The Package Revolution

by Tom Moore on Jul 16, 2018 2:47:00 PM

As we celebrate one revolution on July 4, there are other sea changes happening:

Amazon is offering to finance individuals to compete with existing package delivery businesses
While Amazon is setting up owner-operators, the teamsters and UPS have tentatively agreed to a new five-year contract to raise wages for existing workers by about .80¢/hour for each of the next 5 years. The agreement also creates a new class of lower-paid ($20.50/hour to start – going to $30 max) drivers to handle weekend deliveries. Currently, drivers make double time on Sundays
UPS is investing heavily to automate its sorting facilities. FedEx is way ahead of them – and this was reflected in their great earnings last quarter
Trump wants to privatize parts of the post office. Several countries have done this already – and it seems like a great idea

Have a happy and safe 4th, everybody!

Topics:

Supply Chain Optimization