Commentary
The cost of fulfillment is a considerable factor in what veterinary clinics and retailers pay at the point of sale especially when measured as a percent of net income versus gross sales. In recent weeks we have urged animal health pros to consider improving replenishment planning, adjust inventory levels and to better understand how the cost of moving products around the U.S. affects their COGS.*
To date, no one has produced any information to show transportation companies are making developmental investments in our industry’s growth and development.” – Kirk Augustine
Yellow’s exit from the shipping industry reduces the U.S. small-batch trucking capacity by 15 percent. It was known for being one of the lowest-cost carriers. Other LTL companies are proactively telling customers they won’t match Yellow’s previous rates.
Current LTL capacity is good, but end users may face higher pricing as the holiday season arrives . . . slower pickup schedules are anticipated.”
Source: NBC News, August 8, 2023. Link.
*see related AHD posts:
- Identifying and controlling the hidden costs of veterinary inventory. Link.
- UPS is preparing contingencies ahead of looming strike. ARE YOU? Link.
- Retailers set higher bars for free shipping as delivery costs surge. Link.
Shipping costs are up, distribution center costs are up, fuel is up across the board . . . companies must either pass it to the consumer through price increases or shipping policy changes.” – Anisa Kumar in The Wall Street Journal