Exchange Expected to Save $1.6 Million a Year with UPS as a Shipping Provider
Dan Daniel DC Logistics Operations Manager Alecia Barrett checks one of the first shipments staged for UPS pick up.
Just in time for the crucial holiday shopping season, the Exchange, for the first time, has added UPS as a delivery provider for orders placed through ShopMyExchange.com.
“Including UPS as a provider is expected to save the Exchange $1.6 million annually in shipping costs,” said Bryson Wingo, Logistics operations analyst and project lead. “This underscores the Exchange’s commitment to controlling expenses and leading military resale to more efficiently serve Warfighters and their families.”
In the first week, the Dan Daniel, Waco and West Coast distribution centers completed more than 27,000 UPS shipments, saving more than $52,000 in shipping cost.
LG and IT worked to add UPS to their list of parcel carriers, which includes the U.S. Postal Service and FedEx. The LG team negotiated competitive UPS rates, while IT included UPS shipping and cost information into the Exchange distribution centers’ rate shopping system.
Dan Daniel DC’s Achuey Awol and Antonio Blackwell prepare boxes for UPS shipment.
The Dan Daniel, Waco and West Coast distribution centers began using UPS this month. In the first week, the distribution centers completed more than 27,000 UPS shipments, saving more than $52,000 in shipping cost. The average savings per UPS shipment is $2.26.
“The addition of UPS as a parcel carrier provides the Exchange with the best opportunity to select the most competitively priced shipping option for each order placed ShopMyExchange.com,” said David Young, chief of eCommerce Fulfillment Operations. “This is a major win.”
As the fourth quarter approached, LG and IT worked to add UPS before the holiday shopping season.
“Our team worked hard and fast from the time we started discussions with LG and UPS,” said David Adams, director of IT Omni Channel-Logistics Services, “With holiday shopping season approaching, creating quick, cost-effective solutions was a necessity.”
