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consolidation/EBO...so what happens now...
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<blockquote data-quote="island1fox" data-source="post: 670455" data-attributes="member: 4816"><p>Viking,</p><p>Just some food for thought.</p><p>UPS salespeople work on "commission"</p><p>Have you heard the term "contract compliance"--UPS does a very bad job with this .</p><p>I will try to keep it as simple as possible:</p><p>A fairly large customer that ships heavily to say zones 2,4,6. and 8.The customer tell the UPS sales person -give me a huge discount on zone 2 and 4 --will pay higher on 6 and eight. If the customer gives UPS all the packages this could average the rev per pc and could work.</p><p>BUT --After the 97 stike most customers keep an account with UPS and fedx.</p><p>They would call the fedx salesperson and demand a high discount on zones 6 and 8--will promise to pay higher rate on zones 2 and 4.</p><p>The ups driver gets zone 2 and 4 packages --The fed x driver gets zones 6 and eight.</p><p>The customer gets highly discounted shipping from two companies.</p><p> </p><p>Main problem again: Density or not --if your total cost per piece is getting close to --gaining on --or surpasses your total revenue per piece--you are finished. This is a complex problem broken down to a simple cost equasion.</p><p>If you put a thousand dollars worth of volume in the system and it costs you two thousand dollars to totally process the volume --you lose !!</p><p>Cash flow or no --simple math is TOTAL CPP vs TOTAL RPP.</p><p>Viking --with all due respect --a growth strategy does not include reducing your vice President level by two thirds <img src="/community/styles/default/xenforo/smilies/FeltTip/sad-little.png" class="smilie" loading="lazy" alt=":sad-little:" title="Sad Little :sad-little:" data-shortname=":sad-little:" />Looks like they are persuing a much different strategy!!!</p><p>Many people --who do not understand a District mgrs Job --say dead wood --Far from true ----Those 46 District managers are never "off the clock" --I would say the average District mgr put in a good 12 to 14 hours per day.</p><p>Here is an good analogy for you.</p><p>Lets say a driver today is doing a total of 150 stops( I obviously know this varies route to route) Because of cost cutting we eliminate two thirds of the drivers but keep the same total stops----This driver would now have 450 stops. Impossible task !!!</p><p>UPS has been reducing districts over the years --the same way some routes were eliminated and dispatch was increased.</p><p>This present reduction of 46 to 20 is MASSIVE --MASSIVE.If the average DM was working 12 to 14 hours with 46 districts ---with 20 ??????</p><p>Yet most here seem to feel that everything else will remain the same ????</p><p>Sure the 26 Vice Predidents/District managers were all dead wood and were only decoration or figureheads ----Look in the mirror --the person you see in there will tell you the truth !!!!<img src="/community/styles/default/xenforo/smilies/FeltTip/dead.png" class="smilie" loading="lazy" alt=":dead:" title="Dead :dead:" data-shortname=":dead:" /></p></blockquote><p></p>
[QUOTE="island1fox, post: 670455, member: 4816"] Viking, Just some food for thought. UPS salespeople work on "commission" Have you heard the term "contract compliance"--UPS does a very bad job with this . I will try to keep it as simple as possible: A fairly large customer that ships heavily to say zones 2,4,6. and 8.The customer tell the UPS sales person -give me a huge discount on zone 2 and 4 --will pay higher on 6 and eight. If the customer gives UPS all the packages this could average the rev per pc and could work. BUT --After the 97 stike most customers keep an account with UPS and fedx. They would call the fedx salesperson and demand a high discount on zones 6 and 8--will promise to pay higher rate on zones 2 and 4. The ups driver gets zone 2 and 4 packages --The fed x driver gets zones 6 and eight. The customer gets highly discounted shipping from two companies. Main problem again: Density or not --if your total cost per piece is getting close to --gaining on --or surpasses your total revenue per piece--you are finished. This is a complex problem broken down to a simple cost equasion. If you put a thousand dollars worth of volume in the system and it costs you two thousand dollars to totally process the volume --you lose !! Cash flow or no --simple math is TOTAL CPP vs TOTAL RPP. Viking --with all due respect --a growth strategy does not include reducing your vice President level by two thirds :sad-little:Looks like they are persuing a much different strategy!!! Many people --who do not understand a District mgrs Job --say dead wood --Far from true ----Those 46 District managers are never "off the clock" --I would say the average District mgr put in a good 12 to 14 hours per day. Here is an good analogy for you. Lets say a driver today is doing a total of 150 stops( I obviously know this varies route to route) Because of cost cutting we eliminate two thirds of the drivers but keep the same total stops----This driver would now have 450 stops. Impossible task !!! UPS has been reducing districts over the years --the same way some routes were eliminated and dispatch was increased. This present reduction of 46 to 20 is MASSIVE --MASSIVE.If the average DM was working 12 to 14 hours with 46 districts ---with 20 ?????? Yet most here seem to feel that everything else will remain the same ???? Sure the 26 Vice Predidents/District managers were all dead wood and were only decoration or figureheads ----Look in the mirror --the person you see in there will tell you the truth !!!!:dead: [/QUOTE]
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