How should company fix peak problems?

Catatonic

Nine Lives
True, but if we pick up the customers package, we accept the responsibility Tti deliver it on time. Just like any other day of the year, except without sufficient staffing.
It was an attempt at humor but with a dash of truth.
I later on said UPS should have refused Amazon's extra volume resulting from FedEx saying No to the extra volume.
 

Catatonic

Nine Lives
We used to run fatter and absorbed the Peak crush better before we went Public. We certainly were a profitable and productive company prior to that change.

Gee, seems like it was just a few months ago when everyone was talking about UPS having the biggest profits in history. :wink-very:
 

HEFFERNAN

Huge Member
BOTTOM LINE

The CEO and Board of Directors have taken every employee (union and non-union) and wringed every drop of blood, sweat, and tears we had in us.

THEY STILL FAILED
THEY ARE ACCOUNTABLE

I'm ashamed of these headlines and know that every finger is pointed at ATLANTA not at the hardest working union employees in the business !!
 

104Feeder

Phoenix Feeder
Gee, seems like it was just a few months ago when everyone was talking about UPS having the biggest profits in history. :wink-very:

Yes, but maybe those record profits have come at a too great of a cost. If we are perceived as too lean and not being able to handle the rush, maybe shippers will turn somewhere else or one of our competitors will take up the slack. I count us as very lucky that Fedex had the same issues we did as that could have put a few nails in our coffin. Greed has killed a lot of companies.
 

Catatonic

Nine Lives
Yes, but maybe those record profits have come at a too great of a cost. If we are perceived as too lean and not being able to handle the rush, maybe shippers will turn somewhere else or one of our competitors will take up the slack. I count us as very lucky that Fedex had the same issues we did as that could have put a few nails in our coffin. Greed has killed a lot of companies.
If FedEx had pulled their weight UPS probably would have done pretty well except for weather related issues.

As for GREED, it is as much Amazon, WalMart and the other big shippers that force the prices down so low as anything UPS does.
 

HEFFERNAN

Huge Member
It was an attempt at humor but with a dash of truth.
I later on said UPS should have refused Amazon's extra volume resulting from FedEx saying No to the extra volume.

Your humor gets less funny the more you post !!
UPS failed so admit it
The shippers could take a bag of turd and tape a dime to it and UPS would guarantee delivery
The business structure has limits and is due to running lean and mean with the recession in our rear view mirror
 

104Feeder

Phoenix Feeder
If FedEx had pulled their weight UPS probably would have done pretty well except for weather related issues.

As for GREED, it is as much Amazon, WalMart and the other big shippers that force the prices down so low as anything UPS does.
Can't really fault them for trying to get the best deal. No one is holding a gun to Scott Davis' head to get him to sign that contract. I'd like to see us play hardball and keep demanding more and more volume from Amazon in exchange for the lower rates as Amazon is like the guy in the whorehouse who sees a different girl every night.
The weather was definitely a factor and as we really have no weather to speak of in sunny AZ I have no idea how to deal with that.
 

Returntosender

Well-Known Member
UPS will not fix the problem for peak 2014, by hiring even more divers/rental cars. ATL will just say the costs for additional drivers/ rental cars exceed the budget. ATL solution for peak 2014 will be change the delivery clause dates and add next day/2nd day air to the clause.

2013 UPS guarantee delivery clause "UPS does not guarantee Christmas delivery for ground shipping after Dec. 11." 2014 peak UPS will just change the dates and wording. " UPS does not guarantee Christmas delivery for ground shipping after Novermber 29. UPS does not guarantee delivery for Next day/2nd day air packages after Dec 5."

What are customers/shippers going to do about it, move to Fed Ex? Express will just mirror UPS changes. Either way customers will get screwed. An I.E. person in my building once said. "UPS basis everything off historical data." Customers and shippers just have to deal with UPS policy changes, service failures. They dealt with in peak 2013. They will deal with it peak 2014.


As for Amazon packages in the UPS system that were delivered late. Bezos might add this option on the Amazon website. Customers can now pick up items at Amazon fulfillment centers, at a additional discounted listed price.
 

Feeders101

Well-Known Member
If FedEx had pulled their weight UPS probably would have done pretty well except for weather related issues.

As for GREED, it is as much Amazon, WalMart and the other big shippers that force the prices down so low as anything UPS does.

All in all, we did pretty good despite ourselves. I don't know what the Amazon contract entails. But I'm guessing we had no choice but to take the extra volume. They did free shipping the 23rd and we really don't get any extra revenue for that. We have a contract with them that pay a certain amount. The other 60 or 70 % of our customers are the ones upset...
 

104Feeder

Phoenix Feeder
Hoaxster, in regard to Amazon I'm reminded of why a friend of mine said he wouldn't sell to Costco. Costco demanded that he meet certain volume requirements and accept returns for any reason. He said that if Costco wanted to they would terminate the agreement leaving him with the additional product and expanded manufacturing facilities with no one to sell to. I think UPS is big enough and has a good plan to reduce our size (which we unfortunately were able to fully implement during the Great Recession) if we were to tell Amazon to take a hike. It doesn't seem like Fedex would be able to do that as efficiently. Perhaps the answer lies in returning to our roots of small Mom & Pop garage businesses and stealing customers away from USPS that use the flat rate BS for eBay shipments. I hear lots of complaints about our high prices, maybe they wouldn't be as high if we weren't just breaking even on Amazon. Well, at least I'd like to think they wouldn't be...
 

Catatonic

Nine Lives
Perhaps UPS should make their plans next peak based upon a number of packages that will be accepted from the largest shippers each day of peak and then refuse to accept any number above that from the shippers.
FedEx does this, especially when UPS goes on strike, and again this peak with Amazon.
When Amazon, Walmart and other large retailer shippers see UPS is serious, then they will initiate programs to encourage their customers to buy early rather waiting until the last couple of days before Christmas.
 

MassWineGuy

Well-Known Member
Different locations had different weak points, but for my center northeast of Boston, the main one I noticed (having ridden with numerous drivers during peak) was really lousy preloading. Seems like they literally were throwing the packages on instead of sorting at all. Not only did this cause lots of misloads, but drivers had to spend a ton of time in the back sorting sections and trying to locate packages. What to do? Hire more loaders and give them each fewer trucks?

UPS should also buy more package cars and have them in reserve, since there weren't enough trucks even with the rentals. I was hired as a seasonal driver but worked as a helper because, I hope, there wasn't a package car available for me.
 

oldngray

nowhere special
Perhaps UPS should make their plans next peak based upon a number of packages that will be accepted from the largest shippers each day of peak and then refuse to accept any number above that from the shippers.
FedEx does this, especially when UPS goes on strike, and again this peak with Amazon.
When Amazon, Walmart and other large retailer shippers see UPS is serious, then they will initiate programs to encourage their customers to buy early rather waiting until the last couple of days before Christmas.

Nice idea but almost impossible to monitor when it involves companies shipping from multiple locations.
 

TUT

Well-Known Member
Put a reasonable "Order By/Ship By" Deadline out to the industry. If you order after that, don't expect if for Christmas, even though it may still make, don't count on it. Set expectations. There is no reason people of this world can't understand and deal with something like this.
 

Catatonic

Nine Lives
Put a reasonable "Order By/Ship By" Deadline out to the industry. If you order after that, don't expect if for Christmas, even though it may still make, don't count on it. Set expectations. There is no reason people of this world can't understand and deal with something like this.
This makes sense ... UPS needs to be proactive in managing expectations.
 

Catatonic

Nine Lives
All in all, we did pretty good despite ourselves. I don't know what the Amazon contract entails. But I'm guessing we had no choice but to take the extra volume. They did free shipping the 23rd and we really don't get any extra revenue for that. We have a contract with them that pay a certain amount. The other 60 or 70 % of our customers are the ones upset...
Exactly, UPS is letting these greedy shippers destroy the rest of our customer base.
Amazon does not care about UPS or their employees ... in fact, they seem to hate us.
Amazon may be the biggest shipper but they are also the the single worse enemy of UPS as well.
 

cb1969

Well-Known Member
use the right amount of personnel needed to accomplish the task...only so much more can be done with so much less....
 
This makes sense ... UPS needs to be proactive in managing expectations.

A smart move would have been to press release nationwide the problems the storm caused to service. "Situations beyond our control have caused delays. Don't wait till the last minute." If folks ignore that well then they got what's coming to them.
 

cb1969

Well-Known Member
all we do is deliver packages...period...if we don't have enough resources to get them all delivered from big Amazon to a Christmas card from grandma...we are in the wrong business...Management doesn't run a full staff for the volume it has everyday...maximize profits, well this is what happens when the rubber meets the wall!!!
 
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