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consolidation/EBO...so what happens now...
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<blockquote data-quote="UPSviking" data-source="post: 670475" data-attributes="member: 25907"><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">"UPS salespeople work on "commission"</span></span></p><p><span style="font-family: 'Verdana'"><span style="color: #2e2e2e">Have you heard the term "contract compliance"--UPS does a very bad job with this"</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">Where I come from our BD can under no circumstance make an contract that we don't make any money on, like everything at UPS they too have to get their superiors to sign off on all their work, I agree that we are not making as much as we used to, but in my region we still make money on all of our accounts.</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">"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.</span></span></p><p><span style="font-family: 'Verdana'"><span style="color: #2e2e2e">BUT --After the 97 stike most customers keep an account with UPS and fedx.</span></span></p><p><span style="font-family: 'Verdana'"><span style="color: #2e2e2e">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.</span></span></p><p><span style="font-family: 'Verdana'"><span style="color: #2e2e2e">The ups driver gets zone 2 and 4 packages --The fed x driver gets zones 6 and eight.</span></span></p><p><span style="font-family: 'Verdana'"><span style="color: #2e2e2e">The customer gets highly discounted shipping from two companies."</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">Again, all of my regions contracts are based on volume guarantied from the customer, so you example above does not apply.</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">We have an lot of customers that ship with both TNT,DHL and UPS and they are priced accordingly, we may on occasion bid for all of their business, but they still pay higher rates than if they where UPS exclusive.</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">"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.</span></span></p><p><span style="font-family: 'Verdana'"><span style="color: #2e2e2e">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 !!</span></span></p><p><span style="font-family: 'Verdana'"><span style="color: #2e2e2e">Cash flow or no --simple math is TOTAL CPP vs TOTAL RPP."</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">I will try to make it simple</span></span><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">:</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">Say that we tomorrow get rid of 30-40% of the customers that we are not making "enough" on as you put it, will you not agree that the B767 still has to land at the airport, and will you not agree that the feeder still has to leave the hub?.</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">An example:</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">Yesterday I delivered 2 packages to an customer, one Amazon and one Air letter from his uncle in Brazil, tomorrow after we got rid of the heavily discounted client Amazon I will only deliver the Air letter from his uncle, We will make the 25$ of the letter but will be missing the 30 cents from the Amazon, does that not increase the cost per piece?</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">I may be missing your point, but UPS introduced consolidated delivery for a reason, to save money spent per piece delivered.</span></span></p><p></p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">Sorry for the long reply everybody.....<img src="/community/styles/default/xenforo/smilies/FeltTip/whiteflag.png" class="smilie" loading="lazy" alt=":whiteflag:" title="Whiteflag :whiteflag:" data-shortname=":whiteflag:" /></span></span></p></blockquote><p></p>
[QUOTE="UPSviking, post: 670475, member: 25907"] [COLOR=#2e2e2e][FONT=Verdana]"UPS salespeople work on "commission"[/FONT][/COLOR] [FONT=Verdana][COLOR=#2e2e2e]Have you heard the term "contract compliance"--UPS does a very bad job with this"[/COLOR][/FONT] [COLOR=#2e2e2e][FONT=Verdana]Where I come from our BD can under no circumstance make an contract that we don't make any money on, like everything at UPS they too have to get their superiors to sign off on all their work, I agree that we are not making as much as we used to, but in my region we still make money on all of our accounts.[/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]"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.[/FONT][/COLOR] [FONT=Verdana][COLOR=#2e2e2e]BUT --After the 97 stike most customers keep an account with UPS and fedx.[/COLOR][/FONT] [FONT=Verdana][COLOR=#2e2e2e]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.[/COLOR][/FONT] [FONT=Verdana][COLOR=#2e2e2e]The ups driver gets zone 2 and 4 packages --The fed x driver gets zones 6 and eight.[/COLOR][/FONT] [FONT=Verdana][COLOR=#2e2e2e]The customer gets highly discounted shipping from two companies."[/COLOR][/FONT] [COLOR=#2e2e2e][FONT=Verdana]Again, all of my regions contracts are based on volume guarantied from the customer, so you example above does not apply.[/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]We have an lot of customers that ship with both TNT,DHL and UPS and they are priced accordingly, we may on occasion bid for all of their business, but they still pay higher rates than if they where UPS exclusive.[/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]"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.[/FONT][/COLOR] [FONT=Verdana][COLOR=#2e2e2e]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 !![/COLOR][/FONT] [FONT=Verdana][COLOR=#2e2e2e]Cash flow or no --simple math is TOTAL CPP vs TOTAL RPP."[/COLOR][/FONT] [COLOR=#2e2e2e][FONT=Verdana]I will try to make it simple[/FONT][/COLOR][COLOR=#2e2e2e][FONT=Verdana]:[/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]Say that we tomorrow get rid of 30-40% of the customers that we are not making "enough" on as you put it, will you not agree that the B767 still has to land at the airport, and will you not agree that the feeder still has to leave the hub?.[/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]An example:[/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]Yesterday I delivered 2 packages to an customer, one Amazon and one Air letter from his uncle in Brazil, tomorrow after we got rid of the heavily discounted client Amazon I will only deliver the Air letter from his uncle, We will make the 25$ of the letter but will be missing the 30 cents from the Amazon, does that not increase the cost per piece?[/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]I may be missing your point, but UPS introduced consolidated delivery for a reason, to save money spent per piece delivered.[/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]Sorry for the long reply everybody.....:whiteflag:[/FONT][/COLOR] [/QUOTE]
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