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.
In addition, on those weeks that Parcel Notes does not go out, we send a market update and analysis email to subscribers. ***If you would like to be added, please DM me on LinkedIn***.
Shifts in Market Share
- Freightwaves – Smaller carriers are increasingly taking market share from legacy carriers FedEx, UPS and the U.S. Postal Service, but their biggest threat is Amazon. The retailer’s logistics operation handled 6.3 billion parcels in 2024, up 7.3% year over year, and is expected to overtake the Postal Service by 2028, Pitney Bowes said in its recent Parcel Shipping Index.
UPS
- In a first in its history and as part of its overall cost-cutting measures, UPS plans to offer buyout packages to its delivery drivers. The Teamsters describe it as an “an illegal plan” so we’ll see how this plan goes…
Publication, Logistics Management, received a statement from UPS regarding the buyout packages:
“We are executing the largest network reconfiguration in UPS history,” said UPS. “For the first time ever, in recognition of these unique circumstances, we are looking to offer our full- time UPS drivers the opportunity to participate in a voluntary program that would provide an opportunity to receive a generous financial package if they choose to leave UPS. The financial package available through this program is in addition to any earned retirement benefits, including pension and health care, each driver would have the ability to decide if this voluntary program is beneficial to their family and the plans they have for the future. We have approached the Teamsters on this topic and remain committed to the agreements we reached in 2023 as part of our contract negotiations. As we work through our network reconfiguration, we remain steadfast in our commitment to providing customers with the reliable, industry leading service they expect from UPS.”
FedEx
- Supply Chain Dive– FedEx has closed 100 stations as of May 31 as part of the carrier’s plan to combine its separate Express and Ground networks.
- Des Moines Register– Lennox in Marshalltown Iowa will be laying off 62 workers from its Marshalltown factory effective Aug. 1 and FedEx will lay off 84 workers from its 700 W. 9th Street facility effective Sept. 1.
- Business North Carolina– FedEx will close its Greensboro facility, some of 164 workers will be offered other jobs.
- WFAA– FedEx will close facilities in Garland and Plano Texas, laying off 131 employees.
- Automotive Dive– FedEx created an automotive vertical within its organization as part of its efforts to expand its business-to-business customer base and revenue.
- Simple Flying– FedEx permanently retired 12 aircraft from its fleet and taken a $21 million impairment charge in its fiscal fourth quarter that ended on May 31.
Amazon
- Geekwire – Amazon has deployed its 1 millionth robot, a milestone that brings its robot workforce closer than ever to matching its human one.
- Bloomberg – Prime Day sales fell almost 14% in the first four hours of the event compared with the start of last year’s sale, according to Momentum Commerce, which manages 50 brands in a variety of product categories.
Jay’s Videos
For more information and analysis, be sure to check out our videos posted on our video page.
That’s it for now. Stay tuned for the next newsletter 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.
Most important though, reach out if you’d like to learn how to lower or even possibly eliminate any parcel fees. 📦
-Jay