As consumers slow down, FedEx and UPS adapt

Discussion in 'The Latest UPS Headlines' started by cheryl, Sep 1, 2009.

  1. cheryl

    cheryl I started this. Staff Member

    As consumers slow down, FedEx and UPS adapt - Yahoo

    At package delivery behemoths FedEx and UPS, last fall's meltdown and the worst recession in a generation has meant a sharp drop-off in the number of documents and packages sent overnight. And it's not just the delivery companies' biggest customers. Small businesses and consumers are opting for slower shipments to save money. In doing so, they're embracing an often-forgotten virtue -- patience.

    Like with so many things in this new era of frugality, it isn't clear if people will remain practical after the economy recovers. For now, though, the desire to save a buck is leaving its stamp on the country's expansive delivery network.
     
  2. AirTechSpec

    AirTechSpec New Member

    Whatever isn't efficient will be used less. Domestic air business is at risk because you can get the same stuff by ground if you want to wait a few days. We charge a premium price for air to get a small increase in delivery speed.

    I believe our air business will slowly migrate to majority international business, where the extra cost can be justified by the MUCH slower shipping times via water. In essence, in inter-continental situations air shipping has no practical competition for small-volume, time-sensitive products.
     
  3. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Too logical.
    Right now everybody is tightening up.
    Once the economy improves and monetary controls loosen up, people will start reacting to the Marketing/Advertising and premium will pick up again.
    Other companies are not like UPS on the excessive cost controls ... not that we haven't spent tens of millions of dollars on consultants. Consultants that come around and ask questions of employees and then tell upper management what they were told.
     
  4. tworavens

    tworavens JuniorMember for 24 Years

    True that. Every day I pick up one or more NDA or NDA Savers that are going across town, or the next town over, or somewhere that is served one-day by ground. These are from big retail chains. I can understand using NDA if it needs to get there by morning, but Savers? And 2DA? And none of them seem to care if I point it out to them. Guess they figure they make up the difference by underweighting three-fourths of their packages anyway.