Who’s Winning in the Small Parcel Delivery Market?

April 1, 2020


Release Date: March 17, 2020

Source: SupplyChainBrain

E-commerce buyers are demanding ever-faster delivery of orders, even though the economics of such services are anything but profitable for providers. John Haber, founder and CEO of Spend Management Experts, describes the current landscape of competitors in that sector.

Bob Bowman, Editor-in-chief of SupplyChainBrain, correctly points out that the economics of 'free shipping' don't work. The only way Amazon can get away with it is because they make so much money with Amazon Web Services - not because they can become more efficient and eventually make a profit.

Haber responds, "Amazon has the benefit of offering Cloud services which makes billions of dollars of profit. And they are using those profits to subsidize the logistics arm."

When FedEx and UPS are both competitors and customers of Amazon, determining who is winning in the small parcel delivery market is very challenging.

Watch the full interview to learn more.


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.

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

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Who’s Winning in the Small Parcel Delivery Market?

April 1, 2020


Release Date: March 17, 2020 Source: SupplyChainBrain E-commerce buyers are demanding ever-faster delivery of orders, even though the economics of such services are anything but profitable for providers. John Haber, founder and CEO of Spend Management Experts, describes the current landscape of competitors in that sector. Bob Bowman, Editor-in-chief of SupplyChainBrain, correctly points out that the economics of 'free shipping' don't work. The only way Amazon can get away with it is because they make so much money with Amazon Web Services - not because they can become more efficient and eventually make a profit. Haber responds, "Amazon has the benefit of offering Cloud services which makes billions of dollars of profit. And they are using those profits to subsidize the logistics arm." When FedEx and UPS are both competitors and customers of Amazon, determining who is winning in the small parcel delivery market is very challenging. Watch the full interview to learn more.


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

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