{"id":9144,"date":"2021-01-06T12:57:22","date_gmt":"2021-01-06T11:57:22","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=9144"},"modified":"2021-01-06T12:57:22","modified_gmt":"2021-01-06T11:57:22","slug":"fleet-12","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2021\/01\/06\/fleet-12\/","title":{"rendered":"&#8216;Shipageddon&#8217; reshapes fleet strategies"},"content":{"rendered":"<p style=\"text-align: justify;\">The pandemic, economic recovery and holiday season have swirled into a perfect shipping storm that is putting more stress on both the shipper and receiver.<\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">Earlier this fall, <a href=\"https:\/\/shipmatrix.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">ShipMatrix<\/a> president Satish Jindel predicted the U.S. would see a shortfall of 7 million packages per day between Thanksgiving and Christmas. The media dubbed the deficit \u201cShipageddon.\u201d<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">The main cause is e-commerce growth, which globally has increased 30% year over year, <\/span><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-11-27\/-soon-we-ll-be-looking-at-a-black-quarter-black-friday-update\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-preserver-spaces=\"true\">according to <i>Bloomberg<\/i><\/span><\/a><span data-preserver-spaces=\"true\">, which also <\/span>reported physical sales on Black Friday of this year dropped by 52%.<\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">Some of the accelerating forces driving this are the natural increase in activity due to the holiday season, the economic recovery from the COVID-19 pandemic, current outbreaks of COVID-19 keeping people at home, and consumers being accustomed to shorter lead times.<\/span><\/p>\n<p style=\"text-align: justify;\">The U.S. Department of Commerce said online sales now account for<a href=\"https:\/\/www.census.gov\/retail\/mrts\/www\/data\/pdf\/ec_current.pdf?\" target=\"_blank\" rel=\"noopener noreferrer\"> 14% of all sales<\/a>. The upward trajectory has skyrocketed since the pandemic.<\/p>\n<p style=\"text-align: justify;\"><span data-embed-type=\"image\" data-embed-id=\"5fd11583f8ea58ab558b4647\"><img class=\"lazyloaded aligncenter\" src=\"https:\/\/base.imgix.net\/files\/base\/ebm\/fleetowner\/image\/2020\/12\/us_commerce_dept_2011_2020_ecommerce.5fd11582676d2.png?auto=format&amp;fit=max&amp;w=1440\" alt=\"Ecommerce sales as percent of total quarterly sales: Q1 2011 through Q3 2020\" data-src=\"https:\/\/base.imgix.net\/files\/base\/ebm\/fleetowner\/image\/2020\/12\/us_commerce_dept_2011_2020_ecommerce.5fd11582676d2.png?auto=format&amp;fit=max&amp;w=1440\" data-image-id=\"5fd11583f8ea58ab558b4647\" \/><span class=\"caption\">Ecommerce sales as percent of total quarterly sales: Q1 2011 through Q3 2020<\/span><span class=\"credit\">Graph: U.S. Department of Commerce<\/span><\/span><span data-preserver-spaces=\"true\"><br \/>\n<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">The impact may not be as severe as Jindel forecasted, as logistics leaders started increasing seasonal employment in preparation for the online onslaught. UPS reported it would add 100,000 seasonal workers, FedEx 70,000, and DHL 10,000. FedEx also acquired ShopRunner, an e-commerce site focusing on clothing that offers two-day deliveries.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">\u201cThe acquisition, once closed, aligns with our continued efforts to create an open, collaborative e-commerce ecosystem that helps merchants deliver seamless experiences for their customers,\u201d said Raj Subramaniam, FedEx president and CEO.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">The United States Postal Service also hired ShipMatrix to support its operations with marketing, communication, and IT.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">In the last week, though, there have still been delays. UPS told drivers to cease pickups at retailers including Macy\u2019s, L.L. Bean, and NewEgg, an online electronics provider,\u00a0<\/span><a href=\"https:\/\/www.wsj.com\/articles\/ups-slaps-shipping-limits-on-gap-nike-to-manage-e-commerce-surge-11606926669\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-preserver-spaces=\"true\">according to the <i>Wall Street Journa<\/i>l<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">The USPS has also experienced delays. Truckers in Cleveland <a href=\"https:\/\/www.news5cleveland.com\/news\/local-news\/cleveland-metro\/truck-drivers-report-waiting-more-than-15-hours-at-post-office\" target=\"_blank\" rel=\"noopener noreferrer\">reported<\/a> delays up to 15 hours, <a href=\"https:\/\/www.wlky.com\/article\/louisville-customers-experiencing-significant-delivery-delays-at-usps\/34899254\" target=\"_blank\" rel=\"noopener noreferrer\">while in Louisville<\/a>, a business called JSO Wood Products said customers were waiting on packages for more than a month.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">In a statement, USPS said: \u201cThe Postal Service is experiencing significant volume increases, while at the same time employee availability has been reduced due to the impacts of COVID-19. We are flexing our resources to process and deliver the mail as quickly as possible.\u201d<\/span><\/p>\n<h3 style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">Solutions<\/span><\/h3>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">While the name Shipageddon, and these anecdotal occurrences, hint at a dark and foreboding future, logistics experts really see this moment as just the latest inflection point for a world changing from the physical to the digital. It\u2019s a sign not of the end, but the beginning. And that logistics companies must radically shift their e-commerce strategies.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">\u201cCompanies thought that they had three years to execute on e-commerce growth, because of the way that it was coming in, where we went from 8% to 10% to 12%,\u201d explained Drew Ehlers, Zebra Technologies&#8217; global futurist. \u201cBut now all of a sudden, this pandemic hit, and we&#8217;re in the 30 to 60% range, depending upon the month, typically averaging out around 43%. People don&#8217;t have three years anymore; they&#8217;ve got six months.\u201d<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">Zebra offers technology solutions such as <a href=\"https:\/\/www.zebra.com\/us\/en\/solutions\/intelligent-edge-solutions\/smartpack\/trailer.html\" target=\"_blank\" rel=\"noopener noreferrer\">SmartPack Trailer<\/a>, a suite of sensors and software deployed at the trailer and loading docks to help give shippers and receivers better visibility at the loading dock.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">For example, a camera at the distribution center door can peer into the trailer and use machine learning to guide cargo stackers on how to safely and efficiently build their walls of boxes to optimize fullness. This ensures fleets with limited capacity due to higher demand and fewer drivers, due to the general trucking industry shortage exacerbated by COVID-19 infections, can still fulfill their service-level agreements. Amazon, for example, has to hit those two-day lead times, or its standing with its Prime members wanting that air fryer in 48 hours will take a hit.<\/span><\/p>\n<p style=\"text-align: center;\"><span data-embed-type=\"image\" data-embed-id=\"5fd2246af33eacc64f8b46be\"><img class=\"lazyloaded aligncenter\" src=\"https:\/\/base.imgix.net\/files\/base\/ebm\/fleetowner\/image\/2020\/12\/zebra_smartpack_trailer_cam.5fd22469baa32.png?auto=format&amp;fit=max&amp;w=1440\" alt=\"The Zebra SmartPack Trailer solution uses machine visioning to identify the safest, most efficient way to stack boxes in a trailer.\" data-src=\"https:\/\/base.imgix.net\/files\/base\/ebm\/fleetowner\/image\/2020\/12\/zebra_smartpack_trailer_cam.5fd22469baa32.png?auto=format&amp;fit=max&amp;w=1440\" data-image-id=\"5fd2246af33eacc64f8b46be\" \/><span class=\"caption\">The Zebra SmartPack Trailer solution uses machine visioning to identify the safest, most efficient way to stack boxes in a trailer.<\/span><span class=\"credit\">Screenshot: Zebra<\/span><\/span><span data-preserver-spaces=\"true\"><br \/>\n<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">\u201cDeploying solutions such as this can help alleviate some of [the current issues] by allowing them to ship more goods and less time,\u201d Ehlers explained. \u201cIf your typical efficiency rate is around 85%, and you&#8217;re able to get that in the high 90s, and you add that up over a full workday, you&#8217;re able to eliminate one truck per day.\u201d<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">A better understanding of inbound and outbound trailer visibility should also mitigate increased demand.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">\u201cAsset utilization is going to be incredibly important \u2014 knowing where it is, or where it isn&#8217;t, whether it&#8217;s picking up something or if it\u2019s deadheading bank or bringing back a load from a supplier, all those things need to work in synchronization today,\u201d said Mark Stanton, general manager at <a href=\"https:\/\/www.powerfleet.com\/solutions\/powerfleet-for-industrial\/\" target=\"_blank\" rel=\"noopener noreferrer\">PowerFleet for Industrial<\/a>.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">PowerFleet provides a technology suite to track tractor health and location, trailer assets, and the products within them, along with coordinating the receiver end.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">\u201cThey may have a very, very good inbound scheduling system, but if they don&#8217;t have a tracking system as to where the trailer is in the yard and what\u2019s in it, there&#8217;s a there&#8217;s an opportunity for something to go wrong,\u201d Stanton said.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">Having the distribution center aware of a temperature increase on a refrigerated truck could allow them to expedite offloading to prevent the loss of 1,000 frozen turkeys, Stanton said.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">PowerFleet also provides insights into driver hours of service via electronic logging device (ELD) data, which will alert management to any potential compliance violations.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">\u201cWe\u2019ve got to make sure that information is available to the back office so that they can try and make some educated decisions,\u201d Stanton said.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\"><a href=\"https:\/\/www.merchantsfleet.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Merchants Fleet<\/a>, one of the top 10 fleet management providers in the U.S., is helping its 3,000 fleet customers meet the increased demand and pressures from COVID-19 by providing mobile fueling and light maintenance to increase uptime. The company, which has grown 30% YOY, will send subcontractors out to the lot at the end of the workday to fill up vehicle tanks and perform fluid changes and tire work. This allows its clients to focus on their customers as opposed to servicing their trucks.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">\u201cCOVID has pushed e-commerce through the tipping point to cross the chasm,\u201d noted Merchants Fleet CEO Brendan Keegan, who doesn\u2019t think the strain on shippers will end on Christmas Day.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">He said January returns and COVID-19 spikes from holiday gatherings are likely to extend Shipageddon. The long-term impact could be more fleet-building.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">\u201cWe expect in the coming years for a number of retailers and other high-volume shipping companies to go into the fleet space,\u201d Keegan said.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">He believes seasonal rentals and leases, \u201cfleeting up and fleeting down,\u201d may a popular strategy, as \u201ca tremendous amount of [Merchants Fleet] clients\u201d have done just that. The company offers short-term leases for the last mile, short-to-long-term options, and consolidated leaseback programs.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">Using telematics will also be paramount to fleet strategies.<br \/>\n<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">\u201cStart to leverage your fleet data, and identify what some analytics drive your decisions for 2021,\u201d Keegan said. One example is using route optimization data to find the highest density areas where the fleet operates, to better allocate drivers, and to potentially erect new distribution centers and hubs.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">Even after the pandemic subsides, e-commerce will keep going strong, Keegan asserted, offering the Ralph Waldo Emerson quote: \u201cThe mind, once stretched by a new idea, never returns to its original dimensions.\u201d<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">Keegan\u2019s teenagers, for instance, have no context for waiting more than 48 hours for a package, and therefore would resist longer lead times.<br \/>\n<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">\u201cThe question really starts to become in Q2, Q3, and Q4, when we come out of COVID, how many of those minds have been changed forever?\u201d Keegan pondered.<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-preserver-spaces=\"true\">Accenture reported three out of four consumers will make online holiday purchases this year, with 43% doing so exclusively. <\/span><\/p>\n<div class=\"widget-see-also\">\n<p>&nbsp;<\/p>\n<p>by <span class=\"page-attribution__content-name\"><a href=\"https:\/\/www.fleetowner.com\/home\/contact\/21704576\/john-hitch\">John Hitch<\/a><\/span><\/p>\n<p><span class=\"posted-by\">Source: <a href=\"https:\/\/www.fleetowner.com\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.fleetowner.com<\/a><\/span><\/p>\n<\/div>\n<div class=\"g-cols wpb_row type_default valign_top vc_inner  vc_custom_1585038969469\">\n<div class=\"vc_col-sm-12 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\">\n<div class=\"w-post-elm post_content\">\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>CUT COTS OF THE FLEET WITH OUR AUDIT PROGRAM<\/strong><\/a><\/h3>\n<p><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\"><img loading=\"lazy\" class=\"aligncenter wp-image-5377\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg\" sizes=\"(max-width: 858px) 100vw, 858px\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg 2000w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-300x200.jpg 300w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-1024x682.jpg 1024w\" alt=\"\" width=\"858\" height=\"572\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">The audit is a key tool to know the overall status and provide the analysis, the assessment, the advice, the suggestions and the actions to take in order to cut costs and increase the efficiency and efficacy of the fleet. We propose the following fleet management audit.<\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>FLEET MANAGEMENT AUDIT<\/strong><\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The pandemic, economic recovery and holiday season have swirled into a perfect shipping storm that is putting more stress on both the shipper and receiver. Earlier this fall, ShipMatrix president Satish Jindel predicted the U.S. would see a shortfall of 7 million packages per day between Thanksgiving and Christmas. The media dubbed the deficit \u201cShipageddon.\u201d&#8230;<\/p>\n","protected":false},"author":3,"featured_media":9145,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[331],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/9144"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=9144"}],"version-history":[{"count":1,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/9144\/revisions"}],"predecessor-version":[{"id":9146,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/9144\/revisions\/9146"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/9145"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=9144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=9144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=9144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}