DC Velocity - March 2012

newsworthy

short takes

Descartes Systems Group, a developer of logistics technology, has acquired GeoMicro Inc., a California-based provider of advanced geographic information systems (GIS) and commercial turn-by-turn navigation. … Matthews International Corp. has launched a new division, Matthews Supply Chain Automation Solutions. The new division will be made up of two long-standing business units, Matthews Marking Products and Holjeron, along with two recently acquired companies, Innovative Picking Technologies Inc. (IPTI) and Lightning Pick Technologies. … Penske Truck Leasing and Penske Logistics plan to hire approximately 3,500 associates within their North American operations throughout 2012. … Manhattan Associates has released its predictions for retail shopping in 2012, and they all point to one factor: Web and mobile are fundamentally changing the way people shop and are challenging traditional brick-and-mortar retailers. … Kewill, a developer of global trade and logistics solutions, has achieved Oracle Validated Integration with the Oracle E-Business Suite 12. 1 for its Kewill Flagship solution. … Wynright Corp., a supplier of intelligent material handling systems, is celebrating its 40th anniversary this year. The company opened its doors as Warehouse Equipment Inc. on Feb. 15, 1972. … Dematic, a supplier of logistics systems for the factory, warehouse, and distribution center, has expanded its network of regional engineering offices to provide increased access and enhanced support to existing and potential users of automated material handling systems in North America. The new locations include Seattle, Wash.; Los Angeles, Calif.; and Detroit, Mich. … The first phase of Railinc Corp.’s Comprehensive Equipment Performance Monitoring program (CEPM)— CEPM-Wheelsets—was implemented successfully in mid-January. The new component-tracking capabilities of CEPM-Wheelsets give rail carriers, equipment owners, wheel shops, and repair shops visibility into the health status and history of wheelsets. … Airclic, a provider of cloud-based mobility software, exhibited at Retail’s Supply Chain Conference: Logistics 2012 in Dallas. Airclic showcased Order Perform, its cloud-based product for retailers.

USPS launches flat rate box pricing
for Express Mail

The U.S. Postal Service (USPS) has introduced a new packaging configuration for its Express Mail overnight delivery service under which a shipper can pack up to 70 pounds of goods and ship the package anywhere in the country for $39.95.

The new product builds on the launch several years ago of so-
called flat rate boxes for USPS’s two- to three-day delivery serv-
ice known as Priority Mail. That program, by most accounts, has
been a major success. It is best known for the slogan “If it fits, it
ships.”
The USPS said the Express Mail product is best suited to con-
sumers and small-sized merchants selling merchandise online.
USPS already offers flat rate pricing for envelope-sized Express
Mail shipments.

Consumers and businesses shipping internationally can use the boxes for merchandise weighing up to 20 pounds, USPS said. The boxes are priced at $59.95 to Canada and $74.95 to all other countries that accept Express Mail International products, USPS said.

Express Mail is delivered every day of the year and comes with a money-back guarantee.

LOW-COST ALTERNATIVE

Parcel consultants hailed the launch. “This is a great idea,” said
Jerry Hempstead, head of an Orlando, Fla.-based consultancy
that bears his name, in an e-mail. “It coincides nicely with the
Priority Mail menu of flat rate ‘If it fits, it ships’ containers that
USPS had already demonstrated fantastic success with.”
“I like the product,” said Rob Martinez, president and CEO of
San Diego-based parcel consultancy Shipware LLC. Martinez
said USPS piloted the product in six U.S. cities before expanding
it. “Intuition tells me they would not have gone national if [the]
test market(s) flopped,” Martinez said in an e-mail to DC
VELOCITY.

The product dramatically undercuts the non-discounted list pricing offered by USPS’s private-sector rivals, FedEx Corp. and UPS Inc. For example, FedEx charges a list rate of $171 for a 15- pound package shipped coast to coast and delivered the next morning, according to Shipware data. That sum includes fuel surcharges but may exclude so-called accessorial charges, add-ons imposed by the carriers for special services that go beyond basic pickups and deliveries.

However, Martinez does not expect large corporate shippers to migrate to the new product. Many shippers prefer single-source pricing as well as one track-and-trace network for their parcels, Martinez said. In addition, the typical express package is lightweight—three to five pounds—and moves over relatively short distances. For many corporate shippers who already have big volume discounts, the cost differential on the average parcel is not wide enough to justify regular and heavy use of the new USPS product, Martinez said. ;