Shippers Struggle with Holiday Deliveries

Shippers Struggle with Holiday Deliveries

December 23, 2019

In 2019, overall shipping volume has increased 21% for the holiday season compared to 2018. Cyber Monday and Black Friday occurred later this year, which has contributed to the lower on-time delivery rate.

FedEx’s on-time delivery rate has decreased from 77% to 68% this year.  Likewise, UPS has gone from an 86% to an 80% on-time delivery rate.


Video Spotlight:


This post is based on the CBS News article, Shipping companies struggle to deliver holiday packages on time, by Vladimir Duthiers, December 19, 2019, and the YouTube videos listed in the Video Spotlight. Image source: William Potter/Shutterstock

Discussion Questions:

1. How important is it for a 3PL carrier to have an on-time delivery rate comparable to their industry rivals?

Guidance: Ask students to consider that Amazon no longer works with FedEx.  Imagine how FedEx’s on-time delivery rate would decrease if added package volume from Amazon were being carried.

Students may start to see the decision by Amazon to drop FedEx could possibly be related to Continue reading

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Walmart Raises the Stakes for Supply Chain Reliability

Walmart Raises the Stakes for Supply Chain Reliability

February 19, 2018

Walmart has raised the stakes for supply chain reliability. Its new on-time, in-full delivery guidelines (OTIF) were rolled out in 2017, with escalating requirements for 2018.

Both early and late deliveries get the thumbs down; failure to meet the metrics results in the supplier being fined 3% of the value of their order.

Requirements vary, depending on whether the shipment is a full-truckload or less-than-truckload (LTL) shipment. But either way, suppliers and 3PL’s cannot use weather or other uncontrollable events as acceptable reasons for failure to deliver in full and on time.

This post is based on the Supply Chain 24/7 article, Keeping Pace with Walmart’s On-Time Delivery Requirements, by Scott Bolduc, February 5, 2018. 

Discussion Questions
1. Assume that you are responsible for designing a lean supply chain for a supplier to Walmart. Find a company that supplies packaged water to Walmart from an internet search.  (Or find another company that supplies Walmart if you choose.)  How would you improve the supply chain to become lean to meet the demands Walmart has now imposed for suppliers such as your chosen company?

Guidance: Students should review lean supply chains, facility location considerations, and the Continue reading

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