Wanted: Last-Mile Delivery Employees

July 8, 2021


The continued growth in e-commerce is driving the demand for more workers as last-mile carriers struggle to keep up with parcel volumes.

US e-commerce sales were up 39% year-over-year for the first quarter this year, according to the US Census Bureau. Total e-commerce sales in 2020 increased 32.4% from 2019. This trend is expected to continue this year. For example, last month’s Prime Day brought Amazon an estimated $11 billion, up 6.1% from last year’s event, according to Adobe Analytics’ Digital Economy Index.

However, the help wanted sign is out at most last-mile carriers, including Amazon, FedEx, and UPS. Do a Google search on hiring, and one will find a number of local articles across the US announcing that Amazon, FedEx, or UPS are hiring anywhere from 100 to over 1,000 employees in various locations.

“The labor environment remains challenged right now, and we are doing everything we can possibly do whether it is from wages from technology from routing and all things associated with it to make sure that we can get our service improved,” FedEx president and chief operating officer, Rajesh Subramaniam said on the company’s fiscal year-end earnings call on June 24. “We expect that over the next two, three months, that situation gets better.”

Indeed, FedEx and UPS are squeezing assets by optimizing operations to reduce overall costs and improve costs/efficiency per employee. For example, in its investor and analyst virtual conference last month, UPS highlighted its routing technology capabilities, Dynamic ORION (On-Road Integrated Optimization and Navigation), introduced in 2020. This version reoptimizes routes in real-time and based on changing conditions. Full deployment is expected by the end of this month, but already, UPS has achieved a reduction of an additional 2-4 miles per driver per day in addition to the reduction of 8 miles per driver per day from the original ORION deployment.

Still, the hunt is on for workers as FedEx and UPS ramp up ahead of the holiday peak season. They are certainly not alone in their search for new employees.

The number of total available positions across all US industries in May climbed to 9.21 million versus 9.19 million in April, according to the US Labor Department’s Job Openings and Labor Turnover Survey. In contrast, 3.6 million people voluntarily left their jobs in May.

According to the US Bureau of Labor Statistics, couriers and messenger employment is up 15.2% year-to-date through June. Compared to 2019, it is up 29.4% and up 45.3% from the same period in 2018. However, despite FedEx and UPS technology enhancements, as long as parcel volumes increase, there will be a need for more employees, or else sporadic delays across the US will continue.

 


ABOUT SPEND MANAGEMENT EXPERTS

Spend Management Experts has united with Transportation Insight to become North America’s #1 provider of small parcel management and optimization services.  Our team of best-in-class analysts employs cost modeling techniques to help clients optimize their supply chain spend, reducing costs by 20% or more.  Our approach is non-invasive to daily supply chain operations as we employ unparalleled market intelligence and proprietary cost modeling technology, targeting hidden costs and identifying savings opportunities. After establishing the success criteria, SME leverages proven project plans, data warehousing, and milestone documents to ensure an optimized and implementable solution. We build strong business cases based on your data to negotiate better terms, pricing, and service for our clients. We deliver your competitive edge.

Connect with Spend Management Experts on TwitterLinkedIn, and the Spend Management Experts blog.

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Wanted: Last-Mile Delivery Employees

July 8, 2021


The continued growth in e-commerce is driving the demand for more workers as last-mile carriers struggle to keep up with parcel volumes. US e-commerce sales were up 39% year-over-year for the first quarter this year, according to the US Census Bureau. Total e-commerce sales in 2020 increased 32.4% from 2019. This trend is expected to continue this year. For example, last month’s Prime Day brought Amazon an estimated $11 billion, up 6.1% from last year’s event, according to Adobe Analytics’ Digital Economy Index. However, the help wanted sign is out at most last-mile carriers, including Amazon, FedEx, and UPS. Do a Google search on hiring, and one will find a number of local articles across the US announcing that Amazon, FedEx, or UPS are hiring anywhere from 100 to over 1,000 employees in various locations. “The labor environment remains challenged right now, and we are doing everything we can possibly do whether it is from wages from technology from routing and all things associated with it to make sure that we can get our service improved,” FedEx president and chief operating officer, Rajesh Subramaniam said on the company’s fiscal year-end earnings call on June 24. “We expect that over the next two, three months, that situation gets better.” Indeed, FedEx and UPS are squeezing assets by optimizing operations to reduce overall costs and improve costs/efficiency per employee. For example, in its investor and analyst virtual conference last month, UPS highlighted its routing technology capabilities, Dynamic ORION (On-Road Integrated Optimization and Navigation), introduced in 2020. This version reoptimizes routes in real-time and based on changing conditions. Full deployment is expected by the end of this month, but already, UPS has achieved a reduction of an additional 2-4 miles per driver per day in addition to the reduction of 8 miles per driver per day from the original ORION deployment. Still, the hunt is on for workers as FedEx and UPS ramp up ahead of the holiday peak season. They are certainly not alone in their search for new employees. The number of total available positions across all US industries in May climbed to 9.21 million versus 9.19 million in April, according to the US Labor Department’s Job Openings and Labor Turnover Survey. In contrast, 3.6 million people voluntarily left their jobs in May. According to the US Bureau of Labor Statistics, couriers and messenger employment is up 15.2% year-to-date through June. Compared to 2019, it is up 29.4% and up 45.3% from the same period in 2018. However, despite FedEx and UPS technology enhancements, as long as parcel volumes increase, there will be a need for more employees, or else sporadic delays across the US will continue.  


ABOUT SPEND MANAGEMENT EXPERTS

Spend Management Experts has united with Transportation Insight to become North America’s #1 provider of small parcel management and optimization services.  Our team of best-in-class analysts employs cost modeling techniques to help clients optimize their supply chain spend, reducing costs by 20% or more.  Our approach is non-invasive to daily supply chain operations as we employ unparalleled market intelligence and proprietary cost modeling technology, targeting hidden costs and identifying savings opportunities. After establishing the success criteria, SME leverages proven project plans, data warehousing, and milestone documents to ensure an optimized and implementable solution. We build strong business cases based on your data to negotiate better terms, pricing, and service for our clients. We deliver your competitive edge. Connect with Spend Management Experts on TwitterLinkedIn, and the Spend Management Experts blog.

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