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.

USPS

  • The U.S. Postal Service is ending rate discounts for key shipping partners dropping off packages at the agency’s delivery units. The change means new contracts, or NSAs, won’t include discounts for volume brought to the Postal Service’s delivery units, the last stop in its network before the end address.

Press release: https://about.usps.com/newsroom/national-releases/2024/0911-usps-enters-into-new-agreements-with-package-consolidator-companies.htm

“It’s challenging for us to justify entering into NSAs that incentivize bypassing our transportation and processing network, while leaving us responsible for managing the final mile, which is often the most resource-intensive part of the delivery process. To continue this practice is not consistent with our business strategy to create an efficient network and grow our own end-to-end ground package product (USPS Ground Advantage) for shipping customers. Reevaluating these business arrangements is the right thing to do for the Postal Service and the American people. And of course, we will make agreements with consolidators who are willing to negotiate deals based upon a more rational use of our network in a fashion that is mutually beneficial. On that front, we have already concluded a number of new contracts with consolidators that are consistent with our current business strategy, that have been approved by our regulator, and that are operating effectively,” said Postmaster General, Louis DeJoy

UPS

FedEx

For an analysis of FedEx’s 2025 rate increases, check out what Shipware has to say. Have you also done an analysis? If so, drop a link to it in the comments.

FedEx announces Q1 earnings on Thursday, Sept 18. What to expect? Check out some of the various predictions:

  • Tip Ranks– FedEx Q1 Pre-Earnings: Here’s What to Expect
  • Investor Business Daily– FedEx In Turnaround Mode
  • Investing.com– FedEx Earnings: Ultimately, FedEx is a Margin and Free-Cash-Flow Story
  • MSN– FedEx Q1 Pre-Earnings: Here’s What to Expect

Rural Deliveries

Our latest monthly video chat is focused on the costs to deliver rural packages.

Retail Subscription Services – Are They Worth It?

Big thanks to the Parcel Magazine folks for inviting me to write a column on retail subscription services. Check it out here (pg 20): https://issuu.com/rbpublishing/docs/parcel_sep_oct_758b4c4a30943a/20?fr=xKAE9_zU1NQ

With that, 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 Sept 4. 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