Retailers are focused on balancing tight inventory management and high levels of customer service.  They want to avoid stock outs so as not to lose sales revenue while also avoiding holding too much inventory that is later heavily discounted to move the excess inventory.   Wal-Mart, who is always searching for opportunities to gain efficiencies in their supply chain, recently announced that US vendors shipping to distribution centers must deliver within a four day window leading up to the must-arrive-by-date (MABD). 

Multi-channel merchants like K-Mart / Sears, Target, Costco, Kohls, and several others, are ramping up their online efforts.   Vendors are required to implement EDI to exchange business documents that facilitate cross-channel orders.  Warehouse management and outbound shipping systems have to be tuned to ship to multiple touch points for a single customer account, including drop shipping direct to the consumers address.  The recession forced merchants to focus on effective inventory management which manifested tighter demand sensing throughout the supply chain and information exchange across supply chain partners.  Merchants and vendors inventory on-hand and demand numbers are shared through the exchange of EDI documents and business portals. 

Word from several shipping sources is that UPS Ground service will increase 4.9%.
UPS Air and International Services will increase a net 4.9% through a combination of a 6.9% increase in the base rate and a 2% reduction in the Air and International Services fuel surcharge.

vShip from vSync will incorporate the rate changes as soon as they are made available.  The rates are expected to be published December 18th – stay tuned for more details…we’ll keep you posted!          What the heck is vShip?

In September, FedEx posted their 2010 Express Rate preview stating “FedEx package and freight rates will increase an average of 5.9% for US and US export services.  The rate increase will be partially offset by adjusting the fuel price at which the fuel surcharges begin, reducing the fuel surcharge by 2 percentage points.”

Rate increases will effect Express Saver, First Overnight, Express, Standard and 2-Day services.  Per FedEx’s post there will also be changes to accessorial charges and increases to many of the commonly assessed surcharges as well.  An additional Delivery Area Surcharge to select remote zip codes for residential shipments as well as some new Minimum Billable Weight charges on select FedEx provided packaging will occur.