Dean Maciuba’s Post

Amazon Testing Packaging Changes It’s good to see that Amazon continues to go down the path of improving the sustainability of outer packaging. All those empty Amazon boxes hanging out in our basements and garages are a constant reminder that ecommerce is generally, contrary to sustainability, and a black eye for the industry. My macro view of this new packaging solution includes: ·       On-demand custom packaging is not a new solution/technology that potentially drives overall lower packaging costs for the merchants and indirectly supports sustainability.   ·       Per the article, it appears that this packaging solution is limited to single items, which is contrary to reducing transportation cost and supporting sustainability initiatives by bunding multi-item orders via a single packaging solution. ·       On-demand packaging technology already exists that permits Amazon to also custom-make a carboard box to efficiently consolidate multiple order items in a single box, eliminating all that dead space that we currently see in our Amazon shipments. As a consumer, if you are serious about preserving our environment, these half-filled boxes we get from Amazon are just plain wrong. More sustainable ecommerce packaging solutions make obvious sense. However, on-demand custom packaging technology tends to cost the merchant more and increase order processing time. That condition needs to be overcome unless Amazon is willing to eat the increased cost of embracing more environmentally friendly packaging solutions. As a consumer, would you pay extra for a more sustainable packaging solution from your ecommerce merchant of choice?   #amazon #sustainability #packaging #ecommerce Perry Lavergne Ian Kerr

FedEx Express: Getting Close to Massive Reorganization and Downsizing of Air Operations Here is more great insight by Eric Kulisch at Freight Waves on FedEx pilot overstaffing issues. My macro-guidance on the subject includes: ·       Get ready for FedEx to announce major cost reductions across every operation that involves US express line-haul/air operations. ·       Small and medium sized markets that host/support aircraft lay-over operations are particularly at risk for reductions and closing. ·       Today, ground support in the US for aircraft operations is heavily focused on direct FedEx employee models versus vendor-partner-relationships. This could change to drive perceived cost savings by using vendors to replace higher cost employees. However, this opens the door to more union organizing efforts, which is already increasing specific to aircraft mechanics. ·       With significantly less Express volume/demand, having a 2nd national air hub in Indianapolis is a costly problem for FedEx that will be difficult to address. UPS currently hosts a lower cost, single national air hub model in the US. ·       FedEx currently has around 19 new cargo aircraft on-order that they don’t exactly need in this environment to reduce cost based on lower demand. It is not at all clear that it makes sense to cancel these orders based on cancelation penalties with Boeing. Finally, the likely cancelation of most, or all the USPS Express lift agreement weighs heavily on FedEx. It wasn’t that many years ago when the USPS paid FedEx $2 billion in a single calendar year to move mail and boxes in the air. The problem is that the current FedEx Express line-haul network is designed to support historically high USPS volume that is going away, and that USPS revenue subsidizes the operational cost of overall FedEx lift operations here in the US.   On the positive side, FedEx has made significant cost savings promises to Wall Street via their DRIVE and Network 2.0 cost savings initiatives. Cost reduction opportunities via shrinking the Express Air operations model will help to satisfy Wall Street expectations. However, the question remains, can FedEx shrink itself to prosperity? #FedEx #fedexground #airfreight #aircargo #alpa #unions Perry Lavergne Ian Kerr

Merry Christmas From Crossroads Parcel Consulting! Merry Christmas and Happy Holidays from Dean and Perry at Crossroads Parcel Consulting. As for our Buffalo holiday weather forecast, about 50 degrees for Sunday and Monday...I took this picture on Wednesday. Do you think I can buy suntan lotion in Buffalo during December? Last year at this time, we were in the process of getting about 5 feet of snow and I ended up hosting 8 friends and relatives for the holiday that were stranded at my house. Lets all be safe this holiday season and GO BILLS! #lastmile #ecommerce #FedEx #UPS #homedelivery

Thanks to Ian Kerr from the Postal Hub Podcast for allowing me to share my thoughts on trends in the US last mile. #lastmile #fedex #ups #quickcommerce #samedaydelivery #ondemanddelivery #ecommerce #homedelivery Ian Kerr Perry Lavergne https://lnkd.in/gbDpWmy7

For the ecommerce merchant, striking the correct balance between affordable delivery cost and service quality, is always critical, especially during the holiday- shipping-season, where up to half of a merchant's annualized sales might occur. #ecommerce #fedex #ups #lastmiledelivery https://lnkd.in/eWB-q_-C

Check out my latest chat and thoughts with Ian Kerr from the Postal Hub Podcast as we discuss: ·       Impact on UPS of their new Collective Bargaining Agreement with the Teamsters. ·       Transformational change at FedEx resulting from the company’s cost cutting initiatives. ·       Reform at the United States Postal Service. ·       The evolving relationships between Amazon and their Delivery Service Partners. Ian and I cover a lot in this Podcast, but then there is a world of change going on at UPS, FedEx, Amazon and the USPS! #FedEx #FedExground #Amazon #USPS #UPS #ecommerce Ian Kerr Perry Lavergne https://lnkd.in/eKFCTzHn share&utm_medium=member_desktop

Air Cargo Volume Still Shrinking Shrinking cargo revenue at America Airlines is consistent with declines at nearly all air carriers that move cargo in the US and Globally. However, these revenue declines are not exactly consistent with a still relatively strong US economy that is slowing but refuses to enter-into a recession. How might this condition be explained? 1)    Reshoring: It’s real and happening, which is reducing the need for faster air cargo services when product is being manufactured closer to home. 2)    COVID Hangover: A lot of air cargo capacity across both dedicated air cargo and passenger airlines was added during COVID. The sudden and new demand was short lived, and all the carriers are paying the price today. 3)    Global Cost Reduction Initiatives: Every day in this slowing economy, we read about corporations, both weak and strong, that are cutting back on spending. Air cargo services are expensive, and an easy target for cost reduction initiatives. Slowing down the supply chain in the spirit of reducing costs via using slower transportation modes is in vogue today and product delays are not necessarily related to a broken supply chain. As a result of these conditions, look for additional capacity and operational reductions across nearly all the air cargo carriers. Here in the US, FedEx Express will need to target major domestic air reductions across all its US operations as the purple tailed Express giant must also address shrinking USPS revenue/volume, and the potential loss of nearly all this business. It wasn't all that long ago that the USPS paid FedEx Express nearly $2 billion/yr. to move Priority, International, Express and Frist Class via the FedEx Express network. #fedexexpress #fedex #ups #USPS #aircargo Perry Lavergne