In my experience working with shippers, especially large complex shippers, the parcel budgeting process is one of the most challenging tasks for transportation managers. As e-commerce and parcel growth rates soar, it has become increasingly important to master the challenge. The challenges are many, including designing an accurate budget, allocating to appropriate cost centers, managing monthly accruals, explaining budget variances, and re-forecasting.
It was recently reported at FedEx's Q3 earnings call that beginning June 1, FedEx will be reducing its additional handling package length threshold from 60 inches down to 48 inches on all ground shipments. According to FedEx's Mike Glenn, this change was made primarily as a way to leverage the costs and labor associated with the growing e-commerce volume. So what does this mean for you? Industry expert William Cordell explains.
The parcel industry continues to be as unpredictable as ever. Uncertainty is a consistent theme among parcel shippers and navigating through it is becoming increasingly challenging. I recently attended the Parcel Forum in Chicago this October and took the opportunity to ask many of the shippers and carriers present to share with me their concerns about uncertainty within the parcel climate as we approach peak season and a new year in 2016.
The idea of using data as a tool to drive business decisions began in the 1980s. Since then, advances in hardware and software technologies have dramatically improved our ability to work with data causing radical shifts in how we do business. According to recent studies, the amount of data that is collected daily doubles every two years.
Most large parcel shippers would agree that the parcel industry is evolving at a pace more rapidly than we have seen in recent history. After years of shippers designing and operating their parcel networks primarily based on FedEx and UPS's service capabilities, we are seeing a shift to alternative network strategies that permit the incorporation of other carriers' solutions. In an industry dominated primarily by two large carriers, opportunities are quickly arising that lower the barriers...
The parcel landscape is rapidly changing in an increasingly competitive market and if you’re not willing to adapt, survival will be short-lived. How we adapt to the change will separate the winners like, Apple and Amazon, from the pack. There are more carrier choices, more restrictive contracts and fewer “deals” being offered. The challenge of change presents opportunities to examine our progress and improve our efficiency. As a consultant to some of the largest parcel shippers, I’ve noticed three ways you can adapt and be prepared.
I am noticing Regional carriers are gaining more interest than ever in the parcel shipping community these days. They have been a presence for years in the industry, but recent parcel industry trends and developments are thrusting them onto an even larger stage. Retailers in particular have been a primary factor in providing greater stardom for the Regionals. As most in the parcel industry are aware, omni-channel retailing strategies are disrupting how retailing is conducted. As a result, the methods for fulfilling and delivering consumer orders are also being disrupted. A primary objective of the omni-channel strategy is optimizing inventory...
