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Shippers could see rising costs from parcel carriers, human resources investments, experts say. Global and retail supply chains will continue to endure growing pains in 2020 as they transition from the traditional brick and mortar model to e-commerce sales in the midst of a stormy business climate, according to an array of business forecasts by logistics firms. The consensus prediction of double-digit growth in e-commerce will have a huge impact on supply chains in the new year, especially as the "elephant in the room"—amazon.com Inc.—continues to build out its logistics network as it brings more parcel shipping volume in-house and away from partners such as the U.S. Postal Service (USPS), according to John Haber, Founder & CEO of Atlanta-based supply chain consultancy Spend Management Experts. Amazon’s moves will continue to put fiscal pressure on struggling USPS, which will keep hemorrhaging money unless Congress enacts significant reform to ease the burden of its pension obligations, he said. At the same time, shippers of all sizes will see "a drastic cost impact" triggered by recent policy changes from UPS Inc. and FedEx Corp. to their "additional handling policies," Haber said. The new rules are expected to add a $24 per package charge for packages from 50 pounds to 70 pounds, resulting in projected cost increases in the millions of dollars annually for many larger shippers. Solving those challenges would be tough enough in predictable business conditions, but companies in the logistics space face a historically tough market for attracting labor talent. "Businesses will have to think creatively to attract talent since the unemployment rate is at a 50-year low," Haber said in an email. "Increase in pay, expansion of benefits, paid education and training, flexible hours, and more are among the various ways businesses will attract labor." To keep their warehouses […]
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