Logistics

Who is responsible for fees related to unexpected, yet low shipping volume? According to UPS, it should be its retailer partners.   The delivery service is putting retailers on the hook to share costs related to labor and surplus space on trucks if the merchant fails to ship its forecasted packages during peak periods, according to MarketWatch. Fees could also apply if there is a discrepancy among the sizes of boxes expected to ship,   

A grocery distributor and retailer is expanding its supply chain management team.   SpartanNash named Tom Lee as senior VP, supply chain. In his new role, he will be responsible for overseeing SpartanNash’s supply chain, logistics, transportation and inventory management departments.   

Although Amazon's sales advanced by a respectable 23% over the quarter (do link to our story yesterday), the pace of growth at the online behemoth remains much slower than it was over most of the prior fiscal year. Some of this is the result of a less favorable exchange rate diluting contributions from the international business. However, some is also down to a more challenging demand environment in North America which has limited spending uplifts on products within Amazon's core territory.  

Amazon on Thursday posted its eight straight quarter of net profitability, fueled by growth in e-commerce sales and its lucrative cloud service platform, Amazon Web Services.   Amazon easily topped earning expectations for its first quarter, ended March 31, reporting $1.48 per share, above the $1.12 Wall Street expected. Net income rose to $724 million from $513 million in the year-ago period.  

In a major restructuring of its eastern U.S. distribution network, Ace Hardware Corp. intends to open a new 1.1. million-sq.-ft. Retail Support Center in Pennsylvania while closing a handful of other facilities.   The moves will play out over the next 24 months.  

Always in search of more efficient, cheaper delivery methods, Amazon is exploring a new avenue.   The online giant has created a think tank that is evaluating how driverless vehicles could improve package delivery speeds, according to NewsMax.   The group, which is comprised of 12 members, began brainstorming on the initiative more than a year ago. However, the group is not designing a fleet of driverless vehicles.   

Amazon’s distribution fleet is once again bolstering its breadth.   The online giant plans to open three additional fulfillment centers in New Jersey. The new sites in Cranbury Township, Edison and Logan Township, a move that will create more than 2,500 new, full-time jobs.   

99 Cents Only Stores turned in a strong sales performance for its fourth quarter, even as its net loss grew amid rising expenses.   The retailer reported a net loss of $20.9 million for the quarter, versus a net loss of $18.4 million in the year ago period.   Net sales increased 6.7% to $552.5 million, while same-store sales rose 6.4%. Average ticket gained 4.4% and customer traffic increased 1.9%. Operating loss was $6.5 million versus $2.7 million in the period a year prior.