RELIABILITY: Amazon Blocked Sellers From Using FedEx And Now We Know Why.

via Forbes:

A supply chain software company called Convey has done an analysis on 2.5 billion shipping events relating to tens of millions of packages shipped from over 500 thousand locations since Thanksgiving and the results are troubling to any FedEx shareholder: FedEx on-time delivery performance has dropped to 68.3% from 77.5% in the same period in 2018. And FedEx is not alone. The same analysis shows UPS’ on-time stats are down too, from 86% to 80%. Most likely, the increase in the number of packages and the higher percent going to consumers’ homes is overwhelming the companies’ systems and accounts for the decline in on-time performance.

Although these poor performance numbers from FedEx and UPS are bad for Amazon’s customer service in the short-term, this may be a big opportunity for Amazon in the longer term. Amazon is now leaning on these poor performance numbers to continue to build its own delivery business.

Here in the Front Range exurbs, Amazon’s homegrown delivery service had a rocky start. But we’ve found their delivery in recent months to be more reliable than anyone else. They also tend to deliver earlier in the day, which is nice since I’m usually home.

 

 

h/t SG