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consolidation/EBO...so what happens now...
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<blockquote data-quote="Dustyroads" data-source="post: 669796" data-attributes="member: 22610"><p>IslandFox, first, let me note that with regard to indirecting a rural delivery to a commercial address should have no impact on the shipper. And, rest assured, I do know the difference between a shipper and a consignee. If the shipper sent the package to a residential address that the consignee provided, and if the consignee is pleased that we indirected their package, I'm not sure how the shipper would be impacted. We indirect a lot of packages for lots of different reasons. In rural areas it happens every single day we operate. </p><p> </p><p>As for your prediction that the number of cars that ups puts on the street every day will shrink from 65,000 to 25,000, it is pretty unrealistic. If that were to happen, it would be, volume wise, similar to the day after christmas every day. </p><p> </p><p>As for your belief that this is the ultimate goal of the downsizing that started with 1800 management jobs being eliminated, I have never heard anyone from management, or anyone, at all, say that this is a goal of our new corporate strategy. To suggest that we want to reduce our volume by more than half, just keeping the very profitable packages, isn't much of a growth strategy. </p><p> </p><p>Finally, addressing your belief that it is the high cost of union workers that have put us in a competitive disadvantage, I think that the opposite is true. You could never, ever, get a non-union Fedex driver to deliver 25 stops an hour. UPS gains ITS competitive advantage and financial advantage by economies of scale. If we can put 500 pieces on a package car, and get our driver to deliver 25 stops an hour, our profit margin is high. Our volume gives us an advantage that far outweighs any advantage that FedEx has with cheap labor. On my area, FedEx uses three package cars, an express, a ground and a home delivery car on a rural area where I take care of everything for ups in one car, and deliver more packages that all three of those drivers combined. Who has the competitive advantage now. To throw away the advantage of economies of scale would be foolish.</p></blockquote><p></p>
[QUOTE="Dustyroads, post: 669796, member: 22610"] IslandFox, first, let me note that with regard to indirecting a rural delivery to a commercial address should have no impact on the shipper. And, rest assured, I do know the difference between a shipper and a consignee. If the shipper sent the package to a residential address that the consignee provided, and if the consignee is pleased that we indirected their package, I'm not sure how the shipper would be impacted. We indirect a lot of packages for lots of different reasons. In rural areas it happens every single day we operate. As for your prediction that the number of cars that ups puts on the street every day will shrink from 65,000 to 25,000, it is pretty unrealistic. If that were to happen, it would be, volume wise, similar to the day after christmas every day. As for your belief that this is the ultimate goal of the downsizing that started with 1800 management jobs being eliminated, I have never heard anyone from management, or anyone, at all, say that this is a goal of our new corporate strategy. To suggest that we want to reduce our volume by more than half, just keeping the very profitable packages, isn't much of a growth strategy. Finally, addressing your belief that it is the high cost of union workers that have put us in a competitive disadvantage, I think that the opposite is true. You could never, ever, get a non-union Fedex driver to deliver 25 stops an hour. UPS gains ITS competitive advantage and financial advantage by economies of scale. If we can put 500 pieces on a package car, and get our driver to deliver 25 stops an hour, our profit margin is high. Our volume gives us an advantage that far outweighs any advantage that FedEx has with cheap labor. On my area, FedEx uses three package cars, an express, a ground and a home delivery car on a rural area where I take care of everything for ups in one car, and deliver more packages that all three of those drivers combined. Who has the competitive advantage now. To throw away the advantage of economies of scale would be foolish. [/QUOTE]
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