhile, the yield growth rate was 1% year over year.
- FedEx also announced it was conducting an assessment of FedEx Freight’s role in the company’s value-creation plans. Is FedEx following UPS in unloading ‘non-core’ services?
- FedEx also stressed the importance of e-commerce – “We think e-commerce is going to outpace the B2B growth,” FedEx’s Brie Carere said. “We like the fundamentals from an e-commerce perspective that will help us here in the United States and around the world.”
In other news:
- UPS entered into an agreement to sell its Coyote Logistics business unitto RXO, Inc., for $1.025 billion. “As UPS positions itself to become the premium small package provider and logistics partner in the world, the decision to sell our Coyote Logistics business allows an even greater focus on our core business,” said UPS Chief Executive Officer Carol B. Tomé.
- Target opened its fourth full-service “flow” center,helping it replenish stores and ship products to customers faster. Located in Hampton, Georgia, Target now has seven supply chain facilities in Georgia.
- Target Corp. is partnering with e-commerce specialist Shopify Inc. to expand its marketplace for third-party merchants.
- J.C. Penney invested $40 million to upgrade its distribution centerin Reno, Nevada, in an effort to improve fulfillment and delivery efficiency.
- Through a partnership with Narvar and Inmar Post-Purchase Solutions, Kohl’s is accepting returns from brandslike Carhartt, Hanes and Levi’s at its stores.
- Walmart CFO John David Rainey said that the company has seen delivery orders surpass pickup orders for the first time in the past few months. “I believe that that’s a trend that’s not going to reverse,” Rainey said.
If you missed it, be sure to check the latest video I did with Cathy Morrow Roberson:
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 July 9. Don’t forget to hit the subscribe button to ensure you receive it in your LinkedIn notices. In addition, if you like what you’re reading, sign up to receive additional insights and analysis via emails twice a month – DM me for more info.
-Jay