Parcel July/August 2025

PAGE 26

IS AI THE ANSWER TO BATTLING SKYROCKETING SHIPPING COSTS?

PAGE 08 THE BIG THREE? HOW USPS COULD BECOME AS BIG OF A PLAYER AS UPS AND FEDEX.

PAGE 18 TO AUTOMATE OR NOT TO AUTOMATE: THAT IS THE QUESTION.

PAGE 20

/// CONTENTS

Tony Sciarrotta

Chris Schramm

Helaine Rich

Z

Nate Rosier

Vidyesh Swar

Michelle Keske

PRESIDENT CHAD GRIEPENTROG

PUBLISHER

KEN WADDELL

EDITOR

AMANDA ARMENDARIZ [ amanda.c@rbpub.com ]

AUDIENCE DEVELOPMENT MANAGER

RACHEL CHAPMAN [ rachel@rbpub.com ]

CREATIVE DIRECTOR KELLI COOKE

ADVERTISING

KEN WADDELL (m) 608.235.2212 [ ken.w@rbpub.com ]

JOSH VOGT [ josh@rbpub.com ]

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PARCELindustry.com

EDITOR’S

NOTE

LOOKING FORWARD

By Amanda Armendariz

This year marks the 250th anniversary of the United States Postal Service, and as I was putting together these issues of PARCEL and our sister publication, Mailing Systems Technology, I found it so interesting to see how much the organization has changed over the years. Obviously, the differences between now and the early years are stark; the thought of having to travel to one specific city in order to drop off or pick up a mail piece or a package at the overseas collection point (which was a tavern, no less!) is unfathomable in this day of rapid-fire delivery. But even the differences between now and 20, 30 years ago are mindboggling. When I was a child in the 80s and 90s, it was commonplace to order a catalog from a place of business, wait three to five days for it to be delivered, select the products you wanted to purchase, fill

out the perforated form within the catalog, mail it back to the company, and get your items one to two weeks later. And no one thought anything of it, because there were no other options. Now, customers sometimes experience frustration if their packages take more than two days to reach them, with many in heavily populated areas utilizing same-day delivery on a regular basis. It would be incredible if the founders of our nation’s early postal system could see how far we’ve come, and we’re all invested in seeing where this industry goes next.

Of course, with these advancements in our delivery infrastructure come increasingly demanding expectations. Consumers want fast, reliable, sustainable delivery — with regular updates to keep them apprised of their package’s progress. Companies who fail to juggle these demands risk losing their customer base, and as we all know, once a customer is lost, it’s incredibly hard to get them back. Hopefully, this issue of PARCEL gives you a plethora of ways to optimize your small-package operation and stay ahead of the competition.

We hope to see you at PARCEL Forum Chicago, September 8-10. There’s no better place to discuss the future of the small-package industry than this show, so visit PARCELforum.com for more information.

As always, thanks for reading PARCEL.

EDITOR’S PICK

Here are some of the most-read articles on our site in recent weeks. If you haven’t already checked them out, you might want to — there is some great information in there!

Shippers: Battle Chaos and Create Your Own Tariff Contingency Plan

By Michael Falls

Could Predictive Maintenance Be Your Secret Weapon Against Waste?

By Emily Newton

The History and Logic of Small Parcels Import Clearance: An Opinion Piece By Lucas Zheng

PARCEL COUNSEL

LIENS: HOW THEY CAN AFFECT PARCEL SHIPPERS

By Brent Wm. Primus and Andrew M. Danas

In this issue of PARCEL Counsel, we will take a look at liens and how they can affect a parcel shipper. As a starting point, Black's Law Dictionary (12th ed. 2024) defines a lien as a “legal right or interest that a creditor has in another's property, lasting until a debt or duty that it secures is satisfied.” Having a valid lien can give the lien holder the right to hold or sell the property of the person who owes it money until the underlying debt has been paid.

Liens can arise in various types of transactions. In this column, we will focus on those frequently encountered by parcel shippers when shipping goods: motor carrier liens, air and ocean carrier liens, and warehouse liens.

Motor Carrier Liens

Under the common law, a motor carrier has a right to retain cargo in its possession until its charges are paid. Motor carriers also have a statutory right to a lien under Section 7-307 of the Uniform Commercial Code (UCC), which most states have enacted.

It is very important to note that either under the common law or the UCC, the lien only applies for the charges due for the freight which is being held; not charges for previous shipments. Motor carriers can also establish lien rights in their tariffs or terms and conditions, keep-

ing in mind that not all motor carriers have tariffs in place. Significantly, they are written to include charges due for previous shipments; not just for the shipment of the cargo being held.

Air and Ocean Carrier Liens

In international shipping, air carriers; indirect air carriers; ocean carriers; and Non-Vessel Operating Common Carriers (NVOCCs) may also have the right to assert liens under state and federal laws. Usually, they provide for contractual lien rights in their tariffs; waybills; bills of lading; and general terms and conditions. These usually include amounts due for freight charges, detention and demurrage fees, as well as charges of a different nature.

Warehouse Liens

Warehouses also have lien rights on the goods being stored in the warehouse. These rights can arise out of Section 7-209 of the UCC or the terms and conditions of a warehouse receipt.

Avoiding Liens

Parcel shippers can experience many adverse consequences when a carrier or warehouse holds or sells its freight. Most lien disputes are disputes over the payment of current or past-due charges. They can be avoided by the timely payment of charges. However, there are often

times when the charges are in dispute or where there are other circumstances that may prevent timely payment.

Accordingly, the best practice for avoiding a carrier or warehouse lien is a contract wherein the carrier or warehouseman specifically waives its lien rights. At a minimum, it is very important for a shipper to have a basic understanding of liens; how they are created; when they can come into play; and how to avoid them.

All for now!

Brent Wm. Primus, J.D., is the CEO of Primus Law Office, P.A., the Senior Editor of transportlawtexts, inc., and Director of Virtual Education for the Transportation and Logistics Council, Inc.

Andrew M. Danas is Partner, Grove, Jaskiewicz and Cobert, LLP. For more information, visit www. gjcobert.com or email adanas@ danaslaw.com.

Previous columns, including those of William J. Augello, may be found on PARCELindustry.com. Your questions are welcome at brent@primuslawoffice.com.

The information contained in this article is intended to be general background information and should not be relied upon as legal advice. Readers should contact a qualified attorney should they have a specific legal question.

SUPPLY CHAIN SUCCESS

BATTLING SKYROCKETING SHIPPING COSTS WITH AI-POWERED LOGISTICS

By Jena Cardenti

As e-commerce demand continues to surge, businesses are grappling with rising shipping costs, driven by increased parcel volume and frequent rate hikes from carriers. In today’s market, a clean, beginning-of-theyear annual General Rate Increase (GRI) is a thing of the past. Instead, carriers rarely go a month without announcing another price increase. While shippers must absorb these costs, carriers cite rising expenses and shrinking profits. To combat these mounting pressures, shippers should consider turning to artificial intelligence (AI) to reduce costs.

Predicting Demand

AI is changing the way shippers predict demand and manage inventory. By analyzing past data and other external factors, AI can accurately forecast future demand, allowing businesses to better manage stock levels and avoid overstocking or running out of items. In parcel shipping, needing to expedite a shipment due to stockouts or poor planning can be extremely costly. With effective demand planning enabled by AI, companies can take advantage of slower, more cost-effective shipping modes. AI also helps place products where they’re needed most, reducing the need for frequent transfers between warehouses. This leads to faster order fulfillment, which is critical in today’s e-commerce environment. Additionally, AI helps reduce excess inventory, cutting down on storage costs and minimizing the risk of products being wasted or becoming outdated. By providing real-time insights, AI enables companies to quickly respond to shifts in demand, making their supply chains more flexible and efficient.

Automating Freight Classification

Chances are, if you are a large parcel shipper, you typically have LTL freight as well. Freight classification is a critical element for LTL pricing and understanding the tradeoffs between parcel and LTL mode selection. Typically, it’s the responsibility of the shipper, or a third party, to determine the correct classification. A shipper that has an accurate understanding of freight classification can use that knowledge to negotiate better rates and challenge any inflated charges carriers may try to impose. Accurately classifying freight requires a detailed understanding of product density and handling characteristics, often leading to misclassifications and costly fees. AI can simplify and speed up this process by automatically analyzing shipments based on product descriptions, dimensions, and historical data. Companies like C.H. Robinson are already using AI to classify freight accurately and instantly. This not only helps improve billing accuracy and compliance, but also speeds up the quoting and booking process, reducing overhead and improving overall operational efficiency.

Understanding Returns

As consumers continue to step away from in-store shopping in favor of online purchases, the volume of parcel shipments returned has become more frequent. Claims and exception handling are cost drivers that can be overlooked

in parcel shipping, but AI can help significantly reduce their financial impact. Damaged goods, lost packages, and delayed deliveries all can lead to direct expenses. In most cases, shippers absorb the cost of transportation for returns to maintain customers' satisfaction and stay competitive in the market. AI can be used to identify and track recurring customer issues, such as frequent returns or delivery delays. It can also notice trends for certain shippers, locations, and products. By addressing these issues proactively, shippers can solve the root cause before it becomes a more costly problem. Over time, this could result in fewer claims, lower return rates, and decreased transportation spend.

The Path Forward

While rising parcel costs present a significant challenge, shippers are not without solutions. By adopting the right tools and strategies, businesses can regain control over their shipping expenses even in this high-cost environment. As the shipping landscape continues to evolve, AI will play an increasingly vital role in helping companies streamline operations, reduce costs, and stay competitive.

Jena Cardenti is a Transportation Consultant at Infios, a Körber company, where she partners with clients to model transportation scenarios and analyze agreements.

USPS rates are going up. Your costs don’t have to.

Starting July 13, 2025, the USPS® will increase many rates for both mailing and shipping products. These changes are part of an ongoing trend across the industry — UPS, FedEx, and other major carriers have also raised their rates and surcharges throughout the year. This leaves businesses trying to navigate a more complex and costly shipping and mailing environment. Pitney Bowes can help your business manage costs, simplify processes and give you control over mailing and shipping.

Reduce Certified Mail Costs with Electronic Return Receipt

Certified Mail remains a critical service for businesses needing proof of delivery, but it continues to be a tedious manual process that keeps costing more. Pitney Bowes software simplifies the entire Certified Mail® process. Our software enables you to process, send, and track Certified Mail online, eliminating manual forms and lost green card receipts. By switching from the traditional green card return receipt to an electronic return receipt, businesses can save up to $1.58 per mail piece. Managing signatures and delivery confirmations is easier, faster, and more cost-effective.

USPS Shipping Savings. Automatic.

Pitney Bowes shipping software automatically applies discounts on USPS services like Priority Mail®, Ground Advantage™, and Priority Mail Express®. This means your business gets access to discounted rates with or without an NSA. Our multicarrier platform gives you the flexibility to compare rates and delivery times, so you can easily choose the best rate for you. You can then track every parcel from drop-off to final delivery — all in one place. The savings and convenience make it easier to ship smarter with the USPS.

Discounted Shipping with UPS and FedEx — No New Accounts Needed

In today’s landscape, relying on a single carrier is no longer sustainable. That’s why Pitney Bowes multicarrier software provides access to discounted UPS® and FedEx® rates. Businesses can switch shipping volume to these major carriers

without the hassle of setting up new account numbers. Our shipping software allows you to print labels, compare rates across carriers, and track packages with ease — giving you the power to choose the best carrier for every shipment.

Simplify and Save — All from One Platform

As shipping and mailing costs continue to rise across the board, businesses must become more strategic in their approach. Pitney Bowes is here to help. With solutions that deliver savings on Certified Mail, USPS, UPS, and FedEx, plus powerful tools to simplify the complexities of multicarrier management, we make it easier to take control of your shipping and mailing like never before.

Scan here to get in touch or visit us at pitneybowes.com/ software to learn more.

UNPACKING THE UNKNOWN: HOW TO HANDLE FREQUENT AND VAGUE RATE UPDATES

By Keegan Leisz

Along time ago, parcel shipping rate increases were far more simplistic than they are today. Rate hikes typically occurred during an annual General Rate Increase (GRI) in December or January, with minimal changes in between. Many shippers had contractual rate caps that limited base rate increases to a fixed percentage. Although surcharge increases were usually uncapped and could fluctuate, the underlying logic remained consistent.

Those simpler days are now over. Between March 1 and June 2, 2025, UPS implemented changes on 11 separate days — far from the limited adjustments shippers were used to. Some were straightforward — such as the Overmax fee increasing from $1,325 to $1,775 on June 2. But many others were more complex, such as the introduction of a two percent processing fee on May 19 or adjustments to ZIP Code-to-zone mappings on March 24 and again on June 2.

Unlike traditional rate changes where shippers can compare old and new costs to assess impact, these newer, more nuanced updates require additional analysis to fully understand. Let's explore two specific examples and how shippers can evaluate their implications.

Two Percent Payment Processing Fee: Simple in Appearance, Ambiguous in Practice

At first glance, adding a two percent payment processing fee appears straightforward — just tack two percent onto the total spend. However, the announcement lacked

critical details and introduced significant ambiguity. Shippers should have been asking two key questions:

Is this a new fee or is it replacing an existing fee?

Does this fee apply universally or only under certain conditions?

UPS’s announcement did clarify one point: the new two percent processing fee would replace the existing credit card surcharge. However, no detailed explanation of when the new fee would apply was included in either the announcement or the March 31 update to the UPS service guide.

To fill in the gaps, shippers had to contact their UPS representatives directly. Those who did learned that the two percent processing fee applies to accounts with payment terms of 21 days or longer, or to accounts that are credit-card-enabled — even if no credit card is used for payment.

To calculate the impact, shippers need to:

1. Identify total spend on accounts with 21+ day payment terms or credit card enablement.

2. Multiply that amount by two percent.

3. Subtract any prior spend previously subjected to the credit card surcharge.

By following this process, informed shippers can gain clarity on the precise details of this change, identify the accounts that would be

impacted, and understand the financial impact to their business.

ZIP Code to Zone Mapping: A Hidden Driver of Cost

Unlike a typical GRI or surcharge, the ZIP Code to zone mapping update altered a core component of UPS's rating structure rather than a fixed rate. Specifically, it changed how zones are assigned for origin–destination ZIP Code pairs. Zones affect both base rates and zone-based surcharges, such as the additional handling or large package surcharges.

As with the payment processing fee, UPS did not publicly release the specific ZIP Code changes ahead of implementation. Shippers again had to reach out to their reps for details.

Once the details of the zone changes were obtained, the March 24th updates appeared neutral on the surface. Of all the ZIP Code pairs that had a change in zone, there were roughly the same number that had the zone decrease as there were that had the zone increase.

But a deeper look revealed this was not a balanced shift. Destination ZIP Codes with zone decreases had an average population of approximately 181,000, while destination ZIP Codes with zone increases had an average population of approximately 825,000. This means high-volume, densely populated destinations became more expensive to ship to, while

less trafficked areas became cheaper — a net negative for many shippers.

While understanding how the zones change overlays with the US population is insightful, shippers need to get even more specific and understand how their network fits into the changes. To assess the impact of zone changes, shippers should do the following:

1. Review origin and destination ZIP Code pairs in their network.

2. Identify which pairs changed zones.

3. Analyze shipment volume and applicable surcharge volume per affected pair.

4. Calculate rate and surcharge impact based on the new zone assignments.

Failing to analyze these changes in detail could result in unexpected cost increases, especially for shippers with high-volume lanes into impacted ZIP Codes.

Complexity and Ambiguity Are the New Normal These recent changes underscore a clear shift in how

parcel shipping rates are being implemented and communicated. Carriers are now rolling out frequent, layered, and often opaque changes that can significantly affect shipping costs.

To stay ahead, shippers must take a proactive and analytical approach. As carriers introduce increasingly complex and less transparent changes — whether through new fees, underlying structural changes, or evolving surcharge criteria — shippers must be diligent in tracking, questioning, and analyzing each update. Now more than ever, shippers should be leveraging advanced

analytical tools, internal data analysis, and regular dialogue with carrier reps to protect their bottom line.

Keegan Leisz is a Senior Project Manager in Professional Services at Intelligent Audit. He partners with enterprise shippers to uncover opportunities for logistics optimization, aligning cost reduction with service-level improvement. With a strategic, data-informed approach, Keegan helps clients navigate carrier diversification, performance challenges, and long-term transportation planning to drive meaningful operational gains.

PACKAGING

REVOLUTIONIZING LOGISTICS: VOLUME-OPTIMIZED CORRUGATED PACKAGING SYSTEMS SET TO SOAR BY 2034

By Vidyesh Swar

As businesses worldwide race to achieve more sustainable and cost-effective logistics, volume-optimized corrugated packaging systems are emerging as a game-changer in the packaging industry. With the global market expected to surge by hundreds of millions by 2034, this trend is not just about cardboard; it’s about smarter, greener, and AI-driven packaging that’s reshaping transportation and delivery.

Why

Volume-Optimized

Packaging Is the Future

In a world driven by e-commerce, fast delivery, and sustainability, companies are seeking packaging solutions that reduce waste, minimize shipping costs, and still deliver high protection. That’s where volume-optimized corrugated systems shine. These boxes are designed to fit products more precisely, using less material while maximizing durability, which is an ideal solution for brands looking to reduce environmental impact without sacrificing performance.

Asia Pacific Leads, But North America Is Closing In Asia Pacific dominated the market in 2024, thanks to rapid industrial growth and the booming e-commerce sectors in China, India, and Southeast Asia. But all eyes are now on North America, where rising sustainability initiatives and AI adoption in packaging are expected to drive rapid market expansion in the next decade.

The Power of Smart Materials

Among the materials, linerboard (kraft paper) took the top

spot in 2024. Its strength, recyclability, and high-quality printability make it a favorite across industries. Meanwhile, polypropylene (PP) is gaining ground fast due to its lightweight, rugged nature and use in high-tech sectors like automotive and aerospace.

E-Commerce, Food & Beverage Driving Demand

Unsurprisingly, the food and beverage industry leads the end-use segment, driven by the need for fresh, frozen, and processed food packaging that extends shelf life and withstands long shipping routes.

On the distribution side, B2B channels (wholesalers and distributors) played a dominant role in 2024. However, B2C channels like online retailers and specialty stores are rapidly catching up, pushed forward by the direct-to-customer revolution.

AI: The Unsung Hero of Packaging Innovation

Artificial intelligence is playing a crucial role in the packaging evolution. From real-time customization to minimizing void space and material waste, AI ensures that boxes aren’t just boxes anymore; they’re data-driven, eco-smart solutions. Companies are now adopting on-demand packaging systems that automatically generate the right box for each order, cutting down cost and carbon footprint alike.

Challenges: Price Fluctuations of Raw Materials

One of the biggest hurdles? Unstable prices of raw

materials like wood pulp and kraft paper. These fluctuations impact production costs and create imbalance in supply chains. Still, the long-term gains in sustainability and logistics efficiency keep the momentum going.

A Market Full of Opportunities

The surge of e-commerce, rise of D2C brands, and increasing environmental consciousness among consumers are creating endless opportunities. Businesses that invest in volume-optimized corrugated packaging now stand to gain a long-term edge in cost, sustainability, and consumer trust.

Top Players to Watch

Leading companies such as Corrugated Containers Inc., Cardboard Box Company, Fortuner Paper Product, and Opal are setting the standard. Their innovations in lightweight materials, smart design, and AI integration are reshaping how goods are packed, shipped, and delivered globally.

Final Thoughts

The rise of volume-optimized corrugated packaging systems isn’t just a trend; it’s a strategic shift towards smarter, more sustainable logistics. As more industries from food to electronics adopt this technology, the packaging world is headed for a leaner, greener, and far more efficient future.

Vidyesh Swar is a Senior Research Analyst at Towards Packaging.

REVERSE LOGISTICS

RIGHT TO REPAIR GAINS TRACTION

By Tony Sciarrotta

Reverse logistics typically includes returns, recommerce, recycling, and repair. But what happens if there are roadblocks repairing items in the most economical and sustainable manner?

The Right to Repair movement has gained significant traction over the past few years, driven by growing public concern over sustainability, consumer rights, and corporate control over the products people buy. At its core, the movement demands that consumers and independent repair shops have access to the tools, parts, manuals, and software necessary to fix devices such as smartphones, laptops, appliances, tractors, and even medical and military equipment. Historically, many manufacturers have imposed barriers that make self-repair or third-party repair nearly impossible. These include proprietary screws, software locks, restricted diagnostic tools, and parts that only work after being “paired” with software authorized by the manufacturer. Such practices not only limit consumer choice but also increase electronic waste, fuel higher replacement costs, and weaken small repair businesses.

One of the most compelling reasons behind the Right to Repair movement is environmental sustainability. Manufacturing electronic devices is a resource-intensive process, with up to 85% of a smartphone’s environmental impact occurring during production. Extending the lifespan of electronics by even a single year can significantly reduce carbon emissions and curb the growing crisis of e-waste. This waste is not just a domestic problem; it often ends up in landfills in developing countries, creating toxic hazards. Allowing for more accessible repair options can help mitigate this issue by promoting reuse rather than disposal.

Recent years have seen an uptick in legislative progress at the state and federal levels. In the US, New York led the charge with the Digital Fair Repair Act, which

took effect in July 2023. Minnesota followed with one of the most comprehensive laws, requiring manufacturers to make parts and repair information available for both electronics and home appliances. Oregon made headlines by becoming the first state to ban “parts pairing” starting in 2025, targeting software that prevents devices from accepting non-original components.

Other states have also made notable progress. Colorado passed laws covering agricultural equipment and consumer electronics, while Washington enacted a Right to Repair bill in 2025 that includes a parts-pairing ban and extends to powered wheelchairs. In the auto sector, Massachusetts and Maine passed laws requiring car manufacturers to provide telematics access to independent repair shops, giving consumers more control over vehicle diagnostics and repairs. As of mid-2025, all 50 US states have introduced some form of Right to Repair legislation, with seven enacting laws that cover consumer electronics.

Federal momentum is also building. In 2021, President Biden signed an executive order directing the Federal Trade Commission (FTC) to curb anti-competitive repair restrictions. In response, the FTC began cracking down on companies that violated consumer repair rights. John Deere is currently facing a lawsuit by the US Federal

Trade Commission in which it is accused of forcing farmers to use its authorized dealer network and driving up their costs for parts and repairs.

The US military has also adopted Right to Repair principles, with the Army including repair-friendly clauses in equipment contracts.

Opposition to Right to Repair often centers around concerns over cybersecurity, intellectual property, and safety. Critics argue that opening up access to software and diagnostics could make devices more vulnerable to hacking or compromise proprietary technology. Manufacturers also warn that improper repairs could cause damage or void warranties. However, advocates counter that these concerns can be addressed with smart regulation and do not justify locking consumers out of products they own.

The Right to Repair movement reflects a broader push for transparency, autonomy, and sustainability in an increasingly tech-driven world. While concerns about cybersecurity and intellectual property remain, they can be addressed through balanced regulation that protects both innovation and user rights.

Tony Sciarrotta is Executive Director of the Reverse Logistics Association.

The RLA offers various tools, white-papers, and monthly webinars that provide best practices in managing reverse logistics.

GUEST COLUMN

BECOMING A CARRIER OF CHOICE IN FINAL-MILE DELIVERY

By Arthur Axelrad

Final-mile delivery isn’t just the last step. It’s often the most visible and scrutinized part of the supply chain. As e-commerce continues to surge, today’s final-mile carriers are stretched thin, expected to deliver faster, smarter, and more transparently than ever before.

High-volume shippers are increasingly selective about the carriers they partner with. They’re looking for more than just capacity; they want partners whose operational capabilities support their push towards digital transportation.

Static tracking numbers won’t cut it anymore, either. Shippers expect live status updates, GPS-based tracking, accurate ETAs, and proactive notifications. They’re also looking for visibility into how routes are optimized. It’s not just about cost saving, but to reduce delays, emissions, and service variability. Carriers who can offer this level of transparency and efficiency stand out as strategic partners, not just service providers.

The Data Divide: Legacy Systems vs. Modern Expectations

Even as digital integration becomes standard across the logistics industry, many carriers are still relying on legacy systems or heavily patched platforms. Older technologies often can’t scale or adapt quickly enough to meet modern expectations. As a result, carriers are frequently slow to integrate with shipper platforms, unable to provide accurate real-time data and struggle to keep up with tightening service level agreements (SLAs).

This disconnect creates tension in partnerships. Shippers are being held to higher standards by their customers and need reliable, tech-forward carriers who can help deliver on their promises, not stand in the way.

Performance Matters: SLAs and Accountability

SLAs are no longer just contractual formalities, but performance benchmarks that directly impact carrier selection and retention. Carriers that consistently meet

or exceed these metrics are rewarded with more volume, better rates, and longer-term contracts. Those that do not are often replaced.

Building Trust Through Transparency

In the final mile, trust is built through transparency, both in operations and communication. Carriers that proactively share data, admit to issues, and collaborate on solutions are far more likely to earn shippers’ loyalty.

This transparency extends beyond the shipper-carrier relationship. End customers also expect visibility into their deliveries. Carriers that can provide branded tracking pages, real-time updates, and responsive customer support help shippers enhance their brand reputation and customer satisfaction.

Investing in the Right Technology

Meeting modern shipper expectations requires more than incremental upgrades. It calls for real investment in flexible, scalable technology. Carriers need platforms that support API-based integration at scale, enabling seamless data sharing across systems. Advanced route planning and dispatching tools are equally important, helping improve delivery accuracy and reduce inefficiencies.

Mobile apps that allow drivers to capture real-time data on the road, combined with automated customer notifications, create a smoother experience from pickup to

doorstep. And with analytics dashboards tracking performance across key metrics, carriers can continually refine their operations, standing out from their competitors.

The Human Element: Training and Culture

While technology is essential, it’s only part of the equation. Carriers need to invest in their people, making sure teams are equipped to meet the demands of modern logistics. That starts with training drivers not just on delivery protocols, but on customer service and how to use tools that support real-time communication and visibility. Dispatchers also need access to live data and the training to act on it quickly. Just as important is building a culture that values accountability, responsiveness, and ongoing improvement. Without a workforce that understands and embraces these standards, even the best technology will fall short.

The Path to Becoming a Carrier of Choice

In 2025 and beyond, the final mile will continue to serve as a battleground for customer loyalty, and carriers play a pivotal role. Companies must go beyond basic delivery capabilities and embrace a holistic approach that combines operational excellence, digital integration, and customer-centric service.

Arthur Axelrad is co-founder & CEO, Dispatch Science.

Designed Conveyor Systems (DCS), founded in 1982, is a brand-agnostic systems integrator that provides custom full-scale warehouse designs and software solutions. DCS is based in Franklin, Tennessee, and utilizes consulting, engineering design, project management, installation services, and client support to help our customers deliver on time.

Parcel shippers need DMW&H's material handling solutions to optimize efficiency, reduce operational costs, and enhance scalability. With over six decades of industry expertise, DMW&H offers innovative, end-to-end solutions — from facility analysis to commissioning and 24/7 support. Their customized, forward-thinking approach ensures that each solution is tailored to the unique needs of the client's distribution center, providing a competitive edge in a rapidly evolving market.

www.dmwandh.com | 201.933.7840 | info@dmwandh.com

For 35 Years, Ensign has designed and manufactured custom material handling equipment. Offering the safest and most dynamic high-speed parcel unloaders for the parcel handling industry, our machines easily integrate into new and existing sorting lines and can be designed for any type of transportation containers; gaylords, plastic totes, carts, hampers. Control configurations range from simple manual controls to fully automated including AGV loading integration. Advanced discharging technology automatically modulates the flow of parcels into sorting systems. These systems quickly deliver polybags, boxes, envelopes, and mixed materials onto conveyors, chutes, and tables without causing damage to the contents inside. www.ensignequipment.com

EuroSort specializes in high-speed unit sortation systems designed specifically for the parcel and small-package industry. Our sorters are engineered to handle a wide range of package sizes, shapes, and weights with industryleading accuracy and throughput. Whether you’re processing outbound shipments, returns, or last-mile deliveries, EuroSort’s sorters help reduce labor, increase sortation speed, and optimize floor space. With a compact footprint, low maintenance requirements, and seamless integration, our solutions are ideal for parcel hubs and e-commerce fulfillment centers looking to boost efficiency and stay ahead. EuroSort - Fast. Reliable. Built for Parcel. eurosort.com | sales@eurosort.com |

Hy-Tek Intralogistics delivers end-to-end warehouse automation solutions that optimize parcel fulfillment from the first scan to final delivery. As a trusted systems integrator, we combine strategic consulting, advanced robotics, and our IntraOne™ software platform to drive speed, accuracy, and efficiency across your operation. Whether you're modernizing sortation, scaling capacity, or navigating labor challenges, Hy-Tek engineers and supports tailored solutions that grow with your business. From design and execution to lifecycle service and support, we help you orchestrate success in today’s fast-moving parcel environment. Visit us at Parcel Forum 2025 to explore how we simplify complexity and accelerate performance.

www.hy-tek.com | info@hy-tek.com | 513.351.6500

Paccurate is the packing intelligence platform that transforms fulfillment operations. Unlike legacy systems that focus solely on cubic efficiency, our platform considers materials, labor, and unique carrier rates to find the most cost-effective packing solution for every order. But that's only the beginning. Simulate changes to your box mix before implementation, continuously monitor performance by ranking your operation against industry benchmarks, and further optimize the AMR, ASRS, or On-Demand Packaging solutions in your warehouse. Easy to integrate with minimal IT support, our API-first platform turns packing decisions into a competitive advantage. Ship smarter, save money, reduce waste.

S&H Systems is a trusted material handling systems integrator delivering complete automation solutions for distribution and fulfillment centers. From design to installation, S&H helps optimize parcel handling with customized systems that improve accuracy, throughput, and efficiency. The team partners with top technology providers to deliver tailored solutions based on each facility’s needs. Known for responsive service, experienced project management, and long-term support, S&H Systems helps customers scale operations and meet growing demands. Whether it’s conveyor systems, sortation, or robotics, S&H delivers practical, effective solutions that drive performance in fast-paced logistics and parcel environments.

www.shsystems.com | info@shsystems.com | 870-933-7346

By Chris Schramm

PARCEL AUDITING IN TODAY’S ECONOMY

In an economy marked by inflation, volatile shipping rates, and rising customer expectations, businesses are reexamining every dollar spent, including those tied to logistics. One area that is crucial to an organization’s success is small package or parcel auditing, an increasingly vital service that helps companies reduce shipping costs, recover overcharges, and gain insight into shipping performance.

First, we must define what parcel auditing is referencing. Parcel auditing refers to the process of reviewing and analyzing shipping invoices, primarily from major carriers like UPS, FedEx, and DHL, for accuracy. These audits can reveal billing errors, late deliveries, incorrect surcharges, and service failures. Refunds or credits can then be requested for those mistakes, usually under carrier money-back guarantees or service agreements.

Now we dive into why it matters more today than in the past:

1. Shipping Costs Are Increasing Shipping carriers implement general

rate increases (GRIs) annually, often around five to seven percent, and add or expand surcharges, including fuel and residential delivery fees. For businesses that ship hundreds or thousands of packages each month, these charges can add up quickly.

Parcel auditing helps companies ensure they’re not overpaying or getting hit with unnecessary fees.

2. E-commerce Growth Boosts Volume

With the explosion of e-commerce, even small and mid-sized businesses are handling more shipments than ever. More volume means more complexity and a higher likelihood of billing errors. For example, a package misclassified by weight or zone could incur a much higher fee. Multiply that by thousands of shipments, and it becomes a significant cost center.

3. Cash Flow Is King

In today’s economy, managing cash flow is essential. Auditing can help recover one to five percent of the total shipping spend annually — money that can go directly back into the bottom line!

Refunds for late deliveries alone can yield substantial savings when claimed consistently. Some common errors that are caught by auditing are:

Late deliveries – If a package misses its guaranteed delivery time, a refund is typically available.

Incorrect surcharges – Fees for Saturday delivery, address corrections, or residential delivery may be charged in error.

Duplicate charges – The same shipment might be billed twice due to system glitches.

Incorrect service level – If you paid for two-day air but it was shipped ground, you’re entitled to a refund.

Dimensional weight miscalculations – Carriers use dimensional weight pricing, and incorrect measurements can lead to higher charges.

Beneficiaries include e-commerce retailers, who benefit significantly from recovering even minimal amounts per shipment due to their narrow profit margins. Subscription-based companies also gain from regular shipments that

provide recurring opportunities for auditing and cost savings. Additionally, manufacturers and distributors benefit from business-to-business shipments, which often involve larger or irregular packages, increasing the likelihood of errors.

There are two main methods of auditing:

1. Manual Auditing: High labor costs, generally only feasible for very small volumes. Staff review invoices against expected rates and delivery performance, invoice by invoice.

2. Automated Auditing

Services:

Third-party companies use software tools that connect directly to your carrier accounts. They continuously scan shipping data, flag anomalies, and often file refund claims automatically. Many work on a contingency fee basis, meaning they only get paid a percentage of the savings they recover for you. Beyond refunds, auditing platforms provide valuable insights and opportunities for optimization. Many offer analytics

dashboards that allow businesses to evaluate carrier performance, including on-time delivery rates and claim resolution times. They also help track cost trends by service level or zone, identify chances to shift volume to more cost-effective transportation modes, and improve packaging strategies to reduce expenses and emissions impact. These data-driven insights are instrumental in enhancing decision-making across supply chain, finance, and customer service departments.

While the benefits of auditing are significant, several challenges must be considered. Carrier contracts may limit refund eligibility, particularly when service guarantees are waived or volume-based pricing is applied. Data access and integration can pose issues, especially for companies relying on multiple systems or working with international carriers. Additionally, overdependence on automation without human oversight may lead to missed context-specific decisions, such as opting not to pursue a refund to maintain a

positive relationship with the carrier.

So, what does all this mean? Small package auditing is no longer a niche; it’s a strategic imperative for businesses navigating tight margins and increasing competition. It transforms shipping from a hidden secret only the experts can navigate into a transparent, optimized operation. Whether managed internally or through specialized partners, parcel auditing offers a rare opportunity to reduce costs without reducing service. In today’s economy, that’s a win every business should pursue.

As Director of Solutions, Nexterus, Chris Schramm is tasked with managing the company’s carrier relations, pricing negotiations, systems maintenance, analytics, and optimization functions, along with overseeing the strategic account management department handling client relations and strategic project initiatives. He also oversees the warehousing and transactional transportation units, as well as the professional services Supply Chain Design division.

By Helaine Rich

THE BIG THREE? HOW THE USPS COULD BECOME AS MUCH OF A PLAYER AS UPS AND FEDEX

The United States Postal Service has endured challenges that would derail most organizations.

Within the last few months, the Postmaster General stepped down, 10,000 jobs were cut in the name of government efficiency, and calls to pursue privatization have grown louder.

While USPS continues to handle more items than either UPS or FedEx and reaches every address in America six days a week, it struggles with a fundamental perception problem: Businesses and consumers don’t think of USPS when they need fast, tracked, controllable shipping.

The appointment of FedEx board member David Steiner as the new Postmaster General signals that USPS leadership recognizes these competitive gaps. With improvements to operations, technology, and service offerings, the Postal Service could evolve from a budget shipping option into a comprehensive logistics partner that challenges private carriers on its own terms.

The path forward requires USPS to address fundamental weaknesses while leveraging advantages that neither UPS nor FedEx can match. Here’s how it could make the leap.

Reinventing Brand Perception and Service Offerings

USPS needs a rebrand. Consumers see

it as a slow, cheap option rather than a serious alternative for time-sensitive shipments. Changing this perception requires operational improvements and strategic positioning that highlights unique advantages.

The Postal Service’s exclusive access to residential mailboxes is a significant competitive edge that remains underutilized. While competitors must leave packages at doors or attempt redelivery, USPS can place small packages directly in secure mailboxes — a valuable advantage, as 58 million Americans were victims of package theft last year. USPS should aggressively market this mailbox exclusivity, particularly for high-value small items.

USPS's massive retail footprint — 31,123 offices compared to UPS’s 5,700 and FedEx’s 5,000 — provides unmatched convenience. This network advantage should be central to its competitive positioning.

Weekend delivery is another opportunity. While USPS offers Saturday delivery at no extra charge, FedEx delivers to 98% of the US population on Saturdays and nearly two-thirds on Sundays. USPS could build on recent pilots like Priority Mail Next Day — a regional, contract-only overnight service — by expanding Sunday delivery beyond Priority Mail Express and Amazon packages. These steps would move it closer to a true seven-day service that rivals private carriers.

Rethinking Rural Delivery Strategy

USPS’s universal service obligation serves as both its greatest strength and biggest competitive weakness. While UPS and FedEx cherry-pick profitable urban routes, USPS must serve every address in America, including remote areas that drain resources and limit operational efficiency.

This obligation has historically been viewed as untouchable, but previous conversations about changing rural delivery frequency reveal that flexibility exists. USPS could implement tiered service levels, maintaining daily delivery in urban areas where they compete directly with private carriers while shifting to alternate-day delivery in remote areas where they remain the only viable option.

This approach would free up resources to invest in competitive urban services while still fulfilling the postal mission. The key is framing this as optimization rather than reduction — using freed resources to compete more aggressively where it matters most.

Upgrading Visibility Systems

Perhaps no single factor damages USPS’s competitive position more than inconsistent package tracking. While competitors provide near-real-time visibility with incremental updates — like the driver entering the recipient’s area, precise delivery windows, and detailed scan events — USPS tracking often goes dark for extended periods, leaving customers guessing about package status.

When parcels go dark, the technology gap becomes a competitive disadvantage. UPS and FedEx customers expect comprehensive package tracking that follows shipments every step of the way. USPS needs better technology infrastructure to match these expectations. Every touch point in the postal network must generate trackable events, and those events must flow seamlessly to customers through user-friendly interfaces.

The investment would be substantial, but the competitive benefit would be immediate. Businesses that currently avoid USPS due to tracking concerns would reconsider if the Postal Service could match UPS and FedEx visibility standards.

Getting an answer when problems occur remains a challenge with USPS.

While UPS and FedEx maintain accessible call centers with knowledgeable representatives, USPS customer support simply isn’t up to par. When tracking fails, customers need immediate answers, something USPS still struggles to provide.

Improving support extends beyond individual customer satisfaction.

Business customers who know they can get quick answers when problems arise are more likely to trust USPS with important shipments, gradually shifting the perception that the Postal Service is suitable only for non-critical packages.

Expanding International Competitiveness

International shipping is a significant growth opportunity where USPS currently underperforms. The ePacket service illustrates this problem: USPS sets customer expectations at just 80% delivery confirmation for international packages — a performance level

that would be unacceptable for UPS or FedEx.

Once packages leave the United States, USPS visibility depends entirely on foreign postal services, many of which provide minimal tracking updates. UPS and FedEx maintain control over their international networks, providing consistent visibility regardless of destination.

The dependency on commercial aircraft also creates a vulnerability that private carriers don’t face. When the pandemic disrupted commercial aviation, USPS international packages sat in backlogs while FedEx and UPS maintained service using their own aircraft fleets. While FedEx has a fleet of 698 aircraft and UPS owns or operates more than 500, USPS relies entirely on commercial carriers.

USPS could address these limitations through enhanced partnerships with international carriers and strategic investments in air capacity for key routes. The goal should be closing the

service gap that currently makes USPS unsuitable for time-sensitive international shipments.

Reconstructing USPS into a true competitor requires acknowledging that the agency cannot simply offer cheaper versions of UPS and FedEx services. It must identify where its unique advantages create genuine value for customers and build competitive offerings around those strengths.

The transformation would offer more options, better service, and genuine competition for shippers in markets currently dominated by private carriers. For USPS, it’s the difference between gradual decline and sustainable growth. With competitive pressure mounting and new leadership imminent, this may be USPS's best opportunity to join UPS and FedEx as a true logistics leader.

Helaine Rich is Vice President of Strategic Sales & Administration at ePost Global.

TO AUTOMATE OR NOT TO AUTOMATE: THAT IS THE QUESTION

By Nate Rosier

Consumer fulfillment has changed significantly over the last decade. SKU proliferation is rampant in consumer-based industries, with the majority of profits coming from less than one-third of the SKUs. The current state of warehousing has been ushered in by a few key contributors: Rising e-commerce sales, warehouse costs, and labor costs.

Retail e-commerce sales have risen from $3.3 trillion in 2019 to $7.3 trillion in 2025.

The cost of renting a facility is increasing. In 2023, rent prices per square foot were $9.72 USD for warehousing and distribution, $9 USD for manufacturing, and $16.38 USD for flex/service spaces.

Wage rates are up. The average annual distribution center salary increased by 12.5% between 2021and 2024.

Automation is the number one investment that most distribution and supply chain organizations are considering in the face of these circumstances.

What Is Warehouse Automation?

Warehouse automation falls into four categories:

Goods to Person: A robot brings products directly to a worker at a designated picking or packing station, either in a tote or on a shelf.

Person to Goods: Workers collaborate with autonomous mobile robots (AMRs), either following the robot, being followed by the robot, or fulfilling orders completely independently from the robot.

Robots to Goods: Fully autonomous robots use end of arm tools to complete picks without human involvement.

Goods to Robot: Mobile robots deliver

products to fixed robotic workstations for processing.

Real-World Example of Automation in the Warehouse

A shining example of automation providing tangible benefits to a warehouse is evident with this 700,000 square foot distribution center (DC).

This facility checked several boxes indicating it would benefit from automation. The large DC handled a wide variety of items, from apparel to hard goods and footwear. The company was highly seasonal and had a competitive, high-volume peak season during which the facility faced fierce competition for quality labor in its area.

The facility’s operations were lightly automated with conveyors and pick lines, but the processes were laden with small items and high labor-intensity. One line used an old school tilt tray

that operated slowly and was difficult to handle, creating a bottleneck that led to capacity issues. This process was the perfect fit for automation.

A pocket sorter and pick engine shuttle replaced the tilt tray for a more efficient put to store process. These new automated systems could hold twice the number of SKUs that the tilt tray held, drastically increasing pick rates in the warehouse.

While increased throughput is a key benefit of automation, a lesser-known benefit is how automation can free up space in the warehouse. At a time when available warehouse space is both low in supply and high in cost, any extra space is invaluable. This system freed up 50,000 square feet of space.

To Automate or Not to Automate

As with every innovation, automation isn’t always the answer. When completing a warehouse optimization project, I’m often helping answer the question, “to automate or not to automate?” Some facilities are more obvious candidates for automation, while others may get more value out of Lean methodologies, an updated facility layout, or improved labor standards.

Almost every warehouse could benefit from some measure of automation, even if it’s just a barcode scanning system for inventory tracking. The ultimate decision comes down to where automation will serve the most value at the best cost.

Certain functions like picking, packing, and palletizing are most improved by automation, so that can be a good place to start when deciding what to automate in your facility.

Approaching automation as a strategic investment is the best way to get the most value from it. When considering an area of your facility for automation, think about how much return on investment (ROI) you can expect it to provide year-over-year.

Consider these factors when determining where automation would fit best in your facility:

1. Complex and labor-intensive picking, packing, or put away processes

could benefit from automation.

2. The higher your SKU assortment, the more you will benefit from automation. Facilities with more than 10,000 SKUs should consider a Goods to Person system.

3. Focus on low investment/high productivity systems to get the most ROI for the least cost.

4. Modular systems are great for beginners and can be added to over time.

5. Automating processes with high travel time can reduce labor costs.

6. The higher your warehouse density, the more you will benefit from automation.

Still debating whether to automate or not? Start by building a stronger workforce first. Join enVista’s Bo Thomson at PARCEL Forum ’25 Chicago to turn your DC team into industrial athletes and crush labor challenges head-on!

7. Goods to Person systems can be particularly valuable for slow moving picking and packing areas.

8. Person to Goods systems are great for larger facilities with several zones and high SKU variety.

9. Robot to Goods systems work well with lower volume items like automotive and food manufacturing.

10. Goods to Robot systems are valuable for put-to-store and can handle larger quantities across a variety of orders.

Creating Your System Justification

The previously mentioned facility had a clear justification for its automation based on the expected return on investment. The company invested $47M into the new automation and saw 10-year NET savings of $235M. This level of ROI further underscores the importance of looking past the initial price tag to see automation as a strategic, long-term investment.

To get executive support for your automation project, you will need strong proof of economic payback and return on investment. Follow these steps to create your own system justification:

Run the math. Automation is not for everyone. But, if correctly designed with the appropriate flexibility, it can transform operations.

Pick an integration partner. Deciding on automation is just half the battle. A lot can go wrong during the implementation phase. For a well-rounded implementation, choose a partner that can integrate across all aspects of your facility, not just automation.

Update your labor model. Automation doesn’t eliminate human labor, but it does change it. An automated facility will require a different type of worker, one that is more strategic. You will likely have fewer associates in an automated facility, but they will also likely be paid more.

Invest in post-go-live support and maintenance. Don’t make the mistake of neglecting your new system once it’s in place. Your integration partner should also be able to support your system after it goes live.

The key takeaway here is that automation doesn’t work in a vacuum. Automation is at its best when it is justified within the scope of the entire warehouse, considering all relevant people, processes, and technology for a unified approach.

Nate Rosier is SVP of Consulting, enVista.

STAY IN THE KNOW: QUESTIONS TO ASK WHEN CONSIDERING OUTSOURCING FULFILLMENT SERVICES

By Michelle Keske

There is a lot to think about when considering working with a fulfillment partner. It’s a big step, and outsourcing is not for every company. Below are some questions to ask yourself to help determine if outsourcing your fulfillment needs is the direction to go.

What Would Be My Goals for Outsourcing?

Outsourcing can serve many purposes, and understanding why you're considering it is one of the most important steps in making the decision to outsource or not. Brands often seek outsourcing solutions to reduce costs, which is one of the most common drivers. Others outsource because they want their inventory in one location with a single provider that can handle all sales channels. Some businesses simply don’t want to build a staff to run their own facility, and instead, want to save time and reduce risk by outsourcing.

Once you determine your primary goal for outsourcing, you need to do some detailed research because not all 3PLs are created equal. Some operate under a one-size-fits-all model, which doesn't work for every brand. For example, a growing brand may need support entering major retailers, while also managing website fulfillment and drop shipping capabilities. Each of these functions requires different levels of expertise and infrastructure.

After narrowing down some options, ask yourself if you want a partner who simply handles getting product from point A to point B, or one that is a true strategic partner — one that will collaborate with you regularly to solve problems and support your business growth.

Would Partnering with a Fulfillment Partner Help My Core Business to Support Growth/ Scalability?

Partnering with a fulfillment company can be a powerful way to support and strengthen your strategic initiatives. Rather than spending time and resources managing labor, facilities, or investing in additional equipment, a 3PL absorbs those operational costs by spreading them across their broader customer base. This allows you to leverage expert support without taking on the overhead yourself.

Beyond cost savings, outsourcing fulfillment frees up your time and capital — giving you the space to focus on what matters most: enhancing your product, growing your brand, and expanding your market reach.

The financial benefits and saving you time can be enormously impactful for your business, but only if you are truly committed to using that capital and added extra time to better focus on growth and scalability. For that to happen, you need a clear strategic plan that is supported by other executives and followed diligently. You should map out a five-year plan of goals and meet on a regular basis to review them. In addition, you should have business growth KPIs in place to measure success.

Is My Inventory Data Clean Enough?

Many companies underestimate the importance of having clean, accurate data — especially when preparing to outsource fulfillment. This includes detailed shipping information, clear SKU and quantity records, and accurate financials like P&Ls. Clean data allows a 3PL to provide you with a more accurate and transparent cost structure, helping you better understand your true costs going into the partnership.

This is especially critical for industries like pharmaceuticals, where compliance with FDA and ISO guidelines is non-negotiable. Accurate data ensures lot numbers and expiration dates are properly recorded, and that batches are never mixed within cartons — helping to maintain product integrity and avoid costly errors. Capturing this information correctly also supports traceability and quality control, which are vital in regulated industries.

Even if your data isn’t perfect, that’s okay. A strong 3PL partner will help clean and organize your information during onboarding. In some cases, your partner may advise that certain inventory can’t be transferred to a new facility if it can’t be properly tracked. That’s why it’s essential to begin capturing and maintaining this data now — so that every item, from batch to expiration date, is accounted for.

With this foundation in place, you’ll be better equipped to track true costs per order or per item, reduce risk, and build a more compliant and efficient fulfillment operation.

If you’re data isn’t clean, it’s best to fix it before outsourcing.

What Is My Cost Per Order?

Understanding your true cost per order is essential — regardless of your industry. Whether you're in pharmaceuticals, supplements, retail, pet, or health and beauty, you need to know exactly what it costs to create your product, sell it, and deliver it into your customers’ hands.

By getting that information to your 3PL partner, they can then provide you with detailed insights into the costs associated with every step of the process, from storage and picking to packing and shipping. This includes visibility into what it truly costs to get your product on a shelf at a big box retailer or delivered to a consumer's doorstep. With that level of transparency, you’re empowered to make more informed business decisions.

When you understand your fulfillment costs down to the item level, it opens the door to smarter marketing and pricing strategies. You can explore the impact of coupons, loyalty programs, or free shipping thresholds — like encouraging a “buy three, get free shipping” model — to increase average order value while still protecting your margins. Ultimately, knowing your cost per order helps you drive profitability, optimize promotions, and build a more sustainable business model.

If you don’t have that infrastructure and tech requirements in place, you may not be ready to outsource

your fulfillment needs.

Do I Have the Right Tech Requirements for Automation?

Something that’s super important in today’s world is automation. The goal is to remove as much human error as possible — and that starts with making sure all your systems are connected. That means your website (like Shopify, WooCommerce, or BigCommerce), your ERP system (like NetSuite, Acumatica, or even a custom setup), your accounting software (like QuickBooks or Xero) — all of that needs to be able to talk to the 3PL’s WMS (warehouse management system).

Whether you're working off a basic spreadsheet, a homegrown tool, or a fully integrated ERP, having that infrastructure in place is a game changer. It allows for things like automatic billing, real-time inventory updates, shipping status, and clean reporting — all of which help you stay on top of your operations without needing to manually chase down data.

If you don’t have that infrastructure and tech requirements in place, you may not be ready to outsource your fulfillment needs. Determining if you want to outsource to a fulfillment partner or not takes time to figure out, and includes a healthy amount of research. It may be time for you to outsource. It may not be. By asking yourself the questions above, you’ll be in the best position to make the right call for your business.

Michelle Keske is president of Diamond Fulfillment Solutions, a scalable fulfillment partner for emerging and established brands in a variety of industries. Diamond offers customizable services, including order fulfillment, kitting and assembly, freight transportation, subscription box fulfillment, and print-on-demand services. Diamond has highest levels of excellence in warehousing standards, including ISO, HIPPA, Rx Licenses, and FDA compliances.

By Jeff Haushalter

INVENTORY HEALTH: A CHECKLIST FOR WAREHOUSING EFFICIENCY

In the fast-moving world of parcel shipping, inventory is the backbone of operational efficiency. Whether you are shipping directly to consumers or fulfilling B2B orders, how you manage, track, and store inventory directly impacts your growth and profitability.

Many warehouses unknowingly harbor inventory inefficiencies that drive up costs, slow down fulfillment, and increase errors. Inventory health checkups reveal these hidden weaknesses and set your warehouse on a path to higher accuracy, efficiency, and cost savings.

We have grouped key inventory management principles into three main areas: Analytics & Control, Storage Optimization, and Operational Efficiency. Each area provides actionable steps to enhance inventory performance and maximize warehouse throughput.

Analytics & Control: Leveraging Technology and Meeting Standards

A warehouse is only as good as the processes driving its decisions. If you are not leveraging inventory analytics, you are missing out on improvement opportunities. Ensure your warehouse management system provides real-time dashboard reporting on fill rates, inventory turnover, days’ worth, building utilization, damage, and shrinkage rates. The more visibility you have into inventory movement, the easier it is to make proactive, data-driven adjustments.

Errors in order fulfillment not only hurt customer satisfaction but also drive up costs through returns and reshipments. Conduct a root cause analysis of mispicks, wrong shipments, or labeling errors. Are employees following standard operating procedures? Are scanning systems functioning correctly? Cross-check inventory and shipping accuracy by implementing a double-scan verification process before parcels leave the warehouse. Warehouses handling regulated goods — such as food, pharmaceuticals, or hazardous materials — must comply with specific storage and tracking requirements. Conduct a compliance audit to ensure proper labeling, temperature control, and documentation procedures are in place. Non-compliance leads to costly fines, product recalls, or even legal liability. Consider

automated compliance tracking software to simplify regulatory adherence and documentation.

Finally, the best way to measure inventory efficiency is by comparing your metrics against industry benchmarks. Review industry-specific KPIs, such as inventory carrying costs, fill rates, and procurement cycle time. Regularly assess your performance against competitors or industry best practices to stay ahead of inefficiencies. Engaging with third-party logistics consultants provides additional insights into where your operations stand in comparison to top-performing inventory performers.

Storage

Optimization: Maximizing Space and

Reducing Waste

Start by assessing how your inventory is physically stored. Are high-demand SKUs positioned for easy access? Are slower-moving items taking up prime real estate? Aisle congestion, inefficient slotting, and outdated shelving systems contribute to wasted space and lost productivity.

A quick slotting analysis determines if items are stored in the most efficient locations based on frequency of retrieval, item characteristics, and seasonal trends. Improvements are usually realized by adopting a zone storage system that separates fast movers from slow movers and reduces unnecessary walking time. If your budget allows, consider investing in adjustable storage solutions, such as dynamic shelving, to accommodate changing product sizes and order volumes.

Stale inventory ties up valuable storage space and working capital. Review your inventory turnover goals and flag SKUs that have not moved in six months or longer. Implement a dead stock liquidation strategy — discount aging items, bundle them with faster sellers, or explore alternative sales channels.

A first-in, first-out (FIFO) or first-expired, first-out (FEFO) inventory flow helps prevent stockpiling of unsellable items, particularly in industries with perishable or seasonal goods. Additionally, working with predictive analytics tools help prevent future over-purchasing and reduce the chances of accumulating dead stock.

Damaged goods are a hidden drain on profit margins. If your warehouse sees frequent product damage, investigate packaging, handling, and shelving conditions. Improperly stored

items are prone to falls, impact, stacking compression, or environmental exposure.

Label racks' weight limits and conduct regular safety inspections. Audit warehouse staff on proper material handling techniques. Implement quality control checkpoints before items leave storage to catch damage early.

Lastly, if loss due to theft or misplacement is a recurring issue, consider security enhancements such as video monitoring, access controls, or serialized inventory tracking.

Operational Efficiency: Enhancing Productivity and Accuracy

No inventory system is perfect, but discrepancies between recorded and actual stock levels lead to costly backorders, mispicks, and delayed shipments. Conduct daily cycle counts instead of relying solely on annual physical inventory checks. Best-in-class warehouses use perpetual inventory systems that automatically update counts with every transaction.

If your discrepancies exceed two percent of total stock, it is time to tighten inventory control measures. Consider barcode scanning, RFID tracking, or warehouse management system (WMS) upgrades to enhance accuracy. Additionally, training staff on best practices for inventory counting and receiving helps reduce human errors.

Lastly, are stockouts causing delays, or are you over-ordering and creating excess inventory? Your vendor relationships and restocking strategies play a crucial role in inventory management. Also identify where items are ordered in combinations (like pails and lids) and maintain similar days’ supply.

Suppliers can also be a source of inventory opportunities. Conduct a supplier performance audit to track lead times, order accuracy, and delivery consistency. Adopt a just-in-time (JIT) inventory approach to minimize overstocking while ensuring key products remain available. Remember that reducing lead times leads to more responsive inventory.

A WMS or ERP can automate ordering processes based on real-time demand trends, reducing human error and over-purchasing. Additionally, developing backup suppliers for key SKUs helps prevent disruptions when primary vendors experience delays.

Conclusion

Inventory management requires constant attention and refinement. By conducting a comprehensive inventory checkup, you uncover inefficiencies, improve storage strategies, and enhance overall operational efficiency.

Whether you implement small changes — such as repositioning high-volume items — or selling off dead inventory, every improvement translates into cost savings and faster fulfillment. Take control of your inventory today and turn your warehouse into a high-performing, optimized fulfillment center.

Jeff Haushalter is a Partner at Chicago Consulting where he focuses on decreasing costs and improving service via warehouse operations, parcel spend management, and optimal packaging practices, among others. He can be reached at jeff@chicago-consulting.com

Winning Gen Z Hearts, Minds, and Wallets: Using Delivery Personas to Master Last-Mile Performance

By Johannes Panzer

Now that the e-commerce growth explosion of the pandemic years has calmed down, online retailers are tasked with acquiring and retaining customers in the face of unpredictable tariffs, rising prices, and supply chain disruptions. Logistics providers and carriers delivering e-commerce packages across the country face similar challenges, forced to contend with significant cost increases linked to fuel, utilities, and wage hikes over the past few years, coupled with the continuing challenge of recruiting and retaining drivers amidst ongoing labor shortages.

With cooling consumer demand further complicating revenue growth strategies, both the e-commerce buying and home delivery experiences have become critical drivers of brand loyalty, customer retention, and profitability. While it's no surprise that consumers are seeking a hassle-free e-commerce experience, especially when it comes to home delivery, retailers continue to come up short on last-mile performance.

Dropping the Delivery Ball

While small improvements in home delivery performance have been made over the past few years, e-commerce retailers and their chosen delivery companies (e.g., carriers, couriers, logistics providers) are not reflecting the quality of delivery experience consumers are demanding. According to a 2025 study investigating e-commerce buying behavior, a substantial 66% of consumers experienced delivery issues within the last three months, rising to a shocking 79% of 18-to-35-year-olds (under 35s).

Dropping the ball on the delivery component of the e-commerce journey is a worrying trend for retailers relying on younger consumers to drive sales. Given that under 35s are currently the biggest contributor to online growth — 44% made online purchases at least every two weeks, up from 33% in 2024, and 43% increased their online purchases year-over-year, compared to 32% of over 65s — retailers need to step up their delivery game with help from technology to protect their bottom line.

Gen Z Takes No Prisoners

Improving the delivery experience for younger consumers is crucial for brand loyalty and retention efforts because,

in addition to offering the greatest customer lifetime value (CLV) to retailers, this demographic has a reputation for possessing high delivery expectations alongside a low tolerance for mistakes, and they’re not shy about expressing their dissatisfaction.

In a 2025 e-commerce home delivery survey, under-35 consumers reported a higher percentage of negative experiences than overall respondents for each delivery problem cited in the survey, including late, damaged, and missing parcels; inflexible delivery slots; issues with customer service; and lack of accountability from the retailer and delivery company. And how did this younger demographic react to these negative delivery experiences? Unsurprisingly, not favorably.

While poor delivery experiences had a direct impact on the perception and future behavior of two-thirds of all consumers surveyed, younger shoppers were even more likely to act in response to issues with home delivery. In fact, 79% of under 35s responded, compared to just 45% of over 65s; some lost trust in the retailer and/or delivery company or did not order from the retailer again, while some disillusioned consumers used word-of-mouth and social media to convey their dissatisfaction. Plus, in a direct blow to retailers’ bottom lines, a significant 21% of under 35s indicated they reduced overall online spend as a result.

Moving Beyond One-Size-Fits-All Delivery

With Gen Z and younger Millennial consumers actively turning away from both retailers and delivery companies in response to a negative home delivery experience, how are brands responding? In the same vein as retailers using buyer personas to inform sales and marketing strategies, savvy e-commerce leaders are taking advantage of delivery personas to create different technology-enabled delivery experiences for customers based on their home delivery preferences.

Delivery personas encompass a combination of consumers’ last-mile preferences, including cost, speed, precision, value-added services, and sustainability factors. A recent study examining home delivery preferences found that 60% of under 35s feel speed is less important, instead prioritizing lowest cost (28%), a precise delivery window (18%), or the most environmentally-friendly (14%) delivery option.

Conversely, 22% are looking for fast and precise deliveries, irrespective of cost, and 18% prefer the fastest delivery possible, with timeliness/convenience being less important. Creating delivery personas that reflect this range of consumer delivery expectations helps retailers provide customers with delivery options at the point of sale based on their preferences.

Delivery Personas in Action

Consider the sustainability persona, a delivery persona highly applicable to the needs and expectations of a younger generation of consumers concerned about the health of the planet. Customers characterized by the sustainability persona are looking to reduce their environmental footprint in their daily life, including how they purchase and receive goods.

They value companies that have adopted sustainable delivery practices, such as carbon-neutral vehicles, combining multiple orders into a single delivery at the end of the week, or green delivery slots that group deliveries within a geographical area to reduce miles travelled, fuel consumption, and emissions. The bottom line is that these consumers want a choice of delivery options that reflect their eco-conscious values. By keeping the sustainability persona in mind when deciding which delivery options to present to consumers, retailers can use technology to tailor offerings and create the kind of delivery experience younger consumers want. While only nine percent of all consumers consider a lack of eco-friendly deliveries as a barrier to future online purchases, under-35 consumers remain

committed to sustainable options. In fact, 40% of under 35s indicated interest in receiving an environmentally-friendly delivery option, compared to just 23% of over 65s.

Keeping Gen Z on Side

In light of higher customer acquisition costs associated with slowing e-commerce growth, companies can’t afford to lose customers and suffer reputational damage due to bad delivery experiences or endure profit erosion associated with repeat deliveries, damaged products, or returns. And given how valuable Gen Z and younger Millennial buyers are to online retailers — and how vocal and proactive they are about negative delivery experiences — creating the optimal delivery experience is a high priority.

The current disconnect between younger consumers’ online purchasing behavior and their delivery experiences should spur e-commerce leaders to re-evaluate their last-mile delivery strategy and the technology that can help support it. By taking advantage of delivery personas to better align delivery options with consumer sentiment, retailers can improve the quality of the delivery experience in line with younger consumers’ values and preferences, helping to foster brand loyalty, boost retention efforts, and capitalize on the potential CLV of this demographic.

Johannes Panzer is Head of Marketing - Global Ecommerce at Descartes Systems Group.

A Look Back Throughout the Years

By Amanda Armendariz

The United States Postal Service, a cornerstone of American communication, has certainly evolved from its inception in the 1700s. Indeed, the founders would probably consider the organization almost unrecognizable today.

Pre-American revolution, the postal system in the colonies was rudimentary, at best. Correspondence within the New World was transported by whomever could be found to deliver the piece. However, most correspondence took place between the colonists and their loved ones back in England, and the first official notice of a postal service in the colonies appeared in 1633. In 1639, Richard Fairbanks’ tavern in Boston was designated by the General Court of Massachusetts as the official site of mail delivery going to or coming from overseas.

These early communication channels were painfully slow. In this current environment of two-day (sometimes same-day!) delivery from companies like Amazon, the glacial pace at which mail pieces were delivered almost four centuries ago seems unfathomable.

A Unified Service

With the birth of the United States of America, the need for a more reliable postal service became clear. In 1775, Benjamin Franklin was appointed the first Postmaster General by the Continental Congress.

Franklin brought substantial prior experience to the PMG position. In 1737, he became postmaster of Philadelphia after Andrew Bradford, who had previously held the title, was removed from his post by the British government after not filing his finan-

cial reports for three years in a row. While the salary wasn’t large (postmasters worked on commission, keeping 10% of the postage they collected from customers), Franklin earned the respect of the British government with his extensive bookkeeping skills, and he was appointed comptroller of the entire American colonial system. In this position, he kept track of the finances for 13 American post office stretching over a distance of 1,500 miles.

According to Neither Snow Nor Rain: A History of the United States Postal Service by Devin Leonard, Franklin’s time as postmaster of Philadelphia greatly influenced his vision of the future of the colonies. “He began to think of the colonies not as individual provinces but as parts of a potential nation bound together by shared institutions like the Post Office,” Leonard states. Hence, when Franklin became joint postmaster general of the colonies in 1753 (a position he held until 1774), he insisted there be properly surveyed and marked routes from Maine to Florida (the origins of Route 1), overnight postal travel between the critical cities of New York and Philadelphia be instituted, and a standardized rate chart based upon distance and weight created.

After the US Constitution was ratified in 1788, the postal network only continued to grow. In 1792, President George Washington signed the Postal Service Act, which officially established the United States Post Office Department as a government-run entity. This legislation was the foundation for a national mail system, and it formally created the office of the Postmaster General, with the responsibility for overseeing the distribution of mail across the entire country.

As America Grows, So Does the Postal System

It may seem strange to us, who have all grown up with the mail carrier being a familiar sight in our residential and business areas on a daily basis, but it wasn’t until the late 19th century that free home delivery of mail was introduced (first in cities, then in rural areas).

Prior to 1863, postage only paid for the delivery of mail from Post Office to Post Office. Citizens usually picked up their mail themselves, although post offices in some cities gave recipients the option to pay an extra one- or two-cent fee for letter delivery or use private delivery firms. In 1862, PMG Montgomery Blaire suggested free delivery of mail by salaried letter carriers, which he felt would “greatly accelerate deliveries, and promote the public convenience.” His thought process was that if utilizing the postal system was more convenient, more people would use it more frequently. He bolstered his argument by pointing to increasing postal revenues in England, which already had adopted free city delivery.

Subsequently, an Act of Congress of March 3, 1863, effective July 1, 1863, “provided that free city delivery be established at Post Offices where income from local postage was more than sufficient to pay all expenses of the service,” according to the USPS’s Postal Facts page.

As the American population and economy grew, so did the number of mail pieces entering the mail stream on a daily basis, and new technology allowed pieces to reach their destinations more quickly. On May 15, 1918, for example, the Post Office Department began airmail service between New York and Washington, D.C., via Philadelphia — the nation’s first regularly

Clerks sorting mail at the James A. Farley General Post Office. How far we have come!

scheduled airmail route. This service was originally staffed by Army pilots, but on August 12 of that year, the Post Office Department took over all phases of airmail service, using newly hired civilian pilots. Two years later, a transcontinental airmail route was completed, linking New York with San Francisco.

In 1970, the Postal Reorganization Act abolished the then-US Post Office Department, which was a part of the Cabinet, and created the United States Postal Service, a “corporation-like independent agency authorized by the government as an official service for the delivery of mail in the United States.”

And let’s not overlook the packages. As Kathleen J. Siviter wrote in an article for our sister publication, Mailing Systems Technology: “Parcel Post was first introduced in 1913. Before that time, six private delivery companies delivered most of America’s packages, with each serving a different geography. Once the USPS was allowed to carry packages, the volumes grew and grew, particularly when fueled by the growth in e-commerce and during the pandemic. The package delivery market has always been rife with competition, and in the 2007 Postal Accountability and Enhancement Act (PAEA), the USPS structure was changed so it could operate the parcels side of its business as Competitive Services under different regulations with fewer constraints than are in place for the market dominant mail side of the business.

“Just as with the mail side of the USPS’s business, its competitive shipping side has grown through industry collaboration. As the USPS introduced more parcel products and services, an industry of intermediaries grew as well. Providers

The Pony Express

Created in 1860, the Pony Express was the brainchild of William H. Russell. According to Rickie Longfellow’s article on the Highway History page of the Federal Highway Administration’s website, “[Russell’s] ad in the newspapers seeking riders read: ‘Wanted. Young, skinny, wiry fellows not over 18. Must be expert riders willing to risk death daily. Orphans preferred.’” However, the requirements for riders were later loosened, and riders ranged from as young as 11 to as old as mid-40s.

St. Joseph, Missouri, was the starting point for the direct 2,000-mile route to the West, much of which was considered unknown land except for a few settlements and military forts. According to Longfellow’s article, Russell and his partners built relay stations every five to 20 miles (about 150-190 stations in total), where riders could obtain fresh horses.

Perhaps the Pony Express’s greatest achievement in terms of the nationwide delivery network was the fact that its riders demonstrated that the Central Route to California was usable all year long. On October 24, 1861, however, the transcontinental telegraph line was completed, rendering the Pony Express essentially obsolete after only a year and a half. However, it continues to hold the interest of many Americans.

who offered easier access and use of USPS parcel products, as well as competitive rates and better customer support systems have flourished and helped the USPS significantly grow its parcel business over the years.” Given this spirit of industry collaboration and innovation, it will certainly be interesting to see how the USPS continues to evolve and stakes its claim in this fast-paced, ever-changing world of small-package delivery.

TO SUM UP

Between March 1 and June 2, 2025, UPS implemented changes on 11 separate days — far from the limited adjustments shippers were used to. Some were straightforward — such as the Overmax fee increasing from $1,325 to $1,775 on June 2. But many others were more complex, such as the introduction of a two percent processing fee on May 19 or adjustments to ZIP Code-to-zone mappings on March 24 and again on June 2. Unlike traditional rate changes where shippers can compare old and new costs to assess impact, these newer, more nuanced updates require additional analysis to fully understand.

— KEEGAN LEISZ

USPS’s universal service obligation serves as both its greatest strength and biggest competitive weakness. While UPS and FedEx cherry-pick profitable urban routes, USPS must serve every address in America, including remote areas that drain resources and limit operational efficiency. This obligation has historically been viewed as untouchable, but previous conversations about changing rural delivery frequency reveal that flexibility exists.

— HELAINE RICH

Dropping the ball on the delivery component of the e-commerce journey is a worrying trend for retailers relying on younger consumers to drive sales. Given that under 35s are currently the biggest contributor to online growth — 44% made online purchases at least every two weeks, up from 33% in 2024, and 43% increased their online purchases year-over-year, compared to 32% of over 65s — retailers need to step up their delivery game with help from technology to protect their bottom line.

— JOHANNES PANZER

A warehouse is only as good as the processes driving its decisions. If you are not leveraging inventory analytics, you are missing out on improvement opportunities.

— JEFF HAUSHALTE

Approaching automation as a strategic investment is the best way to get the most value from it. When considering an area of your facility for automation, think about how much return on investment (ROI) you can expect it to provide year-over-year.

— NATE ROSIER

With the explosion of e-commerce, even small and midsized businesses are handling more shipments than ever. More volume means more complexity and a higher likelihood of billing errors. For example, a package misclassified by weight or zone could incur a much higher fee. Multiply that by thousands of shipments, and it becomes a significant cost center.

— CHRIS SCHRAMM