S&P: Amazon delivery not a threat to 3PLs in "near-term"
The giants of the third-party logistics (3PL) world should not see any move by Amazon into the delivery market as a near-term threat.
That’s according to ratings agency Standard & Poors, which has reacted to reports that the ecommerce giant is establish its own in-house delivery function.
Some experts said that traditional 3PL players such as FedEx and UPS would should see the reports as a “salutary warning”.
But in a release S&P has said any moves into the delivery market would not be a significant threat to 3PLs, at least in the short-term.
“We see Amazon's reported test, which follows similar articles last October, as a potential way for it to leverage its volume and logistics infrastructure to generate revenue and help lower its huge ($21.7 billion in 2017) shipping costs by selling empty space on the trucks that it is already using to meet its own transportation needs,” said the ratings agency.
“Another benefit of the programme would be to offer a closer linkage between its wholesale and retail customers. Given the massive scale, global networks, and strong competitive positions of FedEx and UPS (and that Amazon relies on them to move many of its packages), we do not see this limited test as a near-term threat to either company.
“However, we believe that the long-term implications are less clear and could evolve into a more serious challenge if it undermines market pricing or materially changes the bargaining position of Amazon relative to the established package carriers.”
ASCM: Supply chain pay gap closes in under 40s
The pay gap between men and women working in supply chain under the age of 40 has finally reached parity, according to the Association for Supply Chain Management’s latest annual Supply Chain Salary and Career Report.
The gender pay gap in this age group had been narrowing over the past two years, the ASCM’s previous surveys show, and in 2021 has closed entirely. Women report a median salary of $81,000 annually, while men earn a median annual salary of $79,000. Across all age brackets, men report a median salary of $82,000 and women $80,000.
Other highlights from the ASCM report
- 95% of supply chain professionals kept their job through the pandemic
- The typical starting salary for a supply chain professional is $60,000
- 48% of supply chain professionals now work from home
- 88% of survey respondents find supply chain a fulfilling career path
But there is still work to be done in closing the divide in those over the age of 40. Older men are still earning far more than their female peers, with a discrepancy of between $12,000 and $23,000 annually. ASCM’s report does not definitively conclude why this disparity remains, but says women who began their careers several decades ago may have started out on lower salaries. They may also have missed out on steady wage increases and career development after taking time away from work to have and raise families.
It is also likely that the pay gap in over 40s is affected by a lack of women in executive leadership positions. A recent Gartner study found that, while women now represent 41% of the supply chain workforce - a five year high - only 15% of executive level positions are held by women. That figure is a decline of two per cent on 2020.
Supply chain’s racial pay gap remains
For the first time, ASCM’s annual survey also looked into the pay gap between ethnicities, finding that the median salary for black professionals was 12% less than their white peers, and Latinos earned on average 14% less. That represents a divide of between $9,000 and &10,000 in real terms. Asian professionals earned a median salary of $80,000, compared with the $83,000 for white professionals.
Abe Eshkenazi, the ASCM chief executive, said reporting on and acknowledging lingering wage disparity was not enough: “Supply chain organisations must lead the way by creating environment where diverse talent is valued, included and developed. The need for supply chain professionals has never been greater, so now is the time to expand the aperture to include diversity of thought, influence and input — particularly for women and people of colour.”
Read the full report: ASCM 2021 Supply Chain Salary and Career Report