Global supply chain by Amazon.

Orion inc.

I like turtles
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.
Amazon revenue for ups is very small because of the discount. It would not hurt revenue but it would hurt loss of actual packages and jobs. That is the worrisome aspect. But ups was around before Amazon so I'm sure we could partner exclusively with many of their competitors and create a "premium " type relationship with them to compete against Amazon.
 

Orion inc.

I like turtles
Amazon doesn't need planes. They are building distribution centers within 1 day ground travel of every major metropolitan area.
They will unless they want to carry everything they sell in every single warehouse they own. That type of inventory isn't good business.

Not to mention Amazon 3rd party sellers would have to keep inventory in every Amazon warehouse in order to offer prime shipping. It's not logistical for them to do that.
 
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Faceplanted

Well-Known Member
I'm sure a huge percentage of their high sellers are being stored in these local warehouses. I do agree, they will need air service but they won't need us, they will be able to get by with their 20 767s.

There are and will be tons of sellers who don't do prime shipping, last 2 things I ordered weren't prime eligible.
 

Brownslave688

You want a toe? I can get you a toe.
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.
For failing to move a competitors volume?


I just don't see that happening.
 

Overpaid Union Thug

Well-Known Member
It's hard for me to believe that the empty suits in Atlanta have any plan or strategy in place for Amazon. Nothing that thinks long term anyway. They are too focused on the here and now. Or, more specifically.......how to get the stock price up here and now.

I mean this is a company that for two days in a row has instructed drivers in my center to deliver NDAs on trace and enter weather for the reason even thought the roads are bone dry from being salted so much. Some are white because there is so much salt. And let's not forget that they botched the TNT acquisition in Europe only for it to be gobbled up by FedEx at a much cheaper price. And ORION......HA!
 

Browndriver5

Well-Known Member
It's hard for me to believe that the empty suits in Atlanta have any plan or strategy in place for Amazon. Nothing that thinks long term anyway. They are too focused on the here and now. Or, more specifically.......how to get the stock price up here and now.

I mean this is a company that for two days in a row has instructed drivers in my center to deliver NDAs on trace and enter weather for the reason even thought the roads are bone dry from being salted so much. Some are white because there is so much salt. And let's not forget that they botched the TNT acquisition in Europe only for it to be gobbled up by FedEx at a much cheaper price. And ORION......HA!

Have you ever worked anywhere besides UPS? Every company has its flaws. Not every company makes the right business moves and make bad decisions from time to time. It's everywhere not just UPS
 

Brownslave688

You want a toe? I can get you a toe.
It's hard for me to believe that the empty suits in Atlanta have any plan or strategy in place for Amazon. Nothing that thinks long term anyway. They are too focused on the here and now. Or, more specifically.......how to get the stock price up here and now.

I mean this is a company that for two days in a row has instructed drivers in my center to deliver NDAs on trace and enter weather for the reason even thought the roads are bone dry from being salted so much. Some are white because there is so much salt. And let's not forget that they botched the TNT acquisition in Europe only for it to be gobbled up by FedEx at a much cheaper price. And ORION......HA!
Actually I would say ups is just the opposite. Almost all planning is done on a long term scale and very little on a day to day basis. At least as far as Atlanta goes.
 

Orion inc.

I like turtles
I'm sure a huge percentage of their high sellers are being stored in these local warehouses. I do agree, they will need air service but they won't need us, they will be able to get by with their 20 767s.

There are and will be tons of sellers who don't do prime shipping, last 2 things I ordered weren't prime eligible.

That won't be enough planes to cover both us and fedex.

I heard recently Ups wants to walk away from Amazon within 5 years. I'm pretty sure there is a strategy in place. I don't see Atlanta ignoring this.

If we noticed it in the media, I can pretty much guarantee you they knew about this before 2013.
 

redshift3

Member
I could see loosing a fair amount of air volume if they bring in other companies to use the service. Along with more hub automation there could certainly be less jobs.

However I would like to see them start carrying south shore furniture boxes and stacks of tires on their drones. UPS manhandles a lot of stuff that should be freight and moved with a forklift.

You have a package with 5,000 nuts and bolts? No problem and no tape required. Just dump it on the floor and we will have our employees put tape on it for you! All I'm trying to say is that we handle a lot of trash that I think no other company would be interested in taking care of.
 
Everyone is worried about amazon. Everyone thinks ups will fire drivers. I 9.5 daily and so do many many other drivers in my center. Seems like the lower stop counts would help all drivers out
 

MyTripisCut

Never bought my own handtruck
They will unless they want to carry everything they sell in every single warehouse they own. That type of inventory isn't good business.

Not to mention Amazon 3rd party sellers would have to keep inventory in every Amazon warehouse in order to offer prime shipping. It's not logistical for them to do that.
I hear that it will be a bit more extreme than that. They will keep a small inventory of "hot" items on their package cars for prime customers to click and order and then they dispatch the driver with the items already on his van/package car. Example :iphone8 is released. Vans are stocked with chargers, cases, earbuds, whatever is compatable with that release so it can be sold online and delivered within minutes. No return to building to pick it up.
 

Faceplanted

Well-Known Member
I hear that it will be a bit more extreme than that. They will keep a small inventory of "hot" items on their package cars for prime customers to click and order and then they dispatch the driver with the items already on his van/package car. Example :iphone8 is released. Vans are stocked with chargers, cases, earbuds, whatever is compatable with that release so it can be sold online and delivered within minutes. No return to building to pick it up.
Amazon is thinking far more advanced than we are when it comes to things like this
 

Dragon

Package Center Manager
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.

and with your gloom and doom...management got 100% MIP, not sure you posted a solid statement KOF.
 

Orion inc.

I like turtles
I hear that it will be a bit more extreme than that. They will keep a small inventory of "hot" items on their package cars for prime customers to click and order and then they dispatch the driver with the items already on his van/package car. Example :iphone8 is released. Vans are stocked with chargers, cases, earbuds, whatever is compatable with that release so it can be sold online and delivered within minutes. No return to building to pick it up.
The problem is Amazon is losing sight of its core business. Retail is very cut throat. Stocking a package car full of "potential " orders of popular items? That could either be good or bad. The shrink and theft on that using cheap contractors could hurt them.

They'd also need huge trucks to hold that inventory on top of delivering already packed orders. They would be better off opening "Amazon stores" and using that as dispatch sites.

But I guess their profit margins are so huge that they could make this all cost effective. Oh wait....
 

Orion inc.

I like turtles
Amazon is thinking far more advanced than we are when it comes to things like this
I think they're spreading themselves too thin and eventually investors are going to want to see much bigger returns for the years of no profit. When they call that in, Bezos will have a problem propping up his Ponzi scheme in that sense.

If ups was really wanting to take them out of the game, raise their rates to full retail. Amazon will hurt and won't have endless piles of money for all their "drone" ideas
 
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