After Snafus Last Year, Delivery Companies Adjust to New E-Commerce Patterns
United Parcel Service Inc. and FedEx Corp. are gearing up for a new test of their ability to handle the surge in holiday e-commerce: The frenzy of online shopping that now comes at the beginning of Thanksgiving weekend, instead of afterward.
They learned that lesson the hard way last year. In 2013, the delivery companies were caught off guard when their shipments jumped 23% the week after Thanksgiving, according to shipment-tracking software developer Shipmatrix Inc. Not only was that a big increase, it came earlier than expected.
UPS this year will run full operations—including sending out its drivers—on Black Friday. It has added 49 new shifts of employees for the holiday season to sort packages at its hubs, and 900 new trailer spots at its biggest air hub, where the company had trouble unloading retail parcels fast enough last year.
For the coming season, FedEx Ground is upgrading its network to accelerate delivery by at least one day in more than two-thirds of the U.S., as well as introducing a new reporting system to help with delivery planning. FedEx already runs seven-day operations during its busiest times, including on that day.