Strikes Cause Changes in Shipping Channels

There is nothing like a strike, during a global recession no less, to anger buyers and suppliers alike. But that very well may happen in the next week as the Royal Mail goes on strike. The Economist reports that already companies like Amazon.com have already made other arrangement so their deliveries can reach their customers.

And so it starts. Channel management is quite important and buyers and sellers alike want to be confident in deliveries. Once labor unrest enters the conversation, companies get very nervous and make channel changes. Once those changes are made they are hard to undo. Companies just don’t go back to normal when the coast is clear. Permanent changes in the channel occur, and with good merit.

Several years ago there was a UPS strike and deliveries were in jeopardy. Federal Express came into the manufacturer where I was working and promised to pick up the slack by coming by at least twice a day to deliver and pick up. In addition, they lowered their prices. Their service was so good, and their prices so competitive, that they enjoyed a significant uptick in business once the strike were over.

Just the threat of a strike will get shippers moving in another direction. And sometimes that direction brings a breath of fresh air. The Royal Mail, and the CWU, should take note.