Businesses utilizing drop shipping strategies see more shipping issues when compared to SMBs doing their own fulfillment.210 million packages were stolen off porches in 2021, equal to almost 1 package per household in the US.More than half of SMBs are using same-day carriers and are in-turn seeing higher incidences of damaged parcels. The two discuss the role shipping protection plays into creating strong, long-term relationships with customers.Ĩ6% SMBs are using drop shipping. In this episode, Glen Gooding, President of iDrive Logistics, sits down with Eduardo Lopez-Soriano, Vice President of Marketing at UPS Capital. Unfortunately, in the logistics industry, it's a reality that some packages will not reach customers issue-free. Data is beginning to indicate that this trend is here to stay. The USPS continues to deliver six days a week, with Sundaydeliveries in select markets and select products."It’s no secret that the pandemic brought with it a boom in e-commerce. 3.00 2021 5.00 2022 1.00 2023 Questions and answers People have asked 8 questions about working at iDrive Fulfillment. UPS has not mirrored FedEx in expanding to Sunday, with UPSspokesman Glenn Zaccara stating the company is “constantly assessing when itmakes sense to expand current capabilities and operations.” 15 Salaries 8 Q&A Interviews Photos iDrive Fulfillment Careers and Employment About the company Industry Transportation Management Learn more Rating overview Rating is calculated based on 3 reviews and is evolving. Rapidlydeclining First Class volumes have been stemmed somewhat by parcel volumes,which will be negatively impacted by the SmartPost transition. While this move seems advantageous for FedEx, the situationis not so rosy at the USPS. While the postalservice has been a politically inconspicuous subject historically, pressure toimprove yields has been evident and could pose financial risk to FedEx withcontinued dependence on USPS Parcel Select products currently utilized by SmartPost. This improvement will provide substantial benefit to eCommerceshippers, who are responsible for a great share of SmartPost volumes and whosecustomers are accustomed to day-definite deliveries prior to purchase orshortly thereafter.Īdditionally, this move provides insulation from future USPSpricing changes. The carrier gains fargreater ability to manage delivery density, especially with the lack of serviceguarantees on SmartPost shipments.Ĭutting ties with the postal service also smooths theSmartPost service offering, with the carrier skipping the service guarantee butgaining improved projection of delivery date due to controlling the packagethrough delivery. One particularly synergistic aspect is added capacity withimproved flexibility. While this inflection point is critical to the carrier’s decision, there are several other advantageous factors in a move to seven-day delivery. The result of this is improved residential delivery density, and reduced value in utilization of USPS for final mile.įedEx has decided SmartPost and Home Delivery segments have met an inflection point in volume to combine the services, with the carrier projecting parcel market volume to double by 2026 to 100 million daily shipments.
The eCommerce market is no longer small and burgeoning – now, it represents a massive consumer channel whose growth prospects have only increased.
In the parcel landscape of the time, compensating USPS for final delivery was seen as an innovative method to drive profitability in low-margin ecommerce shipments. In 2004, FedEx acquired Parcel Direct and merged the consolidator’s business to form FedEx SmartPost. Residential ecommerce has been a constant challenge forparcel carriers, as historically both deliveries per mile and deliveries perstop have been unattractive when compared to commercial deliveries.
There have been a multitude of changes in service days amongthe parcel carriers, with USPS now delivering seven days a week for selectPriority Mail and Amazon packages, and UPS expanding to six days a week. The added delivery day enhances capacity within the FedExnetwork, easing expansion costs as the burgeoning ecommerce market promises tocontinue to drive volume growth. The carrier is balancing several aspects in its decision,including a trend towards regionalized distribution centers among mid-size andlarger consumer businesses. FedEx announced expansion of delivery to seven days a week,citing ecommerce growth, synergies associated with increased capacity in thecarrier’s Ground network, and a desire to bring more SmartPost deliveriesin-house.Īccording to the Wall Street Journal, about 20% of SmartPostpackages are delivered by FedEx, with a majority expected to be integrated intothe Ground network by 2020.
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