UPS Adopts Control Tower Process to Cope With Holidays – Bloomberg

Measures Atlanta-based UPS is taking include implementing a “control tower” process, which entails comparing big retail customers’ actual shipping volumes to those they originally projected, and going back to them to “mute” their demands if volumes get too high, Myron Gray, president of U.S. operations, told analysts on a conference call.

UPS’s forecast for December deliveries follows FedEx’s prediction this week of record shipments of packages between Black Friday and Christmas Eve. Memphis, Tennessee-based FedEx sees an 8.8 percent increase from last year, as e-commerce hits a peak.

UPS plans to spend $175 million on improving its operations during the holiday rush. It’s opening 14 temporary shipping facilities to help expedite deliveries, upgrading its Orion software to plot the best route for drivers, and is hiring as many as 95,000 seasonal workers to field packages.

UPS may hike charges for major customers for holiday package surges – Reuters

United Parcel Service Inc may charge major customers more for a surge in late, unplanned packages or turn down the business if it threatens disruptions during the peak holiday season, a top executive said on Friday, trying to avoid a repeat of last year’s delivery meltdown.

UPS and main rival FedEx Corp, both considered U.S. economic bellwethers, are approaching their busiest time. Last year a last-minute surge in online consumer promotions left an estimated 2 million express packages stranded on Christmas Eve.

“If it (a late surge) creates challenges and adds costs we would charge a premium,” Chief Financial Officer Kurt Kuehn told Reuters. “If it puts our service at risk, we would have to deny (the business).”

 

UPS Profit Tops Estimates, Sees 11% Rise in Peak Shipment – Bloomberg

Net income rose 11 percent to $1.21 billion, or $1.32 a diluted share, from $1.1 billion or $1.16 a share a year earlier, the company said in a statement. Analysts predicted $1.28 a share, on average. It’s the first time UPS surpassed analysts’ projections this year.

UPS is working to avoid the peak season problems it faced last year, when unseasonably cold and snowy weather combined with a surge in late, online orders and led to missed deliveries on Christmas. This year, Atlanta-based UPS and FedEx Corp. are bracing for even more orders. FedEx this week forecast record shipments of packages between Black Friday and Christmas Eve, an 8.8 percent increase from last year, as e-commerce hits a peak.

“We expect another robust peak season and are confident our network is prepared to operate at the highest level,” Kurt Kuehn, chief financial officer, said in the statement.

UPS Delivers Strong 3Q Results, 3Q EPS Moves 13.8 Percent Higher

  • Global Shipments Rise 6.9% to 1.1 Billion
  • U.S. Domestic Operating Margin Improves to 14.7%
  • International Export Packages per Day Climb 9.4%
  • Supply Chain and Freight Operating Margin Hits 8.9%
  • Balanced Growth Across All Segments Drives Operating Profit up 8.3%
  • Reaffirms Full-Year Adjusted EPS Guidance of $4.90 to $5.00

FedEx, UPS make plans for a better holiday season – Yahoo

Facing an even bigger mountain of packages this holiday season, FedEx and UPS are hiring more workers to avoid the delays that frustrated shoppers and gift-recipients a year ago.

About 1.3 million express packages handled by UPS and 618,000 carried by FedEx failed to get delivered on time last Christmas Eve, according to ShipMatrix Inc., which makes software for shipment tracking. The firm’s president, Satish Jindel, said UPS and FedEx were at fault only 30 percent of the time.

In most cases, retailers promised guaranteed express delivery but tried to save money and didn’t pay the delivery companies for that speedier service, Jindel said.