Timely delivery is crucial for e-commerce companies like Amazon.com, Inc. (NASDAQ:AMZN), and that is something what United Parcel Service, Inc. (NYSE:UPS) wasn’t able to deliver last year during the shopping season. CNBC’s Morgan Brennan reported on the measures that United Parcel Service, Inc. (NYSE:UPS) is taking this year while it prepares for the holiday season.
“[…] Last year this wasn’t enough to help prevent the delivery debacle we saw with the Christmas packages, not all packages made it on time for Christmas, that is why United Parcel Service, Inc. (NYSE:UPS) has plowed $675 million in capital and operational expenditures into their network this year now […],” informed Brennan.
Amazon.com, Inc. (NASDAQ:AMZN) is well aware that there are only a few things worse than getting a Christmas gift after Christmas, which puts the e-commerce player at a great reputational disadvantage among its customers. Brennan revealed how United Parcel Service, Inc. (NYSE:UPS)’s investment will help deliver packages of online merchandise faster.
“[…] Looking at some of those investments, automation upgrades in this and other facilities, detailed forecasting tools, they rolled out more GPS software in order to optimize drivers, and here room for more customer trailers to increase capacity not on top of more workers, more operating days , and temporary sorting hubs […],” said Brennan.
This has led to much better prospects for Amazon.com, Inc. (NASDAQ:AMZN)’s parcels to arrive on time. In fact Brennan reported that the current on-time delivery rate considering the Cyber Monday sales paints a pretty encouraging picture. United Parcel Service, Inc. (NYSE:UPS) performed better on this metric than its rival Fedex. Its on-time delivery rate stood at 97% as opposed to Fedex’s 96%, which in itself is not bad at all either.
Amazon.com, Inc. (NASDAQ:AMZN) is currently up about 2% and trading around $312.
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