Will distributed satellite facilities and automation maintain holiday hiring as volumes grow at FedEx and UPS ?

An article in the Wall Street Journal (Sept 30, 2016) titled “FedEx, UPS Gear Up for Holiday Season With More Sorting Hubs, Technology” describes moves by FedEx and UPS to create satellite facilities and mobile delivery centers respectively, and increase sort automation to handle the holiday surge in packages. In addition, the increased purchase of bulky products has caused an increase in prices for shipping those items and dedicated space by FedEx to handle them at its facilities. Will these distributed sort centers and automation provide the flexibility required to handle the holiday package mix and short delivery lead times expected by consumers ? Can ecommerce companies get consumers to plan ahead by offering better deals or will competition result in a descent to the shortest lead time and free delivery ? How could brick and mortar stores compete on lead times, given that they already hold inventory close to consumer locations ?

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About aviyer2010

Professor
This entry was posted in consumer, Cost, delivery, Ecommerce, logistics, Operations Management, ordering, Prices, Service Operations, Supply Chain Issues, technology, Uncategorized. Bookmark the permalink.

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