Another drag on UPS Supply Chain Solutions
Still unquantified and unquantifiable
The first boom of the holiday season is on its way, as deliveries from the online shopping bonanza on “Cyber” Monday start to arrive – along with several media reports on the state of the express companies. Online sales in the US were expected to rise 6- 8% this year – although that growth could be offset by fewer bricks-and-mortar sales. But the real question, according to this article, is whether the delivery companies can handle the growth. DHL has been preparing since the summer and has upped its staff count by 12% for the peak. UPS and FedEx, still red-faced over the disastrous peak in 2013 when some two million packages failed to reach their destination on time, have invested in temporary employees, while FedEx has spent $1.6bn on extra capacity and automation for the season. UPS forecasts a 10% year-on-year increase, while FedEx has opted for a bolder 12.4%. All eyes are now watching to see if they can handle it.
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Alex Lennane
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