Will coordination between e-commerce retailers and carriers ensure on-time deliveries this Holiday season?

An article in the Wall Street Journal (October 1, 2014) titled “UPS, FedEx Want Retailers to Get Real on Holiday Shipping” describes pleas by the carriers FedEx and UPS to ecommerce retailers to stagger their promotions, avoid promising free overnight shipping, move sales to earlier in December and provide volume projections.  This is is response to the close to 2 million packages that did not arrive on time last year. But competition among retailers is bound to push deals until the very last minute on December 23, with volumes forecasted to increase by 14% this year.  Will threats to stop pickups once capacity limits are reached by carriers be sufficient to manage this year’s package volume surge ? Can customers be enticed to order early with appropriately chosen discounts rather than wait until the end ? Can “marketing and logistics be expected to work closely” this Christmas to enable it be a profitable holiday in addition to be a high package volume event ?

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About aviyer2010

Professor
This entry was posted in Capacity, Collaboration, competitiveness, consumer, Cost, delivery, Ecommerce, retailers and tagged , , , , , . Bookmark the permalink.

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