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.
- Holiday package deliveries may not arrive in time for Christmas (CBS Evening News)
- Amazon blocking 3rd-party sellers from using FedEx ground shipping (ABC News)
- E-Retail: The Last-Mile Problem (California Management Review)
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
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