Inbound Logistics | February 2023

TAKEAWAYS

Snail Mail Goes Green

The United States Postal Service (USPS) is ready to deliver your mail greener and quieter. As it begins to replace its aging fleet of more than

220,000 vehicles, USPS expects to acquire at least 66,000 battery electric delivery vehicles as part of its 106,000 vehicle acquisition plan between now and 2028. As part of a $9-billion investment, the USPS anticipates increasing the quantity of purpose-built Next Generation Delivery Vehicles to a minimum of 60,000. Of these, at least 45,000 will be battery electric by 2028. Plans call for vehicle acquisitions delivered in 2026 and thereafter to be 100% electric. As it explores the possibility of a 100% electric fleet, USPS also expects to purchase an additional 21,000 battery electric delivery vehicles through 2028. Mail carriers also will see benefits. The new vehicles will offer air conditioning and advanced safety technology—options unavailable in the older models the USPS is replacing.

FOLLOW THE PROCESS Process automation plays an important role in building supply chains, finds a benchmark report from Precisely and SAPinsider. A majority (89%) of the SAPinsider members surveyed indicate that they believe process automation in the supply chain is either “important” or “very important” to attain digital transformation objectives. Respondents cite resiliency (51%) and agility (46%) as the top drivers for process automation. The report, however, points to a gap between where respondents want the industry to be versus where it is now. For example, 72% say less than 50% of their supply chain processes are currently automated, while another 33% automate just 25% of their processes. Almost half of respondents are looking to close that gap, with 47% saying they are considering implementing artificial intelligence and machine learning technologies over the next 24 months. Respondents also say that process automation has led to benefits that include: ● End-to-end process visibility (82%) ● Increased process efficiency (79%) ● Defining and documenting standardization (77%) ● Integrated processes across the end-to-end supply chain (75%) ● Building internal skill sets (72%)

February 2023 • Inbound Logistics 17

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