On the heels of a massive ground services upgrade, UPS still doesn’t have the infrastructure to… deliver 😂.
Things are getting hectic in the world of online shopping. Record online sales for both Black Friday ($9 billion) and Cyber Monday ($10.8 billion) prove that the shift from brick and mortar to ecommerce isn’t going anywhere. It also proves that current major parcel carriers are not equipped to handle the growth.
In an unprecedented attempt to manage such incredible volumes, UPS is refusing – yep, REFUSING – orders from six major retailers.
A Wall Street Journal story reports that UPS told its nationwide network of driver to temporarily refuse orders from GAP, Nike, L. L. Bean, Hot Topic, Newegg, and Macy’s (sorry mom, your present might not make it on time).
According to Paul Ziobro, who broke the story, they literally allocated certain days for pickups and imposed capacity limits on these retailers. And they’ve been telling them for months.
UPS isn’t the only carrier resorting to these measures. FedEx also asked major retailers to create a little margin between promotions and to process orders. But why If we were to create a simple equation to explain, it would look like this.
COVID ecommerce surge + holiday ecommerce surge = 7 million extra packages per day!!!
For carriers, expanding networks is costly. But high volume parcel shippers can’t afford for their order to be refused.
“We’ve seen some pretty inefficient choices from high volume parcel shippers since March.” said Brad Hollister, SwanLeap CEO. “It’s obvious they don’t have the ability to switch networks fluidly. They could avoid capacity issues and even order refusals with a network that adds regional parcel carriers and a TMS that uses AI to return the best possible shipping options.”
UPS admits there may be some delays, but they’re assuring customers that orders will be delivered. In a statement to ABC news a UPS spokesperson said, “If demand exceeds planned allocations, we will work with our larger customers to ensure the volume gets picked up and delivered as more capacity becomes available in our network.”
Still, it’s not a bad idea to get things out the door as soon as possible. Otherwise, you’re going to have shipments that don’t deliver on time.