While FedEx and UPS remain dominant players in the shipping space, the market is seeing emerging enterprises that are just as eager to go the distance for their customers.
These are younger companies like Veho, a last-mile delivery player based in New York City. While only a decade old—UPS, by contrast, was founded in 1907—it has already nabbed big brands such as Macy’s, Sephora and Lululemon as clients.
When asked why brands are turning to alternative logistics providers, Catherine Dummitt, vice president for marketing at last-mile delivery company Veho, said at Sourcing Journal’s annual Sourcing Summit in New York City last Tuesday that it all boils down to one essential factor. “Ultimately, I think what people are looking for when they’re switching to alternative providers is more control,” she told moderator and Sourcing Journal logistics editor Glenn Taylor.
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For a long time, deliveries were limited to standard or expedited shipping. It was a limitation that forced companies to model their entire e-commerce customer experience on the carrier’s network and capabilities.
“That model is just silly, but it’s also fundamentally broken,” Dummitt said. “I think what we’re seeing is that there’s a bigger opportunity to lean into more optionality.”
For example, now brands can pick different shipping speeds because not every package requires swift delivery. That flexibility is giving brands control over the tradeoffs they make, she believes.
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