Welcome to the May 10th edition of Sent Items.

We are officially in the thick of the May conference madness. It is going to be an incredibly busy few weeks, but the conversations happening on the floor right now are more important than ever as the entire logistics landscape shifts beneath our feet.

Case in point: this week was dominated by the retail giants flexing their physical infrastructure. Amazon officially opened its massive, end-to-end supply chain to external sellers (tanking shipping stocks in the process), Target launched a completely new class of fulfillment facilities (a day late and a dollar short?), and the race for same-day delivery is heating up across the board.

Looking forward to seeing some of you at SubSummit next week, and back here in Nashville the following week at Home Delivery World.

Let’s get into it.

- Matt

The Heavyweight: Amazon Supply Chain Services is Here Amazon has spent decades building the most formidable fulfillment network on the planet—and now it is officially for hire. The launch of Amazon Supply Chain Services allows external sellers to utilize Amazon's end-to-end logistics, from factory pickup to final-mile delivery, even for off-platform orders. The announcement sent ripples through the market, with competing shipping and logistics stocks taking a direct hit as investors digested the threat.

I spoke with Supply Chain Dive this week about what this means for the broader 3PL market and whether Amazon is already a third-party logistics heavyweight. You can read my thoughts in the link below.

This news feels perhaps more "loud" than actually "material". It reads actually quite similar to what they launched three years ago, then called, Supply Chain by Amazon. This feels more like a “re-launch”, with some recognizable clients (P&G in particular).

The key development here is that Supply Chain by Amazon was previously only for Amazon sellers. This new program, Amazon Supply Chain Services is for any business, whether you sell on Amazon or not. It's also now a consolidated offering under one roof, previously, non-Amazon sellers had to use the components separately. It definitely feels more incremental than material. Sources: Supply Chain Dive / WSJ / MarketWatch / Retail Dive

Target Launches Next-Gen Supply Chain Facilities Not to be outdone, Target is rolling out a brand new kind of supply chain node: the "Target Extension" facility. Designed to relieve backroom congestion at its retail stores while speeding up local fulfillment, these facilities act as hybrid inventory hubs to support the massive volume of same-day and localized orders. Editor's Note: I was recently quoted in Modern Retail discussing why this localized hub-and-spoke model might be the first of many as Target battles Amazon for neighborhood density. Sources: Modern Retail

The Same-Day Delivery Boom Why are Target and Amazon pushing their inventory closer to the customer? Because speed is no longer a luxury; it's a baseline. Supply Chain Dive breaks down why an increasing number of retailers are aggressively expanding their same-day delivery offerings. If you don't have a plan for localized inventory or regional carrier partnerships, your checkout conversion rates are going to suffer. Source: Supply Chain Dive

UPS CEO: Drugs Are the Antidote Building on the insights from last week's Q1 earnings call, UPS CEO Carol Tomé continues to emphasize the carrier's aggressive pivot toward high-margin healthcare. In a recent interview, Tomé noted that the booming direct-to-consumer drug delivery strategy—specifically for GLP-1 weight loss medications—is a highly profitable "antidote" to broader macroeconomic uncertainty and declining e-commerce volume. Source: Reuters

Data Check: Drewry WCI Rebounds on Surcharges After three consecutive weeks of cooling, ocean spot rates just snapped back. The Drewry World Container Index jumped 3% this week to $2,286 per 40ft container. The Driver: Carriers have successfully pushed through a new wave of Emergency Fuel Surcharges (EFS) and Peak Season Surcharges (PSS), particularly on Transpacific lanes (Shanghai to NY is up 7%). The ongoing disruptions and naval blockades in the Strait of Hormuz are forcing carriers to heavily adjust pricing to account for elevated war-risk insurance and rerouting uncertainty. Source: Drewry WCI

SubSummit (Kansas City | May 13-15) I am heading to KC for SubSummit on Tuesday, the premier event for subscription brands. I will be hosting an exclusive VIP dinner for brands and operators in attendance. I am also moderating roundtables each day. LEt me know if you will be there!

👉 RSVP for the SubSummit Dinner Here (Wednesday, May 13 @ The Stilwell)

Home Delivery World VIP Dinner (Nashville) HDW is coming to our backyard May 2021, and Third Person will be front and center with our own booth on the floor. We are also hosting a Happy Hour and private dinner throughout the week. Both invites are below.

👉 RSVP for the HDW Dinner Here (Wednesday, May 20 @ Bourbon Steak)

👉 RSVP for the HDW Happy Hour Here (Thursday, May 21 @ Bricktop’s)

🏙️ SubSummit (Kansas City | May 13-15) I’m heading to KC in May for SubSummit, the biggest and most valuable event for subscription brands. I have an exclusive promo code coming for brands who want to attend.

🚚 Home Delivery World (Nashville | May 20-21) HDW is coming to our backyard! Third Person will once again have a booth in the Startup Zone on the floor. We are also hosting a dinner and happy hour throughout the week. If you are coming to Nashville for the show, let me know so we can get you on the list.

Have a great week!

- Matt

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