Dean's Carrier Corner

Managing the Workplace Threat Level

Thank you to my partners at Newegg Logistics for supporting my thought-provoking content on their website BLOG. While not the warm and fuzzy content we are normally used to seeing in these types of venues, it is important that we face difficult, cultural issues head-on and not say this could never happen to me or to my company, so I do not need to take action. Also, this is not a political statement on gun control. This is a statement about mitigating the horrendous impact of violence in the American workplace.

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Large Parcel Rate Increases

If you follow me on LinkedIn, you have seen me opining on the parcel based, dynamic pricing environment enveloping the customers of FedEx and UPS. In more simple terms, the mega carriers are and will be taking selective rate increases on a regular basis.

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FedEx Offering Incentives

Working at the FedEx Super Hub is not easy. It is physically demanding work and the hours for most shifts can range between 9:00 PM and 5:00 AM. These jobs have never been easy to fill for FedEx even though pay/benefits are not horrible by any means.

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DynsoSafe

Grocers are going to love DynoSafe in how it supports a refrigerated solution for unattended home-delivery…a clear differentiator in the grocery delivery arena.

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Amazon’s Hottest Third-Party Sellers

If you are an Amazon Marketplace merchant and doing well on the Amazon platform, it might be time to sell-out to private equity investors. Many of us have been characterizing Amazon as the enemy of the on-line merchant as the Amazon marketplace merchant relationship tends to drive down margin.

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On-Line Purchasing Driving More

As indicated in this article, communities concerned about increased traffic resulting from new carrier delivery terminals need to be watching such initiatives closely, as the development of new micro-fulfillment centers will be following new delivery terminals.

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FedEx Express Adds Afternoon Delivery

FedEx Express lower revenue deferred shipments are growing faster than higher revenue, priority shipments. FedEx has known that they could realize significant savings by making shift changes to more efficiently manage this move from priority to deferred shipments.

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Pandemic Driven Change in the Workplace

COVID is driving disruption in the workplace, and parcel carriers and 3PL providers are not immune to that change. Whether driven by management, the employee, or government, the response to the pandemic has forever changed the way we live, work and play. We are entering a period of hypersensitivity in the workplace, especially as it applies to preventing the spread of infectious disease while at work. That hypersensitivity will continue to drive change.

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Universal Parcel Locker (UPL)

The UPL is an automated, electronically connected network of parcel lockers, usually managed by a single entity, that can accept parcels across multiple parcel carriers/retailers or users. No such truly universal parcel locker networks of any size exist in the US, although the concept is gaining popularity in some smaller European countries.

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The Drone Delivery Challenge

It was in February of 2014 that Jeff Bezos announced on 60 minutes that Amazon was developing the technology to support a residential drone delivery solution. Fast forward to 2021, and Amazon is still testing residential delivery via drones, while UPS’s focus is on the business delivery. FedEx is also in the game, but to a lesser extent via a partnership with Wing Aviation.

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(Q&A) DynoSafe

The home delivery is the most important component of the e-commerce value proposition and we are starting to see that value proposition challenged via efforts to redirect residential deliveries to retail access points for consumer pick-up.

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The Evolving E-Commerce Value Proposition

Online merchants, e-marketplaces, parcel carriers, and technology advancements each impact the e-commerce value proposition. In simple terms, that value proposition is still based on an innovative service offering: one with multiple features and benefits that make e-commerce attractive to the consumer and drive purchasing behavior. Some of the primary components of that value proposition include:

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Micro Fulfillment

Amazon continues to drive change in the e-commerce arena, aggressively growing their next-day, Prime delivery initiative. Today, it is nearly impossible for most e-commerce merchants to offer the combination of free-shipping and next-day delivery to most of the continental US, without compromising profit using costly Express delivery services. However, by 2022, Amazon is on track to support affordable next-day delivery to most US addresses and, today, offers the largest on-demand, same-day delivery network, Amazon Flex, in North America.

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