Nov 10, 2020

ShipMatrix & USPS ─ eCommerce Certainty in Uncertain Times

Supply Chain
Sam Scane
3 min
The ShipMatrix has designed a system that gives shippers room to breathe alongside the modern duopoly...

Transport consultancy ShipMatrix Inc. recently reached an agreement with the U.S Postal Service (USPS) to provide its ShipMatrix alongside the delivery service to ensure efficient parcel shipment during peak holiday shipping cycles. The ShipMatrix itself serves to connect its collection of large shippers and third-party logistics providers to the USPS’ massive transportation infrastructure, in the hopes of being able to assure capacity for all parcel users during the peak period.

With a large portion of the world still shadowed by the looming hand of the pandemic earlier this year, it’s more important than ever for the e-commerce sector to ensure that goods are delivered on time. As a result of the pandemic, a lot of retail and e-commerce shippers were “capped” by the parcel duopoly of USPS and FedEx as early as May, due to the rise in online orders, a result of national lockdowns across the globe. However, some key aspects offered by ShipMatrix include no limit on parcel volume, no peak season surcharges; and an automatic money-back guarantee on packages not delivered within five days. 

This kind of reliability for suppliers is essential, especially when the aforementioned duopoly will charge for peak-time deliveries, and may implement caps on parcel volumes, as well as forego their service guarantees. 

President of ShipMatrix Satish Jindel said “A while back, in December 2018, we got to thinking the future of the parcel is in the mailbox,” he said. “What that means is that there is a monopoly and if they [USPS] can get the lighter-weight smaller packages that fit in a mailbox, they can handle twice the number of packages that they handle today. They have not done anything to promote that and go after it…so we are taking this nice Christmas gift of the USPS First-Class service and put a beautiful wrapping paper around it with all the value-added capabilities of ShipMatrix through its technology and other things that are guaranteed. We will monitor it proactively and issue customer credit [if a package is late], and they won’t have to file for failure. They will not be charged for it. At Christmas time, people don’t care if they get a package in one day or five days; they just need to know they will have it before Christmas Eve.”

Some of the key things offered by ShipMatrix are: 

  • No peak-season surcharges. 
  • Money-back guarantee on packages not delivered within five days. 
  • Provide USPS deliveries with marketing, customer support and IT visibility. 
  • Insight into parcel supply and demand through many customer relationships.

Considering that Christmas is only just around the corner, it makes a lot of sense for postal companies to start working toward solutions for what may be the greatest demand of the e-commerce sector to date. According to ShipMatrix data, the current capacity levels for parcels will be short by roughly 2.7mn between Black Friday and Christmas Eve, a figure that has not been disputed. These details alone show that now more than ever, the world needs a reliable delivery service, one perhaps spearheaded by the ShipMatrix. 

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Jun 24, 2021

Kuehne+Nagel cuts carbon footprint by 70% for Honda China

2 min
Road-to-rail logistics solution will reduce carbon emissions at the automaker by 70%, stripping 16,000 tonnes of CO2 from its supply chain

Around 16,000 tonnes of CO2 has been cut from supply chain of Honda's China-based manufacturing division through a road-to-rail transformation in partnership with logistics leader Kuehne+Nagel

The programme was developed through KN Sincero, the joint venture between Swiss headquartered Kuehne+Nagel and Chinese automotive logistics firm Sincero, established in 2018. 

KN Sincero worked with Honda China to develop an integrated solution to convert much of its domestic long-haul trucking to train lines, using regional hubs to improve supply chain performance and further reduce carbon emissions. The programme delivered consolidations as well as value-added services, including sorting, scanning, repackaging, GPS track and trace, and recyclable container management. 

"Kuehne+Nagel has always been a supply chain partner that we can rely on, to help us improve our supply chain performance whilst also achieving our environmental goals,” said Mr. Jiang Hui and Mr. Takuji Kitamura, Joint General Manager of Wuhan Dong Hon, the logistics affiliate of Dongfong Honda Automotive. 

After six months of shifting to the road-to-rail model, new supply chain reliability and efficiencies are expected too trip 16,000 tonnes of carbon emissions annually. The carbon savings represent an enormous 70% reduction in total. 

"Automotive is one of the most important sectors in contract logistics, particularly in China, the world’s largest automotive market,” added Gianfranco Sgro, member of the Management Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “I am glad that Kuehne+Nagel and Honda share a common vision of service, innovation and sustainability.”

Kuehne+Nagel’s Net Zero Carbon programme 

Kuehne+Nagel announced its Net Zero Carbon programme in 2019 with a dual purpose to reduce CO2 output in its own logistics operations, as well as partnering with organisations to minimise their own impact on the planet. Kuehne+Nagel reached carbon neutrality globally in 2020 throughout its own, direct emissions, and is now focused on developing its capabilities to serve partners. 

Dr. Detlef Trefzger, Chief Executive Officer of Kuehne+Nagel International AG, said the programme is “a package of measures to fight CO2 emissions and provide sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers”. 

As part of the initiative, Kuehne+Nagel established its own nature projects in Myanmar and New Zealand, and invested in ‘nature-based’ carbon dioxide compensation projects to strip harmful emissions from the environment. It is committed to being CO2 neutral for shipments in its network of transport suppliers by 2030. 

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