Tag: North America

US Retail E-Commerce: Slower But Still Steady Growth

Posted by | Jun 12, 2008 | |

Although consumers are reacting to the economic downturn by spending less, this will create more of a hardship for retail stores than for e-tailers. A drop in new online buyers—an inevitable sign of the maturation of the online retail channel—will contribute most to the decline of e-commerce sales growth.

The US Retail E-Commerce report charts and analyzes the factors that are contributing to the changing dynamics in online sales.
Consumers are reacting to the economic slowdown by cutting back on discretionary spending. However, store sales will be hit harder than Internet sales because affluent shoppers, who form the core of online buyers, tend to ride out economic downturns better than lower- and middle-income consumers.
Some consumers even plan to increase online spending to save gas money or find bargains.
eMarketer estimates that US retail e-commerce sales (excluding travel) will reach USD 146 billion in 2008, up 14.3% over 2007. Still, over the next few years sales growth rates will steadily decline.

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FedEx files suit on Washington State Department of Labor & Industries

Posted by | Jun 12, 2008 | |

FedEx Corp unit FedEx Ground has filed a lawsuit against the Washington State Department of Labor & Industries seeking to gain control of an unedited copy of a report on the company’s use of contractors to deliver packages.

The lawsuit, filed with the Superior Court of Washington for Thurston County on Monday, is the latest chapter in a broad-ranging battle between FedEx Ground and a number of critics of its contractor model, including the Teamsters union.

FedEx Ground uses some 15,000 independent contractors as drivers whom the company describes as entrepreneurs.

FedEx Ground states in the lawsuit that it was contacted by an employee of the labor department in late 2006 or early 2007 who stated that the department had received a report addressing FedEx Ground’s classification of “pick-up and delivery drivers” from an entity named Clark Consulting.

In February 2007 FedEx Ground said it issued a Public Disclosure Act request to the labor department seeking a copy of the report and information about who compiled it. The labor department originally refused to release the report, FedEx Ground said in its filing.

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UPS Canada to expand logistics campus in Burlington, Ontario

Posted by | Jun 11, 2008 | |

Less than two years after its grand opening, UPS Canada is already expanding its Burlington strategic logistics campus. The expansion of more than 175,000 square feet will support faster shipping turn-around for the local, national and international businesses UPS serves in the area.

The centre, located at 4156 Mainway in Burlington, will expand from its current 800,000 square feet in two buildings to more than 975,000 square feet with the addition of a third distribution centre. The decision to enlarge the facility was made after the current centre, including 55,000 square feet of storage area, hit maximum capacity.

The campus serves as a key central supply chain facility in Canada for major national retailers. Increasing e-commerce activity across Canada is driving customer requirements for post-sales service and returns management. The latest UPS expansion also is expected to support after-sales activity and critical parts inventory management for high-value technology components and computer products.

The strategic logistics campus opened in September 2006 and currently employs 500 people to provide order fulfillment, freight receiving, shipment preparation and inventory management. The expansion is expected to create 15-to-20 new jobs for southwest Ontario’s economy.

Customers who better manage their supply chains typically realize cost reductions of 10 to 20 percent. The multi-client campus links with UPS Canada’s transportation network of package and freight services. A portion of the facility is a specialized healthcare centre focused on the needs of pharmaceutical and medical device industries with compliance and quality assurance that adhere to Health Products and Food Branch Inspectorate regulations.

The UPS Burlington logistics campus is part of a global network of more than 1,000 warehousing and freight processing facilities and critical parts stocking locations in more than 120 countries.

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Retail shippers offering Postal Service products pay of (U.S)

Posted by | Jun 11, 2008 | |

Hundreds of retail shipping service owners accepting letters and packages for their customers are finding that offering U.S. Postal Service products and services makes good business sense and pays off big. Since its inception two years ago, more than 2,000 retail shipping service operators have surpassed USD 40 million in sales by participating in the Postal Service’s Approved Shipper program.

“The Approved Shipper Program enables the Postal Service to become more competitive in the retail package market while providing our customers with alternate access to postal products and services,” said U.S. Postal Service Retail Vice President Kathy Ainsworth. “Since our April 2006 program launch, more than 2,000 shipping retailers have realized the value of the program through nearly USD 42.5 million in sales. Retailers have the option of adding a surcharge while continuing to sell competitor products and services.”

According to Gary Laing, owner of The Shipping Room, in Oneonta, NY, his walk-in business increased 50 percent since signing up two years ago, and Postal Service sales exceeded USD 500,000 last year.

“The ‘Ship Package Here’ signs bearing the U.S. Postal Service Eagle logo gives me an edge as it tells my customers I offer products and services my competitors don’t,” Laing explained. “My revenue numbers make it clear that Postal Service offerings are in high demand.”

Other benefits include the program’s no-fee license agreement, free signs and other Postal Service materials.

To offer postal products and services, retail shippers must:
*currently use a postage meter or PC Postage account;
*ensure physical security of the mail;
*properly display Postal Service signs;
*comply with aviation security and hazmat requirements;
*follow the Postal Service product guide for approved shippers;
*accept Click-N-Ship® and other prepaid packages;
*obtain approval of the Postal Service’s local district manager;

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UPS expands logistics campus in Canada

Posted by | Jun 11, 2008 | |

UPS’s Canadian division is adding 175,000 square feet to its two-year-old Burlington strategic logistics campus.

UPS said the addition will support faster shipping turn-around for the local, national and international businesses UPS serves in the area. When the project is complete, the campus will be 975,000 square feet.

The campus is an important central supply chain facility in Canada for major national retailers. Increasing e-commerce activity across Canada is driving customer requirements for post-sales service and returns management, UPS said.

“UPS is focussed on giving Canadian businesses a competitive edge, and the services offered by this expanded facility will increase the efficiency of our customers’ supply chains,” said Jan Macaulay, Vice President of business solutions for UPS Supply Chain Logistics.

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