Afternoon Coffee: USPS raising commercial shipping prices; Manufacturers struggling to meet demand in grocery stores; Agiloft investment and CEO announcement

pressmaster/Adobe Stock

The United States Postal Service announced that it will temporarily raise commercial shipping prices in response to an increase in demand from e-commerce delivery during the COVID-19 pandemic, according to Supply Chain Dive. Parcel rates will increase by at least 24 cents.

Logistics capacity has struggled during the COVID-19 pandemic, especially with high e-commerce volumes. The rate increases are set to affect a large breadth of shippers, according to the article. However, it is not clear yet how the increases will impact shippers with negotiated-service agreements. The announcement comes as the USPS faces months-long financial burdens, warning it may run out of cash next month.

"For small shippers who rely upon the USPS as their primary carrier, these surcharges ($0.25/pkg First Class Package, Priority Mail $0.40/pkg) will have a significant impact on Q4 shipping expense," Nate Skiver, a parcel transportation consultant, said on LinkedIn.

Manufacturers still struggle to meet demand of groceries, cleaning supplies

In the beginning of the COVID-19 pandemic, buyers likely remember a frenzy at the grocery store as shoppers raced to buy groceries, paper goods and cleaning supplies. However, manufacturers are still struggling to make items fast enough to keep shelves full, according to the Wall Street Journal.

Food, beverage, paper and cleaning manufacturers ramped up production of these goods in the spring to meet demand. At the peak of the coronavirus pandemic shopping spree at the end of March, 13% of items were sold out at stores. Now, about 10% of items remain out of stock, compared to the normal range between 5 and 7%, according to the article. Manufacturers have focused their supply chains on making and stocking top-selling items, which can lead to a lack of niche or seasonal items in stores.

“In-stock conditions at retailers are much better than two months ago but not anywhere where we would like them to be,” Steve Cahillane, Kellogg’s Co. chief executive, told the Wall Street Journal.

Agiloft announces $45 million investment, new leadership

Contract lifestyle management (CLM) specialist Agiloft announced Monday that it landed its first outside investment in company history and named a new CEO.

The $45 million growth equity investment comes from FTV Capital, a company supporting businesses that focus on enterprise technology and services, financial services, and payments and transaction processing. Meanwhile, Agiloft named Eric Laughlin, an executive with experience in the legal tech field, as its new CEO.

“Agiloft has established itself as a trailblazer in the fast-growing market for contract and commerce lifecycle management software,” said Alex Mason, partner at FTV Capital. “To develop a no-code product that customers love, while prioritizing profitable growth without external investment, is a remarkable achievement. We are proud to be a collaborative partner to the Agiloft team and look forward to the exciting journey ahead.”

Never miss out on Spend Matters news — sign up for our newsletter!

Share on Procurious

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.