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

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.9 in February, which was 0.2 percent ahead of January and also 0.1 percent ahead of the 12-month average of 56.8. Economic activity in the non-manufacturing sector has grown for the last 61 months, according to ISM.

Non asset-based third-party logistics (3PL) services and logistics technology services provider Transplace said today that Brooks Bentz has joined the company in a newly-created role as president of Transplace Consulting in conjunction with the launch of the company’s new North American consulting services practice.

The advent of e-commerce continues to grow and gain increased traction over time. The many ways for consumers to order and purchase goods online continues to expand and leads to various subsequent byproducts of online purchases, including shopping through multiple channels, and delivery and payment options, among other things. These types of topics serve as the thesis in the second annual UPS Pulse of the Online Shopper Global Study issued this week by UPS and comScore Inc.

A major highlight of CEVA’s fourth quarter performance was its new business wins, which were up 14 percent for all of 2014, with Freight Management wins up 14 percent, and Ocean Freight and Air Freight wins up 30 percent and 14 percent, respectively, while Contract Logistics wins were up 2 percent.

When an industry is changing rapidly, companies must adapt in order to survive. In this whitepaper, a global publisher was seeking a partner that could mitigate risk and build a platform flexible enough for their shifting customer expectations. The solution enabled the company to rewrite their operations game plan and transform their supply chain.

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA