3 Reasons why UPS Supply Chain is perfect for E-Commerce


UPS Supply chain

UPS supply chain e-commerce

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Many e-commerce sellers use UPS Supply Chain as their preferred 3pl Provider. Some shuffle between FedEx and UPS, whereas some are loyal to just UPS. Some prefer UPS because of its specialty in ground shipping and pricing model. Others prefer FedEx for air shipments. lately, with Amazon Prime, it’s even more complex to decide, which is the best 3pl Provider for E-commerce business, where in customer service is vital. Amazon Prime is the new trend of online logistics marketplace, an economic and speedy shipping model that challenges all the traditional providers such as FedEx and UPS. Here are the 3 contemporary reasons, why I prefer UPS supply chain as a 3pl service provider for my e-commerce business.

1) UPS is ready for the e-commerce industry

Provided that UPS Supply Chain focuses on domestic ground shipping, e-commerce is a better match for UPS than FedEx. However, the beauty of today’s market is that almost every business is building its online presence.

With services like Amazon Prime and Flex, the customer expectations have increased drastically. In order to sustain the price war, e-commerce sellers can only make a reasonable profit out of low-cost shipping.  Thus, the sellers prioritize factors such as price and speed, in shortlisting their preferred channel for the e-commerce transactions.

One good news is that UPS Supply Chain is also innovating its way to accommodate for the online industry, in addition to its core competencies in ground shipping. According to a report on morningstar.com, UPS Supply Chain is making constant upgrades to its business models so that it can prepare for the latest market shifts of low-cost and same-day e-commerce delivery.

In spite of modernization and competition, UPS is still the most preferred delivery vendor for online sellers. To be specific, UPS secures more than 10% segment of the e-commerce delivery business ( Source: dividend.com). The credit goes to its variety of multiple businesses to customer plans.

3 key innovations that UPS has introduced, proving its E-Commerce friendly model: 

  1. UPS has integrated shipping options with e-commerce marketplaces such as Amazon, eBay, and Ali Express. Hence, it can automatically populate your e-commerce order detail when printing your UPS labels.
  2. UPS offers flexible one-click delivery options to e-commerce sellers and their customers. The flexibility eases shipping,  irrespective of the locations, package dimensions, timeline or priorities.
  3. UPS My Choice enables retailers, worldwide to control when and where their shipments arrive. They can reroute or reschedule the delivery to other locations if required. 

 

2) Addition to the list of new dangerous goods

UPS supply chain has expanded its shipping program by adding more than 400 new dangerous goods, along with increment in the allowable quantity of certain dangerous commodities per shipment. This is a great news for the companies, who were unable to sell multiple products in demand, just because they considered dangerous to ship. To illustrate, batteries are considered as hazardous but they are essential for the manufacturing industry.

UPS supply chain has solved a major problem of availing a variety of dangerous goods among 36 countries. This will not only enable companies to import essential raw materials but also add a wide range of products to their e-commerce niche.

UPS has also acquired applications such as UPS Worldship, that ease the dangerous commodities packaging process for the sellers, verifying IATA guidelines. In addition, the application also informs the sellers when the package is ready to ship. Hence the processes of shipping dangerous goods can be intimidating but UPS supply chain utilizes its trained employees and technologies to simplify it. (Source: ups.com)

3) An Extra Operational Day

UPS supply chain has started providing ground delivery and pick-up services on Saturday as well. An extra day of shipping can provide more flexibility and a wide range of options, especially to e-commerce sellers. The shippers now can deliver packages to a wide range of locations, whenever they require. e-commerce sellers can take the maximum advantage of this 6 business day program in the following ways

* Lesser chances of inventory running out of stock– The sellers have an extra day to restock their inventory.

* Enhanced ship from store options -For instance, online retail sellers can take an advantage of Saturday ground pickups, implementing a ship from store strategy to meet the Monday delivery target.

* Higher sales– 46%  of the customers withdraw from placing and order during checkout, for the reason that the estimated ground shipping time is too long. Source: “UPS Website Report“.

* Faster delivery– With an extra day, the sellers no longer need to wait for the weekend to get over for product to reach the customers.

Teresa Finely, the chief marketing executive at UPS quotes “The addition of another ground operations day more efficiently utilizes our existing delivery network and offers customers an even faster ground delivery solution,”.

Further and foremost, UPS supply chain can be beneficial to the shippers in various industries, for the reason that it has added an extra working day. Sellers now have an option to procure and deliver the products faster, and thus design a more productive supply chain.

 

Wrap-up

To summarize, UPS supply chain has adapted according to the changing trends and customer expectations, which still makes it number 1 in the shipping business. 62% of the e-commerce customers prefer ground shipping, which is a specialty of UPS( Source: UPS Website Report )  Thus, UPS is definitely one of the better-suited vendors for the e-commerce business.

When it comes to shipping your business products, though, you need to consider multiple vendors along with UPS. Then you’ll be able to make an informed decision about the delivery vendor that meets your individual business needs.

 

 

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Gopika Jhala, has several years of industry experience in IT Consulting and Project Management. Her research begins at the intersection of technology and operations to analyze the global trends and strategies. She has published widely on a range of topics, from cloud computing, and supply chain management to virtualization.

About

Gopika Jhala, has several years of industry experience in IT Consulting and Project Management. Her research begins at the intersection of technology and operations to analyze the global trends and strategies. She has published widely on a range of topics, from cloud computing, and supply chain management to virtualization.

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