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554: Navigate Fuel Volatility and Disruption, with DeliverDirect
Edward Burek of SmartKargo & Marco Ferrara of DeliverDirect talk about issues impacting small parcel delivery; fuel price reality; & keeping costs low & simple.  IN THIS EPISODE WE DISCUSS: [02.04] An introduction to Edward and Marco, and their roles at SmartKargo and DeliverDirect. [03.07] An overview of DeliverDirect – who they are, what they do, and how they help their customers. [03.29] As the industry deals with ongoing fuel volatility, why Delta Airlines have a structural advantage other carriers don't have, and what it means in practice to have an airline like Delta running the middle mile for e-commerce shipments. “Fuel is the biggest cost with an airline but, because our passenger aircraft are flying around anyway, a lot of that fuel cost is absorbed – we’re able to insulate and reduce what we’re charging our customers.” [05.52] As shippers see fuel surcharges, accessorial fees, and pricing complexity hit unprecedented levels, have surcharges stopped being about fuel and started becoming part of a business model? “There are a lot of carriers that are taking advantage of the market forces right now. A lot of businesses are built on surcharges... It’s become a mechanism to dial up your revenue.” [08.20] How DeliverDirect are approaching pricing differently. “It’s so easy to forecast – it’s a CFO’s dream!... We want it to be a win-win all the way through the supply chain.” [10.50] How DeliverDirect pulls together what already exists in the ecosystem, and the role SmartKargo's platform plays in making those pieces work together as a single delivery experience. [12.42] How SmartKargo is using real-time data and automation to predict shipment issues and recommend corrective actions before DeliverDirect customers feel any disruption. [13.56] Why quality data is the real foundation behind successful AI in logistics. “If you don’t have good data, you can’t put an AI engine over that.” [14.39] From ocean backlogs to cross-border tariff complications, how big industry impacts are translating into challenges for businesses, and the impact of big e-commerce market growth. [16.42] Whether there are enough packages and profitable demand for everyone competing in a tough market, and how companies are differentiating themselves beyond just lowering prices. [19.17] The future for small parcel logistics. “What if it becomes coop-etition?!” RESOURCES AND LINKS MENTIONED: Head over to DeliverDirect’s website now to find out more and discover how they could help you too. You can also connect with DeliverDirect and keep up to date with the latest over on LinkedIn, or you can connect with Marco or Edward on LinkedIn. If you enjoyed this episode and want to hear more from DeliverDirect, check out 538: Enjoy Ecommerce Delivery at the Speed of Flight, with DeliverDirect. Check out our other podcasts HERE.
Let's Talk Supply Chain
https://www.letstalksupplychain.com
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