Today's Top Supply Chain and Logistics News From WSJ - Fox News
E-commerce growth is proving expensive for United Parcel Service Inc. The delivery giant saw strong gains in domestic package volume in the first quarter, but the WSJ's Paul Ziobro and Joshua Jamerson report that costs are also racing upward as the deliveries grow more expensive to complete and the company builds infrastructure to match changing consumer buying patterns. UPS says shipments to homes, a proxy for e-commerce deliveries, rose about 7% in the first quarter, ahead of the 2.6% volume increase in its U.S. parcel business. Those home deliveries are tougher to serve than the more concentrated and economical business-to-business deliveries. UPS is also building two regional hubs that will rely heavily on automation, taking some of the labor cost out of its distribution channels. It's not all about cost: UPS saw operating profit at its supply chain and freight division jump nearly 22%, partly from the need driven by e-commerce for companies to store more goods closer to where shoppers live.
E-commerce growth is proving expensive for United Parcel Service Inc. The delivery giant saw strong gains in domestic package volume in the first quarter, but the WSJ's Paul Ziobro and Joshua Jamerson report that costs are also racing upward as the deliveries grow more expensive to complete and the company builds infrastructure to match changing consumer buying patterns. UPS says shipments to homes, a proxy for e-commerce deliveries, rose about 7% in the first quarter, ahead of the 2.6% volume increase in its U.S. parcel business. Those home deliveries are tougher to serve than the more concentrated and economical business-to-business deliveries. UPS is also building two regional hubs that will rely heavily on automation, taking some of the labor cost out of its distribution channels. It's not all about cost: UPS saw operating profit at its supply chain and freight division jump nearly 22%, partly from the need driven by e-commerce for companies to store more goods closer to where shoppers live.
