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2020 EOY Holidays: Thousands of Jobs Added from Warehouse and Parcel Operators

The winter holiday season is a heavily conflicted time for Americans. December combines two pillars of American culture – adherence to tradition and a drive for commerce. On one hand, it is time for family, tradition, and reflection. On the other hand, it is a massive business undertaking that heavily involves logistics and supply chain industry.

45 Days Left
It is 46 days left till 2020 Black Friday but online commerce and retail stores have already prepared for the biggest holiday sessions of the year

The National Retail Federation released that total holiday retail sales for 2019 topped $730.2 billion. Products bought off the shelves at big-box retailers have to first be transported to those retailers – that is a big reason why the winter holiday season is one of the busiest times of the year for cargo transportation. Over 300 million packages are delivered between Black Friday and Christmas Eve with Supply Chain 24/7. Behind the scenes of the holiday is a supply-chain orchestration that goes largely unnoticed by the public.

Long Haul Truck
Long-haul trucking companies are the backbone of American commerce, bringing products to stores year-round

According to the U.S. Bureau of Labor Statistics, despite the high unemployment rate in the U.S caused by the global pandemic event, warehousing and storage jobs jumped by 32,200 positions. Companies are adding ten of thousands of warehousing jobs as they scale up e-commerce fulfillment and distribution capacity ahead of a high stakes fourth quarter.

Courier and messenger companies that deliver packages to homes and business added 10,300 jobs in September; meanwhile, trucking companies added 4,600 positions.

The rush of logistics hiring comes as analysts warn that soaring e-commerce demand amid the coronavirus pandemic could strain distribution networks during the holiday season. However, companies are struggling to fill open logistics and distribution jobs despite high unemployment during the pandemic, in part because of worker safety concerns. Light-truck and delivery drivers are also in short supply.

Santa Claus: The O.G. of One-Day Shipping & Master of Sustainability

Ho, ho, ho, the holidays are here!  Every year, Santa the OG one-day shipper, delivers billions of presents to all the good children in the entire world in one single night. 

Upholding a track record of 100% on-time deliveries, maintaining a global distribution channel that can span the world in one night, and a keeping committed workforce with zero turnover is not easy!  In order to do it all, Santa’s little helpers must produce over six million presents every day leading up to big holiday to have an inventory large enough to deliver the ~2.5 billion children at the end of the year.  This makes the North Pole home of the most optimized warehouse in the world.  A couple of decades ago, things may have been slightly easier for Santa’s elves, but nowadays they must produce on a make-to-stock basis because a lot of things kids want would be obsolete by next year.  Through a demand-driven supply network, Santa still takes orders from children sitting on his lap as last-minute as Christmas Eve!  He also takes orders by mail and even electronically!  He has a Twitter account (@Santa) and an email address (santa@santaclaus.com) so he’s more accessible than ever before!  Still, he has always delivered with 100% satisfaction often delivering even more than expected.

Considering all the differing time zones, Santa actually has closer to 31 hours to complete his deliveries rather than 24 hours.  He must visit 2.2 million homes an hour traveling over 3,000 times faster than the speed of sound.  His magical sleigh is supped up to carry over 2 million tons assuming all the gifts are of the same size and weight (until he takes it out of his magical sack, of course).  Since it is pulled by a herd of flying reindeer, it is safe to say Santa is also the master of sustainable transportation; leaving a very low carbon footprint throughout all these years.  Santa is also on top of visibility allowing all curious minds on Earth to track his movements in real-time through a GPS tracking device which could be accessed here.

Without Santa Claus, the holidays would be so different. It would take 400,000 trucks, 5,000 of the largest airplanes, and the power to make time stand still in order to deliver presents to every child in one night.  We are so lucky for Saint Nick especially considering we just pay him in milk, cookies, and reindeer treats.

Happy Holidays!!

 

via GIPHY


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We offer competitively low prices, end-to-end solutions, and one-on-one attention for every client– large or small. Contact us today to see how we can fulfill your logistic needs!

Holiday Returns to Set New Record in 2019?

‘Tis the season in more ways than one!  The holidays are upon us and it is no secret that holidays mean gifts, purchases, and a whirlwind of intertwining logistic solutions.  However, one thing often overlooked are the rate of returns during this time of year. 

On November 4th, UPS predicted that this year’s holiday returns will peak at 1.9 million packages on January 2nd, an estimated increase of 26% compared to last year.  This includes the forecasted 1.6 million returns per day the week before Christmas Day because of retail promotions that encourage shoppers to buy gifts early.  USPS is also anticipating almost 2.5 billion pieces of first-class mail (e.g. holiday greeting cards) to be processed during the week of December 16th.

Nowadays, 73% of shoppers are influenced by the return experience of a brand.  Based on their return experience, determines on whether or not they would make another purchase from that company in the future.  Now, more than ever, convenient return policies are in high demand and gives retailers a competitive edge in ecommerce. 

“We estimate UPS will deliver more than 32 million packages per day in the U.S. and around the world, an increase of more than 50% over our regular daily volume,” said Matthew O’Connor, UPS senior manager for public relations.

https://www.ttnews.com/articles/holiday-season-returns-will-set-record-ups-predicts

USPS is already making Sunday deliveries in select major cities and will expand that service to other areas with high package volumes in anticipation of delivering an upward of 800 packages between Thanksgiving and New Year’s Day.  USPS has also announced that for an additional fee, it would make deliveries in select locations on Christmas Day.

Experts suggests that regardless of tariffs, our economy is still growing.  Most likely, Christmas in 2019 will be better than last years.  So, buckle up, logistics experts and providers!  It’s going to be one bustling holiday season!


Don’t forget to sign up for our e-newsletter so you can get the best of our blog on a monthly basis straight to your inbox!.

We offer competitively low prices, end-to-end solutions, and one-on-one attention for every client– large or small. Contact us today to see how we can fulfill your logistic needs!

10 Interesting Facts about the Holiday Season

#1

December 2 is the busiest anticipated shipping day with logistic services handling an upwards of 85 million holiday packages and that’s not including the 2.5 billion pieces of just holiday greeting cards that USPS handle on an annual basis for just the week of December 16th.

#2

53.8% people admit starting their holiday shopping before November with 13% starting as early as before September!  However, the majority (39%) does their holiday shopping during the month of November and up to 4% wait til last minute, shopping on Christmas Eve.

#3

Foot traffic on Black Friday has been slowly decreasing since 2012 with more and more people preferring to do their holiday shopping online.  This year’s Cyber Monday broke records with shoppers spending $9.2 billion online. (Up 17% from 2018.)

#4

Retailers can hire up to 780 thousand seasonal employees and the average person spends around $800 on holiday shopping.

#5

The “golden hours of retail” during Black Friday/Cyber Monday are from 10pm to 2am. During these hours, stores can generate up to 30% of the day’s revenue.

#6

Black Friday deals can pull up to a total of $58 billion a year. For some retailers, the holiday season can make up 25-40% of their total industry sales.

#7

25% of all online traffic on Black Friday come from smart phones.  45% of this demographic are 18-24 year old.

#8

The top 3 reasons why people are starting to prefer doing their shopping online than in stores are: 24-hour shopping convenience (35.1%); easier to compare prices (33.1%); and free shipping offer (31.5%).

#9

Trucks travel an average of 500 million miles during the holidays— to put it in perspective, the distance between the Earth and Jupiter is 483 million miles!

#10

  56% of Americans receive unwanted gifts during the holidays which leads up to 36% returning the unwanted gifts.  The economic impact of returned goods totals over $100 billion with the costs encompassing the labor of collecting, scanning, sorting, crediting the stores, and invoicing vendors.  


Don’t forget to sign up for our e-newsletter so you can get the best of our blog on a monthly basis straight to your inbox!.

We offer competitively low prices, end-to-end solutions, and one-on-one attention for every client– large or small. Contact us today to see how we can fulfill your logistic needs!