Global supply chain by Amazon.

Discussion in 'UPS Discussions' started by kingOFchester, Feb 9, 2016.

  1. kingOFchester

    kingOFchester Well-Known Member

    nough said
    Last edited: Feb 9, 2016
  2. Thatguy123

    Thatguy123 Member

  3. MyTripisCut

    MyTripisCut Well-Known Member

    Interesting article. I saw an Amazon delivery van almost drive head on into a minivan full of kids a couple days ago. Wonder if they will hire the same type of pilots and feeder drivers as their package van guys.

    I do fear this company. No joke.
  4. kingOFchester

    kingOFchester Well-Known Member

    I have seen drivers in my center do crazy driving like this. We are a bonus center.
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  5. MyTripisCut

    MyTripisCut Well-Known Member

    Me too lol. I am serious, their vans are full in my neck of the country. Scary stuff.
  6. Orion inc.

    Orion inc. I like turtles

    Here's how ups and fedex defeat this:

    Amazon: "we are starting a global supply chain"

    Ups and Fedex: " ok. Your rates are now full retail regardless of volume. No more special pick ups, feeders or commit times or planes and ARS services and call tags are no longer a priority . This will be going in to effect on your next shipping contract.

    Amazon:"_______ ummm there goes our thin profit margins and customers because we can't get the USPS (who owns no planes) or local region carriers to handle our volume. We can't deliver it yet because we outsource all our delivery operations.

    Game over. It's coming.

    Ups is already planning to walk away from Amazon in less than 5 years. Fedex is rumored to want to drop them sooner. Apparently Fred Smith doesn't like bigger scumbags then him.
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  7. Dr.Brown

    Dr.Brown Swollen Member

    ooo... I've got a sales lead!!
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  8. FrigidFTSup

    FrigidFTSup Resident Suit

    The USPS doesn't need planes, FedEx carries it all. So FedEx would still get that business, just in a different way.

    Not to mention the DOJ would probably investigate us for Anti Trust violations.
  9. brownmonster

    brownmonster Man of Great Wisdom

    People far above me are paid quite well to worry about this.
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  10. Orion inc.

    Orion inc. I like turtles

    Don't think for a minute that fedex won't limit that volume though.

    I don't think telling Amazon that we aren't going to take their volume anymore or if we do, we will charge more, warrants Antitrust violations. We aren't obligated to take their business at break even or a loss. I think UPS needs to push back on them because Amazon seems to be able to go out into the media and say whatever they want regarding our business.

    It's time to "phase " them out either by charging more or just walking away over time. I'm sure there is a strategy in place. A 100 year plus company isn't going to go down without a fight.

    Also isn't it great to see another Amazon thread????
  11. FrigidFTSup

    FrigidFTSup Resident Suit

    I'm willing to bet there is a clause in the contract saying they have to take a certain amount of volume. Plus, if they're flying planes half empty, and can make money on filling it with USPS volume, they're going to.
    It's not antitrust if we just say bugger off. It's if we AND FedEx do. It looks fishy at first. I'm not saying we'd get fined. But I wouldn't doubt there'd be an investigation.
  12. OrioN

    OrioN Active Member

  13. clean hairy

    clean hairy Well-Known Member

    I could see a price increase which everyone else has to pay being put in place for Amazon as well.
    After all, why should they be exempt from price increases?
  14. Clock Sucker

    Clock Sucker I handle a lot of packages

    Being in Montana, I am not worried about amazon at all. Amazon would have to utilize ups or fedex to get their stuff delivered in a state like ours
  15. kingOFchester

    kingOFchester Well-Known Member

    Yes, the same people that are forcing Orion regardless if we can beat the miles. The same company that is so short sighted that they cut trips and have failed service to meet todays numbers vs tomorrows growth or even retention of customers. The same company that pushes so much volume thru Preload that packages are getting damaged. I could go on.

    I am not counting on those far above us, they haven't a clue of what is going on at the center level.
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  16. kingOFchester

    kingOFchester Well-Known Member

    I love how most of us have no faith in the powers above, until we talk about Amazon.

    Is ups to big to fail? Kodak, the inventor of the digital camera was once considered to big to fail.
    Last edited: Feb 10, 2016
  17. Scuba Steve

    Scuba Steve Active Member

    Is Amazon going to be a competitor?
    Amazon is looking to cut cost and increase profitability. Amazon won't be hauling Overstock, Wayfair, ebay, Best Buy, or any of their competition. That is unless they buy them like they did Zappos.

    There is no way Amazons competition would support an Amazon Delivery service to help their competition be more profitable.

    Now the down side. There are a lot of small businesses that fulfill orders for Amazon outside of the Amazon DC's. I'm sure those businesses would use an Amazon Delivery service or an approved carrier to take advantage of competitive rates.

    Bottom line is I'd be concerned about lost revenue. Lost volume of this size would lead to lay offs at UPS. The company would find a way to adjust and maintain by sacrificing payroll.
  18. kingOFchester

    kingOFchester Well-Known Member

    Very well stated. We have seen concessions in contracts already, just the beginning. More competition, more concessions to stay competitive.
  19. Browndriver5

    Browndriver5 Active Member

    Does anyone know when Amazons contract runs out?
  20. Orion inc.

    Orion inc. I like turtles

    I don't think anyone believes ups is too big to fail but also we've been around over 100 years and logistics is not an easy infrastructure to build. If Amazon thinks they'll do it overnight like they try everything else, well they'll fail. They also are starting to spread themselves way too thin. They have major issues too. They are about to go through the "wal-mart" syndrome and that's not good. Don't think for a second that if we walked away from Amazon that would not hurt them either.