> Seems weird that retailers are complaining over a $100 cost (very generous estimate) spread over 100+ packages
Some counterpoints:
- 100 as a cost for a truck run sounds like it could be a little low; you've got to load/unload them, and I'm not certain what the drop-off process looks like if you have more than a couple packages. I know from experience, loading up a van full of 50 PCs and monitors, driving to a location, and unloading, then driving back is a 1-2ish hour job for two people. (And in that case, the Van was already owned.) Yes that's a bit more of an 'extreme' example but since Newegg was one of the impacted retailers it felt like a relevant example.
- Online retail's 'Race to the bottom' has eliminated for many industries the ability to buffer for cost shifts like this. By that I mean, 100$ over 100 packages would still be an extra dollar per package. But if you're selling 5-10$ gloves, that 1$ may be cutting your profits in half.
If you get a truck, that would be 100 for the truck, and the driver is most likely on the payroll already. Being a big enough shipper, you should get the loading equipment from UPs, if you don't have it already. Preload the goods, roll them on your truck, deliver them to depot and roll them of again. Or use pallets, if UPS is ok with that.
Getting the slots at the UPS depot might be tricky, so. It shouldn't be such a huge cost driver, so.
True that! Maybe a good reason to not use semi trucks, driving times are less strict for 3.5 tons over here. If it is not getting out of hand, these things should still manageable, so. Also playing with specific pick up schedules and ship methods, e.g. express vs. standard, can help. All in all some very nice Q4 stuff!
I work at UPS. We hand-load and unload everything. The loading equipment is a guy. If there is palletized volume then once it gets to the hub the pallet is broken down. When a trailer is being unloaded a worker is physically inside the trailer grabbing each and every individual package and placing them on a conveyor belt that takes the package to be sorted. Irregular packages (exceptional size, weight) are pushed out of the trailer and then loaded onto another, larger belt. This process may differ at other facilities, but that’s how it works in Raleigh, NC.
Some counterpoints:
- 100 as a cost for a truck run sounds like it could be a little low; you've got to load/unload them, and I'm not certain what the drop-off process looks like if you have more than a couple packages. I know from experience, loading up a van full of 50 PCs and monitors, driving to a location, and unloading, then driving back is a 1-2ish hour job for two people. (And in that case, the Van was already owned.) Yes that's a bit more of an 'extreme' example but since Newegg was one of the impacted retailers it felt like a relevant example.
- Online retail's 'Race to the bottom' has eliminated for many industries the ability to buffer for cost shifts like this. By that I mean, 100$ over 100 packages would still be an extra dollar per package. But if you're selling 5-10$ gloves, that 1$ may be cutting your profits in half.