Subscribe to our free, weekly email newsletter!


Endicia Praises USPS for its E-Commerce Initiative

USPS has been keen on phasing out Saturday delivery for some time. Meanwhile, it has made significant strides on the package delivery side.
By Patrick Burnson, Executive Editor
February 08, 2013

Shippers concerned that they will have fewer express transport options once the United States Postal Service (USPS) ceases Saturday deliveries have nothing to fear, said Amine Khechfe, Endicia co-founder and general manager.

“Given the increased projections of ecommerce overall, we expect the parcel shipping segment to continue to grow,” he said. “To support this growth, USPS plans to continue delivering packages on Saturdays, without the surcharges typically tagged on by the private carriers.”

In an interview with Supply Chain Management Review—a sister publication—Khechfe said he recently met with Patrick R. Donahoe, Postmaster General and CEO, who told him that USPS was moving its concentration from letters to parcels as part of an ongoing strategy to recover its loses and be placed on a positive revenue position.

“Clearly, with this announcement, USPS is putting money where its mouth is,” said Khechfe.

As reported here, the USPS has been keen on phasing out Saturday delivery for some time. Meanwhile, it has made significant strides on the package delivery side, which has seen a 14 percent volume increase going back to 2010. USPS officials noted that its projections of continued strong package growth over the next decade drove this revised approach to maintain package delivery six times per week. 


Fiscal year 2012 shipping and package services business revenues for the USPS were up $926 million—or 8.7 percent—at $11.6 billion, and volumes were up 201 million pieces at a 6.6 percent annual growth clip. 
These services include Priority Mail, Express Mail, Parcel Select and Parcel Return services and account for 2.2 percent of total USPS volume and 17.8 percent of total revenue. USPS officials pointed to e-commerce fulfillment and last-mile services as drivers for its strong performance.

Given the vast USPS national network, Khechefe maintained that the bealegured government agency can “leverage its infrastructure” for maximum advantage.

“We see this as a top line move that shows real initiative in addressing problems that can’t be solved by Congress,” he said.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

A number of key topics impacting the freight transportation and logistics marketplace were front and center at a panel at the Council of Supply Chain Management Annual Conference in San Antonio last week.

The relationships between third-party logistics (3PL) service providers and shippers are seeing ongoing developments due in large part to the continuing emergence and sophistication of omni-channel retailing. That was one of the key findings of The 19th Annual Third-Party Logistics Study, which was released by consultancy Capgemini Group, Penn State University, and Korn/Ferry International, a global talent advisory firm.

Optimism in the form of increasing profits was a key takeaway in the Annual Survey of Third-Party Logistics (3PL) CEOs, released earlier this week at the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA