Ask Business Management Expert

Holiday hiring is expected to be flat at package-delivery giants FedEx Corp. and United Parcel Service Inc., but that masks efforts behind the scenes to prepare for the coming wave of e-commerce orders. FedEx is opening four new hubs and "dozens" of small, satellite facilities to receive, sort and ship an expected surge in packages between Thanksgiving and Christmas, executives said this week. UPS is expanding a network of temporary sorting hubs and is increasing its use of software to help sort packages faster, a spokeswoman said. Both companies have also invested in automation so they can process more packages over the holidays while keeping staffing levels relatively steady. If their projections hold, FedEx and UPS will have kept the number of seasonal workers steady for two years running, at over 50,000 and 95,000 workers respectively, after sharply ramping up holiday hiring earlier in the decade. "We've been able to hold the line and sustain the number of seasonal workers" despite having more volume, said Susan Rosenberg, a UPS spokeswoman. Many of FedEx's new facilities will have automation technology that moves and scans packages at a faster pace, which helps offset its reliance on hard-to-find seasonal workers, said Raj Subramaniam, an executive vice president at FedEx. The company saw volumes reach 25 million shipments in a day three times during the peak holiday period last year, he said. The Memphis, Tenn., company ultimately kept on seasonal workers into 2016 because of growing e-commerce demand throughout the year. FedEx spokesman Glen Brandow said the projected holiday hiring number could grow, and said there is no link between the company's technology and its flat projection.The automated satellite facilities also bring more FedEx services closer to its retail customers, said Satish Jindel, president of tracking software developer ShipMatrix Inc. FedEx is "realigning the network for the new e-commerce world...They are recognizing that the world of parcel has changed as a result of rapid growth of online retail," he said. UPS's additional "mobile delivery centers," first introduced in 2014, are often built in clusters and are located near population centers where e-commerce is growing quickly. They can be activated to help the Atlanta-based carrier handle the peak rush without further increasing seasonal hires, and deactivated when they aren't needed, Ms. Rosenberg said. UPS is also increasing its use of technology. Instead of memorizing zip codes, software and automation technology help route packages, reducing training time and increasing accuracy. The system also enables UPS to more easily workers between different tasks and units. The changes come as logistics and transportation companies are dealing with the increased complexity and higher costs of fulfilling online orders, which have to be collected, sorted, then sent out to widely scattered addresses in shorter windows of time. As shoppers grow more accustomed to last-minute gift orders, FedEx and UPS, as well as retailers and their other logistics providers, have struggled in recent years to deliver so many packages in time for the holidays. Adding to the complexity, U.S. consumers are also increasingly buying oversized items online, such as exercise bicycles and mattresses, which require manual handling because they cannot be fed onto conveyor belts in automated facilities along with smaller packages.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M92069796
  • Price:- $30

Priced at Now at $30, Verified Solution

Have any Question?


Related Questions in Business Management

Name a company that addressed a recent ethical problem in a

Name a company that addressed a recent ethical problem in a positive way. Also, explain how or if this positively affects us as a community?

When it is appropriate to use the trade-off process what

When it is appropriate to use the trade-off process. What conditions apply, and the technical evaluation criteria that might be used?

Need help with a essay with the following phrase for

Need help with a essay with the following phrase for analyzing : " Capitalism is at the heart of how people and organisations are managed in contemporary society" May i ask for a better explanation of the question? Also ...

How could these three tenets of the auburn creed be used to

How could these three tenets of the Auburn Creed be used to motivate others: "I believe that this is a practical word and that I can count only on what I earn. Therefore, I believe in work, hard work." "I believe in educ ...

How can these two tenets of the auburn creed by used in

How can these two tenets of the Auburn Creed by used in addressing teamwork issues: "I believe in honesty and truthfulness, without which I cannot win the respect and confidence of my fellow men." "I believe in the human ...

Discuss the advantages of having and interacting in a

Discuss the advantages of having and interacting in a diverse workplace. Consider the wide range of ideas and perspectives that a range of team members bring to a team, that are of differing ages, ethnic backgrounds and ...

Parmigiano-reggiano global recognition of geographical

Parmigiano-Reggiano: Global Recognition of Geographical Indications What historical factors have helped support the consortium's claims for the geographic specificity of Parmigiano-Reggiano and Parmesan? What are the eco ...

Communication planthis communication plan will be a roadmap

Communication Plan This communication plan will be a roadmap on how the new division will best be able to communicate with Biotech's corporate headquarters, suppliers, other divisions, and internally. This should lay out ...

Discuss strategies to obtain feedback from a customer and

Discuss strategies to obtain feedback from a customer and clients when working in sales.

Describe different networking methods and the advantages

Describe different networking methods and the advantages and disadvantages of them?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As