Smarter Shipping, Volume 11: Tough Times for Tomé as UPS Flounders in Q1, Teamster Strike, & FedEx's Bold Move
Welcome to Volume 11 of "Smarter Shipping" with Intelligent Audit.
If you missed last week's newsletter, "Smarter Shipping, Volume 10: All Eyes on FedEx as Subramaniam Turns Toward Consolidation."
Let's dive right in!
In this edition of "Smarter Shipping," we'll cover the following:
Customer Story: Anomaly Detection Catches Carrier Costing 50X the Agreed-Upon Rates
Learn how Intelligent Audit used machine learning to detect how one new carrier was 50 times more expensive than any of the five agreed-upon rates for the lane, so costs spiked significantly for one day on an infrequently used lane.
The Top Stories to Know around the Industry
Tough Times for Tomé as UPS Flounders in Q1
Spring is bringing showers for UPS, and, as the adage goes, when it rains, it pours. A bleak set of Q1 results has UPS looking for solutions and investors on edge, with some corporate insiders disagreeing with Citigroup’s recent “buy” rating for the parcel giant. And that’s not all: International Brotherhood of Teamsters President Sean O’Brien has some characteristically strong words for UPS as the union, representing 350,000 UPS workers, works for better benefits and pay. In an industry that’s always moving, here are the latest headlines making news.?
A Weak Q1 Points to Trouble for UPS
On Tuesday, April 25, UPS shared its Q1 FY2023 results with shareholders and the public. Perhaps unsurprisingly in a challenging parcel landscape, the results were not what shareholders might have been hoping for:
CEO Carol Tomé remained optimistic in the parcel giant’s?earnings report?despite these grim numbers: “We will remain focused on driving productivity while investing in efficiency and growth initiatives, enabling us to come out of this demand cycle even stronger.”
Citigroup Says ‘Buy’ on UPS; Others Have Their Doubts
Despite UPS’s difficulties in recent months, Christian Wetherbee of Citigroup reiterated his buy rating for the parcel carrier on April 24. Despite the buy rating from Citigroup, however, the corporate consensus seems to be negative toward UPS. According to?Market Insider: “Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter, there has been an increase of insiders selling their shares of UPS in relation to earlier this year.”
Despite Industry Hopes, Uncertainty Reins in the Freight Market
Despite the transportation industry's hopes for a pickup in freight this spring, industry experts are saying that there’s little chance of predicting when a stagnant market will rebound. Morgan Stanley analysts, in an April 4 research note cited by?Supply Chain Dive, wrote, “A month ago, we expected [management] teams to dismiss a soft 1Q print and sound great about 2Q and beyond [...] Now, we expect to hear 50 shades of ‘we have no idea’ on the conference calls.”
Insights from the Intelligent Audit Resource Hub
FedEx’s Bold Move: What Does Consolidation Mean for Parcel Shippers?
In a bold move to reshape the parcel shipping landscape, FedEx has unveiled an?ambitious plan?to consolidate its operating companies, save costs, and streamline its services. CEO Raj Subramaniam leads the charge with the vision of integrating FedEx Express, FedEx Ground, and FedEx Services under the Federal Express Corporation to create a leaner, more agile organization.
This game-changing strategy, aligned with FedEx's DRIVE program and Network 2.0 cost-cutting initiatives, targets?$6 billion?in savings by 2027. In addition, fundamental changes, such as an increased focus on rail transportation and reduced flight activity, promise to transform parcel ground shipping logistics for greater efficiency.
As FedEx undertakes this significant restructuring, the evolving market presents advantages and challenges for parcel shippers. While a more cost-effective and flexible service may emerge, drawbacks also come into play. This article will aim to uncover the facts of FedEx's consolidation, get to the bottom of the root causes, and explain how it could transform the worldwide parcel shipping landscape for better or for worse.?
Facing Omnichannel Obstacles, Shippers Turn to Logistics Network Optimization to Connect the Dots
As the digital revolution transforms the retail industry, omnichannel shipping has become crucial to providing customers with a seamless shopping experience. Customers now expect so much of the shopping experience, including online ordering, in-store pickup, and same-day delivery. However, implementing a successful omnichannel strategy is easier said than done. Shippers face many obstacles, such as managing inventory across various locations, optimizing shipping routes, and ensuring timely delivery across diverse channels.?
Fortunately, shippers can leverage Intelligent Audit's suite of logistics network optimization tools to streamline complex omnichannel supply chains and remove obstacles to provide successful omnichannel shipping. This article dives into shippers' challenges when implementing an omnichannel shipping strategy. It also explores how Intelligent Audit's platform can help shippers connect the dots in their supply chains, streamline their logistics processes, and meet customer demands with unprecedented ease.
6 Ways Parcel Visibility Can Bolster Your Bottom Line
Are you tired of feeling like you're constantly playing catch-up in the fast-paced world of parcel transportation? You're not alone. Businesses need a leg up in an environment that's constantly changing and seemingly impossible to keep up with. That's where parcel visibility solutions come in, offering real-time insights into operations that can make all the difference.
These solutions provide unprecedented performance analysis with the help of business intelligence and machine learning technology and allow you to make informed decisions that keep costs low and maximize revenue. It's a game-changer in the ultra-competitive world of parcel shipping.
Are you ready to get ahead of the competition once and for all? It's time to stop guessing and start knowing what's going on with your shipments. Parcel visibility solutions empower you to make the right decisions at the right time - no more worrying about falling behind.
From Cincinnati to California, Unions Make Headlines Across the Country
As the Teamsters duke it out with UPS, a new fight between the union and another major carrier — DHL — is taking shape in Cincinnati. But they’re not alone: the International Longshore and Warehouse Union made its presence known last week, according to the Pacific Maritime Association, with what the carrier group has deemed an illegal work stoppage. As workers and bosses vie for control of the narrative, we’ve rounded up the transportation industry stories making headlines in the industry that’s always moving.?
UPS' Earning Call by Adam Holcomb, Intelligent Audit Senior Business Analyst
Read the latest edition of Parcel Magazine to find industry insights by our Senior Business Analyst, Adam Holcomb, on page 14.
In his article, Adam shares a recap on UPS Earnings Call that took place on January 31.
Thank you Parcel Magazine for this opportunity!
See Intelligent Audit in Orlando for the Gartner Supply Chain Symposium
The time has finally come to head to Orlando for the Gartner Supply Chain Symposium!
Intelligent Audit's Hannah Testani , Jorie Ramsaur , David Wedekind , and Richard Perry look forward to seeing our current customers and meeting new friends. Intelligent Audit will be at Booth #106, so please come say hello!
Stay tuned for upcoming posts on the biggest takeaways from Garter!?
That's it for this edition of "Smarter Shipping" with Intelligent Audit! Make sure to subscribe to not miss a weekly edition!
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1 年Well said.