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UPS Partners
Buyout in 2013
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<blockquote data-quote="j13501" data-source="post: 1076289" data-attributes="member: 918"><p>No, I'm not forgetting them, in fact on page 5 of this thread, I posted some comments regarding management consultants that UPS retained following the 1997 strike and their beliefs on management compensation. </p><p></p><p>What I am saying is that as customers perceive Fed Ex Ground's service as equivalent to ours, they start to look at price as the key issue in selecting a carrier. It's not that the "background noise" is lost in cost per pc. It's that regardless of "background noise", if we can't price competitively against our competition, (because our cost structure is higher) we will lose market share. That is the true bottom line. The challenge for the management committee is how to bring down cost, so we stay competitive. They have decided that reducing regions, reducing districts, cutting management headcount, changing the compensation structure, etc, is what is needed to maintain our market share in the U.S. </p><p></p><p>Meanwhile, they are taking the right steps to expand worldwide, so that our success in the future will be in markets where we don't have such high structural wage rates. Our percentage of overall profits that come from international continue to expand every year. </p><p></p><p>Your last statement wonders if "those days are over". I hope not, because we always need good people in management. I just think that the management committee believes we can still retain good people, while reducing management headcount & compensation. I guess we'll see what happens.</p></blockquote><p></p>
[QUOTE="j13501, post: 1076289, member: 918"] No, I'm not forgetting them, in fact on page 5 of this thread, I posted some comments regarding management consultants that UPS retained following the 1997 strike and their beliefs on management compensation. What I am saying is that as customers perceive Fed Ex Ground's service as equivalent to ours, they start to look at price as the key issue in selecting a carrier. It's not that the "background noise" is lost in cost per pc. It's that regardless of "background noise", if we can't price competitively against our competition, (because our cost structure is higher) we will lose market share. That is the true bottom line. The challenge for the management committee is how to bring down cost, so we stay competitive. They have decided that reducing regions, reducing districts, cutting management headcount, changing the compensation structure, etc, is what is needed to maintain our market share in the U.S. Meanwhile, they are taking the right steps to expand worldwide, so that our success in the future will be in markets where we don't have such high structural wage rates. Our percentage of overall profits that come from international continue to expand every year. Your last statement wonders if "those days are over". I hope not, because we always need good people in management. I just think that the management committee believes we can still retain good people, while reducing management headcount & compensation. I guess we'll see what happens. [/QUOTE]
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