Smarter Shipping, Volume 6: Party of Three? Dynamic Conditions Create Competition Between Amazon, UPS, and FedEx
Welcome to Volume 6 of "Smarter Shipping" with Intelligent Audit.
If you missed last week's newsletter, "Smarter Shipping, Volume 5: Big Players, Big Moves: Leading Companies Take Risks to Optimize Operations," read in full here.
Let's get right into it!
In this edition of "Smarter Shipping," we'll cover the following:
CVS Saved on Transportation Spend & Optimized Their Network with Freight Audit Tech & Analytics
CVS needed an industry-leading and experienced auditor with a technological backbone that was versatile enough to meet the company's changing needs moving forward.
Party of Three? Dynamic Conditions Create Competition Between Amazon, UPS, and FedEx
Two’s company, but is three a party? As FedEx attempts to woo customers away from UPS amidst fears of a summertime strike, Player 3 has entered the game: Amazon and its ambitions toward total supply chain independence. How might FedEx respond as UPS attempts to contend with the e-commerce giant’s growing delivery network? For curious shippers, we’ve compiled the 11 stories shaping the transportation industry this week.
UPS Announces Plans to Further Reduce Business with Amazon in 2023
UPS has announced intentions to further reduce business with Amazon, the parcel carrier’s largest customer, in 2023. Amazon, which has long pursued independence from UPS and other logistics partners, has made significant strides toward supply chain independence in recent years as it works to gain control over the last mile.?
Despite the shift in strategy, UPS CFO made clear in a Jan. 31 earnings call that relations between the two companies remain positive: “We’ll continue on a mutually agreed path to glide that business down in 2023,” said Newman, according to reporting from Supply Chain Dive.?
FedEx Warns Customers of Strike Risk at UPS
In an attempt to woo customers from their primary competitor, FedEx advises them to shift volumes away from UPS to avoid the fallout from a potential strike. According to Supply Chain Dive, “Customer volumes onboarded by March 31 will be included in the carrier’s capacity planning ahead of the potential strike date, according to an email sent to FedEx customers.”
The strike date referred to is July 31, when UPS’ contract with the Teamsters is set to expire. The teamsters, led by union President Sean O’Brien, have made their willingness to strike clear. “FedEx told shippers that if a strike occurs, no single carrier has the capacity to absorb all of UPS’ package volume,” reports?Supply Chain Dive.?
As Volumes Fall, Amazon Reevaluates Operations
As Amazon continues to pare down operations to meet the post-Pandemic volume decline, the online retailer is closing, canceling, and delaying facilities. According to reporting from?Supply Chain Dive, in conversation with Marc Wulfraat of supply chain consultancy MWPVL, “Amazon has canceled, closed or delayed 99 facilities, impacting nearly 32.3 million square feet of active or planned ground-level space in 30 states.”
Amazon, however, disputed Wulfraat’s claims, with Amazon spokesperson Steve Kelly arguing that Wulfraat “says we’re selling or abandoning land or buildings that we’re keeping, or buildings that we never had in our possession to begin with,” according to?Supply Chain Dive.?
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Great Content from The Intelligent Audit Resource Hub
The Crystal Ball: Three Trends Shaping Tomorrow’s Parcel Shipping Industry
Worldwide parcel volume is expected to have a cumulative annual growth rate (CAGR) of 8.5% from 2022 to 2027, reaching?256 billion?parcels by the end of that span. As global parcel volumes continue to grow like this, shippers face increasing pressure to adapt to the demands of a fast-growing industry quickly.
It’s helpful for parcel shippers to try to look ahead and forecast what to expect next in shipping. That’s why this article provides the crystal ball showing three trends shaping tomorrow’s parcel shipping industry and how to gain the upper hand in a dynamic industry.
A Freight & Shipping Audit Checklist Guide
With increased e-commerce shipping, high consumer expectations for delivery, and challenges in the supply chain, companies need?optimized transportation systems?and freight services. One of the fundamental ways to achieve this is through collecting and analyzing data — which can, in part, be done through a regular freight audit. Quality, relevant?shipping data?shows what is going right and needs improvement for better shipping services.
Consistently carrying out freight audits allows one to collect data from shipping invoices. Over time, freight audits have become more comprehensive and focus more on analysis, making it easier to?use the data?to improve processes and business decisions. Freight audits can improve visibility into the supply chain, the accuracy of payments, and more.
This guide gives you an actionable freight audit checklist to follow.
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That's it for this week's "Smarter Shipping" edition with Intelligent Audit. Make sure to subscribe to not miss our weekly updates!
Customer service affects sales revenue, business opportunities, and growth
1 年Intelligent Audit, always fun to read your informative articles. UPS and FedEx have for many years competed with each other, but now we have the smaller regional small parcel delivery carriers who can do the same within a geographical area for less than UPS and FedEx.
Experienced leader with broad global supply chain execution experience.
1 年Good insights - as usual!