• on Jul 6th, 2015 in Delivery & Collection | 0 comments

    It’s Christmas in July for the retail industry. Holiday decorations might not hit stores for a few more months, but retailers are now working on their 2015 holiday plans. 

    And you can bet that shipping strategies are a big part of those plans. Online sales made up about 10 percent of the $616 billion in holiday sales last year, so shipping plans are a top priority for retailers. In addition, more and more retailers are eyeing the international market, which means cross-border shipping is part of the mix as well.

    As for its plans, the shipping industry is likely to heed the ghost of Christmas past to avoid repeating mistakes. UPS reportedly just started informing certain retailers that it will not give discounts on oversized items, such as furniture and grills, this holiday season. These items don’t move on the company’s automated conveyor belts and require more costly manual handling.

    UPS is especially anxious for a spotless 2015 holiday season after 2 years in a row of missteps. In 2013, a surge of last-minute online orders and bad weather led to delivery failures. This past year, UPS spent too much money on extra hires and added automation to avoid the same mistake. While service was strong, the company reported disappointing financial results. 

    For the U.S. Postal Service, our recent audit report provides some insights into what worked well in the 2014 peak holiday season and what could be improved this year. By most accounts, the Postal Service had a successful 2014 holiday shipping season. It processed a record 865.4 million packages during the December 2014 peak period with strong service performance. While the number of packages increased by more than 88 million, delayed packages decreased by 1.8 million compared to the previous year. In addition, service improved in six of the nine package categories the Postal Service measures. 

    Still, it could do better to ensure packages are processed on time so as not to put revenue at risk. Package processing machines should be timely installed and fully utilized during the peak season. In addition, enough temporary workers should be hired to meet peak demand.  

    How soon do you plan to start your holiday shopping this year? Do you expect to do more online shopping this year? If you used online shopping last year, how was your experience?  

  • on Jul 2nd, 2015 in Delivery & Collection | 0 comments

    It’s Christmas in July for the retail industry. Holiday decorations might not hit stores for a few more months, but retailers are now working on their 2015 holiday plans. 

    And you can bet that shipping strategies are a big part of those plans. Online sales made up about 10 percent of the $616 billion in holiday sales last year, so shipping plans are a top priority for retailers. In addition, more and more retailers are eyeing the international market, which means cross-border shipping is part of the mix as well.

    As for its plans, the shipping industry is likely to heed the ghost of Christmas past to avoid repeating mistakes. UPS reportedly just started informing certain retailers that it will not give discounts on oversized items, such as furniture and grills, this holiday season. These items don’t move on the company’s automated conveyor belts and require more costly manual handling.

    UPS is especially anxious for a spotless 2015 holiday season after 2 years in a row of missteps. In 2013, a surge of last-minute online orders and bad weather led to delivery failures. This past year, UPS spent too much money on extra hires and added automation to avoid the same mistake. While service was strong, the company reported disappointing financial results.  For the U.S. Postal Service, our recent audit report provides some insights into what worked well in the 2014 peak holiday season and what could be improved this year. By most accounts, the Postal Service had a successful 2014 holiday shipping season. It processed a record 865.4 million packages during the December 2014 peak period with strong service performance. While the number of packages increased by more than 88 million, delayed packages decreased by 1.8 million compared to the previous year. In addition, service improved in six of the nine package categories the Postal Service measures. 

    Still, it could do better to ensure packages are processed on time so as not to put revenue at risk. Package processing machines should be timely installed and fully utilized during the peak season. In addition, enough temporary workers should be hired to meet peak demand.  

    How soon do you plan to start your holiday shopping this year? Do you expect to do more online shopping this year? If you used online shopping last year, how was your experience?  

  • on Dec 29th, 2014 in Ideas Worth Exploring | 9 comments

    With 1 billion smartphones shipped in 2013, it’s safe to say mobile devices are the future of shopping, banking, and transactions – if not everything. Retailers and technology companies certainly agree, as they race to provide consumers with the ideal mobile payment system.

    Before the holidays, Apple unveiled Apple Pay, a wireless payment system. Thanks to near-field communication technology, Apple Pay lets owners of the newest Apple phones and products pay for goods by scanning their phones on a payment terminal. The Apple Pay account links to a customer’s credit or debit card.

    The company has teamed up with a number of major credit card companies and banks, and therein lies the first potential limitation to the system’s success. Users must have a debit or credit card with one of the approved partners. And they must own a newer Apple device.

    Moreover, some retailers aren’t accepting Apple Pay, including CVS and Rite Aid. Why? Possibly because they – along with Target, Walmart, and others – are developing their own mobile wallet and payment system that would avoid swipe fees and other transaction fees retailers pay to credit card companies. Google Wallet is another option in the mobile payment market, but it, too, only works on newer devices and users still need to link the app to a credit card. This might just be the biggest obstacle of all – developing a mobile wallet that offers consumers more value and ease than just pulling out a credit card.

    Finally, security of data and access to consumer data remain key elements. Do mobile payment solutions protect a consumer’s bank account and credit data? And who has access to the valuable consumer data?

    Still, experts expect mobile payment systems to eventually flourish. Indeed, The Guardian recently suggested the Postal Service “could serve as the backbone” for a new payment system by incorporating a mobile payment app into a basic financial services offering.

    What do you think? Is there a role for the Postal Service in mobile payment apps? Or is this an area best served by the private sector? 

Pages