Disruption in Transportation and Delivery C-Suite Webinar
March 14, 2017
In its latest webinar, C-Suite, a private online community for business executives with VP Level careers and above, hosted our Founder and CEO, John Haber. Entitled, “Disruption in Transportation and Delivery,” the lively webinar covers a range of thought-provoking insights.
Leading the discussion with how delivery is transforming, Haber highlights how ‘free’ shipping has become an expectation in a market that is accustomed to delivery times of up to 5 days or even more. Today, Amazon has changed the paradigm by introducing free 2-day shipping as part of its Prime membership. Haber cautions that ‘free’ shipping is not really free depending on how much or able retailers can subsidize it. In addition, the two-day delivery norm is now giving way to same-day delivery as Amazon continues to push the delivery time envelope.
Increasing competition in last-mile delivery is another topic discussed. Over the next five years or so, FedEx, UPS and USPS will experience competition not seen in decades – regional carriers, startups such as Postmates, Deliv, Instacart and tech giants like Amazon and Uber. However, for many of these rising competitors to thrive, a comfort level will need to be reached by consumers who, for years, have developed relationships with their UPS or FedEx drivers. Service levels can also vary greatly and will need to be further developed and expanded in order to effectively compete against the Big 3.
It’s anticipated that increasing competition in last mile delivery will result in lower rates. In the meantime, in order to survive, retailers will need to understand their shipping costs. According to John, there are more than 300 surcharges in the form of extra charges for extended areas, residential, fuel and more. DIM weight pricing also has had a major impact on shipping costs for retailers. SME works with clients to understand and reduce their transportation spend through our risk-free business model.
To find out more on how SME helps clients, check out our website. In addition, enjoy the webinar in its entirety by clicking here.