Trusted names in the package delivery industry are taking note of the changes e-commerce has brought to their marketplace and are responding in kind.

The nation’s premier package delivery companies, FedEx, UPS and Airborne, are investing billions of dollars adjusting to the changes e-commerce has brought to their marketplace. Far from being stunned by the introduction of web-based purchasing, the Big Three are taking full advantage of their existing skills and resources to transform themselves into the leading service providers for evolving e-businesses. These skills and resources include utilizing the latest developments in information technology, operating fleets of planes that number in the hundreds, and maintaining strategic networks including airports and extensive warehousing space.

The package delivery giants have readied themselves by budgeting for the linking of their shipping and carrying systems directly to their client’s web pages. This allows customers to track an order from a seller’s web site by using records managed in real time at the shipping company’s data center. In addition, by utilizing shippers’ warehouses at hub airports, delivery agents can fill orders almost as soon as they are placed and send them out on the next available flight. It is now quite possible for a customer to order an item at 1 a.m. EST and have it delivered later that morning.

Site-integrated logistics is also expected to reduce operating costs associated with returns. With e-logistics, a courier can go to a customer and print a ticket on site, performing the entire transaction within the system. With 10%-20% of all packages being returned, it is estimated that this procedure will reduce the cost of handling by up to 90%.

With FedEx focusing on small to midsize businesses, and UPS targeting midsize to large companies, it´s no wonder the United States Postal Service has jump-started its foray into the e-delivery arena. They recently announced that they would partner its door-to-door service with FedEx’s aircraft network. Established reputations, the leverage to offer permanent outsourcing and considerable financial clout have made FedEx, UPS and Airborne titans in the e-commerce delivery arena. Maintaining customer satisfaction is a capital concern to the Big Three, especially when another service provider is only a click away.

Source: Overnight Partners
James Karney
Internet World, Oct. 15, 2000
http://www.internetworld.com