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Walmart Matches Amazon Announcing Free One-Day Shipping on Many Items

Posted by Land Link on May 22, 2019 10:00:00 AM

In a bid to keep pace with their number one competitor, Walmart announced yesterday that they will offer free one day shipping on many items. Starting May 14, Walmart customers in Phoenix and Las Vegas who buy more than $35 worth of goods enjoyed free one-day shipping. The offer, which Walmart had hinted was in the works and will be applied to as many as 220,000 items, will extend to Southern California in the coming days and will reach about three-quarters of the United States by the end of the year. The $35 minimum was set with the expectation that the average Walmart at that price point would include several items thereby reducing individual unit shipping cost by sending the entire order in one box. Walmart's e-commerce business has not been profitable. In fact, management expects to lose more this year than they did in 2019. Amazon expects to spend $800 million this quarter to cut their shipping costs. Walmart's same day shipping is available to all customers without any membership fees. Amazon's service, on the other hand, is available only to Prime members at an annual cost of $119.

Walmart's Strategy

One thing is clear. The big package companies don't have enough capacity to handle the expected volume of same day deliveries from the big retailers. They may not even want the business. You can expect Target to be adding to the volume as well as other retailers.  Same day delivery from UPS or Fedex would be cost prohibitive. You'll find a range of about $27 to $55 at FedEx and about $30 to $63 at UPS which is clearly not a viable option. So what is Walmart's strategy for this same day service? Walmart is using a surprising strategy on free, next-day shipping that doesn't involve any of its 4,700 US stores. Instead, orders will be filled and shipped from 6 fulfillment centers across the U.S. Walmart plans to further drive down the costs of next-day shipping by making "aggressive investments" in automation and boxing technology. Fulfillment centers are better equipped for those kind of investments according to Walmart CEO, Marc Lore. Walmart will be utilizing its stores for same day order pickup. 

Who Is Gonna Make All These Same Day Deliveries   

The big retailers will have to utilize additional resources to UPS and FedEx. Dozens of start up companies are already in business offering same day delivery. The boom in        e-commerce sales has lead to a surge in package volume and shippers don't have the capacity or network to quickly deliver parcels. This has created a new market and presented a significant opportunity for last mile delivery startups to emerge.

Capital investment and labor are the deterrent to most companies entering the parcel market. For that reason, Deliv.com, Rodie and many others have opened up across the country with limited capital investment. They depend on private van and car owners to make the deliveries as contract workers which is very much like the Uber platform. With the driver unrest Uber has been recently experiencing, these start ups may find some new, willing drivers. The companies won't last if the drivers are not making an adequate wage and one also can't help but wonder when everyone became in such a hurry? To keep informed on this and other industry news, subscribe to our blog.

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Topics: Transportation News, Shipping News, Logistics News, Industry Trends

Kroger Introduces Automated Grocery Delivery In Houston

Posted by Land Link on Apr 24, 2019 4:25:05 PM

The grocery home delivery market is ultra competitive. The big grocery players like Giant, Shop Rite and Wegmans all offer home delivery via manned delivery vehicles. Kroger appears to be first in the autonomous grocery delivery service race. After successful testing last year in Scottsdale Arizona, Kroger, the nation’s largest grocer, has launched a self-driving grocery delivery service in Houston, the latest salvo in a massive grocery market that has supermarket chains investing heavily in new technology to win over online shoppers. Company officials this week showcased the first of dozens of autonomous delivery vehicles planned for Houston: Toyota Priuses outfitted with cameras, sensors and self-driving computer software. In today's competitive grocery market, companies are turning to autonomous vehicles, automation, robotics and artificial intelligence to stand out. Kroger is competing with Amazon, Walmart and other businesses to capture consumers who want fast deliveries without hassles. 

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Topics: Transportation News, Logistics News, Technology

Automated Vehicle Update; Some Hurdles Remain

Posted by Land Link on Apr 16, 2019 9:55:22 AM

Though field testing for automated vehicles has been relatively successful some hurdles to full implementation remain. Namely, consumer acceptance and comfort in riding in these vehicles. Also, alarming is the idea of an 80,000 lb commercial tractor-trailer rolling down the interstate on autopilot. Additional concerns include who will be servicing these vehicles and the threat of domestic terrorism by system hacking. 

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Topics: Transportation News, Technology

2019 Freight Outlook; Slowing Growth. Improving Availability.

Posted by Land Link on Apr 10, 2019 9:37:14 AM

While a number of struggles remain, some conditions have softened in Q4 2018, giving logistics buyers more room to breathe. After a 2018 that saw record setting levels of freight hauling demand and driver pay as tonnage levels reached a 20 year high, the trucking industry is expected to remain strong in 2019 but undergo a bit of a cool down, economists say. Revenue growth remains healthy for all major U.S. transportation sectors, though recent events could level off the rate of growth for some segments in the coming months according to Fitch Ratings in its U.S. Transportation Trends spring report. 

For the economy and the trucking industry, 2018 was spectacular. The U.S. Gross Domestic Product expanded at a 3.5% rate in the third quarter, and the December jobs report from the Bureau of Labor Statistics showed the economy added a robust 312,000 positions.

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Topics: Transportation News, Shipping News

NASSTRAC and CSCMP introduce the ‘Strategic Shipping Program’

Posted by Land Link on Apr 3, 2019 10:11:44 AM

 

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Topics: Transportation News, Shipping News

Transportation Management Trends For 2019

Posted by Land Link on Mar 28, 2019 11:20:28 AM

From expedited transportation services to shipping technology integration, 2019 is shaping up to be a year in which shippers evolve to meet the growing demands of both B2B and B2C sales. To help transportation managers cope with the changing appetites of a growing demographic we'll take a look at some developing supply chain trends in 2019.

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Topics: Transportation News, Logistics News, Industry Trends

The White House Is Getting Aggressive to Answer the Call for More Qualified Truck Drivers

Posted by Land Link on Jul 18, 2018 11:14:58 AM

Department of Transportation will launch a pilot program to permit 18-to-20-year-olds who possess the U.S. military equivalent of a commercial driver’s license (CDL) to operate large trucks in interstate commerce. The Trucking industry has been struggling to meet driver demand for the last 20 years.

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Topics: Transportation News, Industry Trends, Big Data

Safety Tips for The Holiday Weekend

Posted by Land Link on Jun 26, 2018 1:19:01 PM

We thought we might take a break from our usual industry topics to draw attention to a serious issue; driver safety, particularly, over the holiday weekend. Transportation analysts expect a record number of people in the U.S. to travel during the Independence Day weekend. The travel group AAA says almost 45 million Americans will take trips to destinations at least 50 miles from home during the holiday period. Unfortunately, reported road rage incidents are on the rise. The increase in holiday traffic can only add to driver frustration. Do what you must to keep your patience in check this holiday for the sake and safety of your family as well as other travelers. Be cognizant of the stopping distances required by a fully loaded semi-truck.  A fully loaded semi-truck has a gross vehicle weight, depending on its cargo, of up to 80,000 lbs. Compare this to the average loaded weight of a passenger vehicle of 4,000 lbs, and you can see the difference in energy produced by both vehicles.

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Topics: Transportation News, Industry Trends, Technology

How the Trump Tariffs May Affect Shippers

Posted by Land Link on Jun 20, 2018 10:46:47 AM

The Trump administration on Friday escalated a trade war between the world’s two largest economies, moving ahead with tariffs on $50 billion of Chinese goods and provoking an immediate response from Beijing. Today Trump suggested possibly moving forward with additional tariffs which may exceed $200 million. The shipping community has been on edge about the impact the tariffs may have on the logistics market since the tariffs were proposed some 18 months ago. Before we examine the potential fallout lets outline precisely what industries will be affected.

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Topics: Transportation News, Logistics Business, Shipping News

A Glimpse into the Future of Transportation

Posted by Land Link on Jun 13, 2018 9:29:43 AM

There are several developing factors refining the world of freight transportation as we currently know it. Technology in the form of ELDs is forcing fleet managers to become more scientific in the management of their assets. The apparently insatiable appetite for immediate gratification from the millennials will force carriers to improve speed to market. This will likely put pressure on trucking companies to better integrate their small parcel and LTL operations so local distribution centers can concentrate on meeting on time final mile deliveries. Data engineering will be at the forefront of everything that goes on in supply chains. Data engineering, according to Dr. Michael Watson of Northwestern University, is "the art and science of blending data from multiple sources, automatically cleaning and filtering the data, and transforming the data to be useful for analysis."  You may have heard the term "Big Data" referring to the volumes of pertinent data accumulated from various sources along the supply chain. This big data will be the source of information in the data engineering process. Another term you've likely heard is IoT or The Internet of Things. The IoT is the network of physical devices, vehicles, home appliances and other items embedded with advanced electronics capable of exchanging data with a central computer over the internet.  

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Topics: Transportation News, Maximizing Routing Efficiencies, Industry Trends, Big Data