Atlanta-based United Parcel Service (UPS) announced the opening of its newest contract logistics facility in Thailand that is dedicated to Seagate Technology. The warehouse will provide small package delivery, freight and contract logistics services, and technology solutions to the data storage company.
Situated next to Seagate’s Korat plant, the facility in Amphur Sungnoen, Nakhonratchasima Province, is a contract logistics warehouse that will operate around the clock and double its existing storage capacity.
Designed to operate as a one-stop service point for Seagate, the facility, which the company claims is the largest in Asia, is equipped with a UPS warehouse management system to ensure Seagate’s production lines operate efficiently.
Beyond Thailand, UPS currently manages contract logistics services for Seagate throughout Asia, with major operations in Singapore and China.
“This facility is fully operated by UPS and is a testament to our long-term commitment to supporting growth in the region,” said Edmund Lo, managing director of UPS Thailand. “As a strategic business enabler, we will continue to leverage our global logistics expertise and network to help companies—like Seagate—trade in a global marketplace for business success.”
Results from the “2013 Change in the Chain” survey, commissioned by UPS, revealed the trend of Asian high-tech companies to increase their focus on providing a best-in-class customer experience, with the majority looking to make supply chain changes to improve supply chain capabilities, as well as reduce lead times.
Thousands to be hired for holiday demand spike
In related developments, UPS said it expects to hire between 90,000 and 95,000 seasonal employees to support the anticipated holiday surge in package deliveries that will begin in October and continue through January 2015.
The company said it is gearing up for increased holiday delivery volume in 2014 by hiring seasonal positions such as package sorters, loaders, delivery helpers, and drivers.
“We have initial volume forecasts from our customers and are starting the hiring process for our temporary peak season jobs,” said John McDevitt, UPS senior vice president of human resources and labor relations. “We have needs throughout the United States and anticipate more applicants this year than in 2013.”
UPS said it is ensuring a smooth 2014 holiday experience by improving its network utilization and schedule planning, including increasing daily processing capacity with the opening of new and expanded buildings, plus installing temporary mobile sorting and delivery centers.
“UPS is adding thousands of new or leased delivery vehicles, trailers, aircraft and portable loading aids to flex capacity in the UPS network,” it said.
It is also adding operating days and shifts—full ground delivery and pick-up operations the Friday after Thanksgiving and nearly 50 new package sorting shifts throughout the company’s existing hub locations.
Shipment tracking timing and accuracy will be improved with additional and mobile app upgrades for enhanced information on package location and shipment status.
FedEx to increase shipping rates
On the other hand, Tennessee-based FedEx Corp. announced a plan to increase shipping rates by January next year.
The parcel giant in an official statement said it will raise shipping rates by an average of 4.9 percent for U.S. domestic, export, and import services.
Ground and freight services will increase shipping rates effective January 5, 2015.
Ground and home delivery services will up rates by an average of 4.9 percent, while FedEx SmartPost rates will also change.
The freight division will increase shipping rates by an average of 4.9 percent. This rate change applies to freight shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico.
FedEx previously announced in May 2014 that it will apply dimensional weight pricing to all its ground shipments. That change also takes effect January 5, 2015.
Photo: jo.sau
