A Shortened Holiday Season – Can FedEx and UPS Deliver?

December 5, 2019


A shortened holiday season will see a mad dash from FedEx, UPS, USPS and yes, even Amazon trying to deliver a record number of packages. Judging from a record Thanksgiving weekend a Cyber Monday, the three companies have their work cut out for them.

According to Adobe Analytics, shoppers spent $4.2 billion online on Thanksgiving, a 14.5% increase from last year and a record high. In addition, shoppers spent $7.4 billion online on Black Friday. It was also the biggest day ever for mobile sales with $2.9 billion coming from smartphones.  Meanwhile, Cyber Monday continued the trend with an estimated $9.2 billion in sales.

Our CEO and founder, John Haber talked with Rose Scott, host of WABE radio show Closer Look about the holiday season and how prepared FedEx, UPS, USPS and Amazon are for the season. Check out the replay here. Yes, John expects the season to be a good one for the carriers.

For Amazon, the company said that Cyber Monday was its "single biggest shopping day” and also that it also sold "hundreds of millions" of products between Thanksgiving and Cyber Monday.

However, EcommerceBytes, a blog website on e-commerce news, is reporting that things may not be so rosy for Amazon. According to customers, Amazon is no longer showing 2-day delivery for Prime orders this week and it's even impacting third-party sellers who ship from their own facilities.

Speculations suggest that Cyber Monday was perhaps too successful and has led to a large number of orders that's clogging the delivery pipeline. There were also snowstorms across the country that may have caused a backlog.

As we get closer to Christmas Day, how Amazon performs will be scrutinized by all particularly as they roll out their next day delivery service option for Prime members.

Meanwhile FedEx and UPS will likely be taking full advantage of their retail partnerships – Dollar General, Walgreens among others for FedEx and Michaels and CVS for UPS – as both carriers look to reduce their residential delivery costs by encouraging pickup and drop off at alternative locations.

Seven-day delivery is once again being offered by the USPS this holiday season. FedEx, too, is quietly rolling out their own seven-day delivery service and will be available in various locations in the U.S. this holiday season with full roll out across the U.S. early next year. UPS will also introduce their own service next year.

Fedex and UPS are looking to take advantage of their investments in their networks and facilities to speed up deliveries this holiday season. Will they succeed? We think for the most part they will barring any significant weather impact.

Stay tuned for more updates as we progress through the season. Follow us on LinkedIn or Twitter for the latest news.


ABOUT SPEND MANAGEMENT EXPERTS

Spend Management Experts provides strategic guidance to optimize your supply chain. Using cost modeling technology and market intelligence, we help companies with their transportation, distribution and fulfillment spend. Often large shippers can reduce their spend across the supply chain by 20% or more. We specialize in reducing distribution costs, increasing efficiencies, dynamic reporting, greater budgeting and forecasting accuracy and optimizing supply chain execution. We leverage our proprietary models to identify savings and build negotiation strategies based on data and business cases. As industry experts, our fresh approach provides clients with straightforward details on exactly how savings are derived. Spend Management Experts is your competitive edge, delivered.

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A Shortened Holiday Season – Can FedEx and UPS Deliver?

December 5, 2019


A shortened holiday season will see a mad dash from FedEx, UPS, USPS and yes, even Amazon trying to deliver a record number of packages. Judging from a record Thanksgiving weekend a Cyber Monday, the three companies have their work cut out for them. According to Adobe Analytics, shoppers spent $4.2 billion online on Thanksgiving, a 14.5% increase from last year and a record high. In addition, shoppers spent $7.4 billion online on Black Friday. It was also the biggest day ever for mobile sales with $2.9 billion coming from smartphones.  Meanwhile, Cyber Monday continued the trend with an estimated $9.2 billion in sales. Our CEO and founder, John Haber talked with Rose Scott, host of WABE radio show Closer Look about the holiday season and how prepared FedEx, UPS, USPS and Amazon are for the season. Check out the replay here. Yes, John expects the season to be a good one for the carriers. For Amazon, the company said that Cyber Monday was its "single biggest shopping day” and also that it also sold "hundreds of millions" of products between Thanksgiving and Cyber Monday. However, EcommerceBytes, a blog website on e-commerce news, is reporting that things may not be so rosy for Amazon. According to customers, Amazon is no longer showing 2-day delivery for Prime orders this week and it's even impacting third-party sellers who ship from their own facilities. Speculations suggest that Cyber Monday was perhaps too successful and has led to a large number of orders that's clogging the delivery pipeline. There were also snowstorms across the country that may have caused a backlog. As we get closer to Christmas Day, how Amazon performs will be scrutinized by all particularly as they roll out their next day delivery service option for Prime members. Meanwhile FedEx and UPS will likely be taking full advantage of their retail partnerships – Dollar General, Walgreens among others for FedEx and Michaels and CVS for UPS – as both carriers look to reduce their residential delivery costs by encouraging pickup and drop off at alternative locations. Seven-day delivery is once again being offered by the USPS this holiday season. FedEx, too, is quietly rolling out their own seven-day delivery service and will be available in various locations in the U.S. this holiday season with full roll out across the U.S. early next year. UPS will also introduce their own service next year. Fedex and UPS are looking to take advantage of their investments in their networks and facilities to speed up deliveries this holiday season. Will they succeed? We think for the most part they will barring any significant weather impact. Stay tuned for more updates as we progress through the season. Follow us on LinkedIn or Twitter for the latest news.


ABOUT SPEND MANAGEMENT EXPERTS Spend Management Experts provides strategic guidance to optimize your supply chain. Using cost modeling technology and market intelligence, we help companies with their transportation, distribution and fulfillment spend. Often large shippers can reduce their spend across the supply chain by 20% or more. We specialize in reducing distribution costs, increasing efficiencies, dynamic reporting, greater budgeting and forecasting accuracy and optimizing supply chain execution. We leverage our proprietary models to identify savings and build negotiation strategies based on data and business cases. As industry experts, our fresh approach provides clients with straightforward details on exactly how savings are derived. Spend Management Experts is your competitive edge, delivered.

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