If UPS was a starting small company, could it survive?

[LED]

Fedex goes out and targets the big shippers. They care nothing about the "mom and pop" shippers who send out 10 packages/week. They want the big shippers with trailer loads of volume. UPS knows that Fedex is constantly visiting the big accounts and trying to win them over.

UPS is not stupid (although that could be debated), they know that they have to keep the big shippers happy to remain profitable. Unfortunately keeping the big shippers happy sometimes hurts the small shippers.

That is why, when you turn in a sales lead, UPS calls and asks the customer how many packages/week they are going to ship. If the number is low, then it will be hard to get someone to even go out and see them. They are spending all their time trying to keep the big accounts happy, or win new ones.

So if UPS was just starting then they might make it if they went after the big accounts, paid there employees less, and had a huge sum of money in the bank.

UPS is profitable, and provides good service because of the infrastructure of hubs and centers that they have. They would have to start from scratch and build every center and sort facility, which would be very costly.

 

[klein]

Fedex goes out and targets the big shippers. They care nothing about the "mom and pop" shippers who send out 10 packages/week. They want the big shippers with trailer loads of volume. UPS knows that Fedex is constantly visiting the big accounts and trying to win them over.

UPS is not stupid (although that could be debated), they know that they have to keep the big shippers happy to remain profitable. Unfortunately keeping the big shippers happy sometimes hurts the small shippers.

That is why, when you turn in a sales lead, UPS calls and asks the customer how many packages/week they are going to ship. If the number is low, then it will be hard to get someone to even go out and see them. They are spending all their time trying to keep the big accounts happy, or win new ones.

So if UPS was just starting then they might make it if they went after the big accounts, paid there employees less, and had a huge sum of money in the bank.

UPS is profitable, and provides good service because of the infrastructure of hubs and centers that they have. They would have to start from scratch and build every center and sort facility, which would be very costly.

Thats another part of the problem.
That residential small kid, might be the future person who makes that decision, wether it be fedex or UPS, or even someone else.

Even current rezis.... you don't think one of them is in charge of a big account somewhere ?
Ofcourse they are !
I delivered personally (rezi) to a huge Mac Donalds owner, that has 5 or 6 franchises.

Everything we do counts. Even the small ones !

 

[brownman15]

My deliveries, including residentials, are usually done by 1430, which is when I start my pickups.

you are one of the few i dont finishing delivering until 1900 1930 and i am not the only one in my center.

 

[klein]

you are one of the few i dont finishing delivering until 1900 1930 and i am not the only one in my center.

We do know, there are some gravy runs out there.
Start p/u at 14:30 then go home ! Thats gravy !

 

[BLACKBOX]

We do know, there are some gravy runs out there.
Start p/u at 14:30 then go home ! Thats gravy !

That sounds like a typical day for FDX.

Can a start-up company survive in this industry? Short answer..no. If you were looking to get into the package delivery game and you don't have the technology or the logistics to move freight nationwide, you will just be another company who tried and failed.

If you add just UPS rev's (51 bil) and FDX rev's (35 bil) you can see just with these two companies that you'll have to deal with the big boys and their price structure.

If you wanted to start a company delivering packages it may be just local and you probably all know how many companies are competing in that market. Interesting yet unrealistic.

 

[UpstateNYUPSer(Ret)]

We do know, there are some gravy runs out there.
Start p/u at 14:30 then go home ! Thats gravy !

What is this "we" stuff? Clueless, in case you haven't figured it out yet, let me spell it out for you:

YOU DON'T WORK AT UPS ANYMORE!! YOU MADE A STUPID DECISION AND NOW YOU ARE LIVING OFF OF THE CANADIAN GOVERNMENT!!

 

[klein]

What is this "we" stuff? Clueless, in case you haven't figured it out yet, let me spell it out for you:

YOU DON'T WORK AT UPS ANYMORE!! YOU MADE A STUPID DECISION AND NOW YOU ARE LIVING OFF OF THE CANADIAN GOVERNMENT!!

Okay, "we" wasn't a right response.
And, I do not live off the Canadian government.
It's called Insurance here, that we must pay with each and every paycheck (kinda like healthcare).

I'm just getting a part of my payments back, that I paid for into the years.
And, every single paycheck, it has been taken off , (in writing and in dollars).
There is no private insurer available for that here (again like our healthcare).
But, it's a law,and monopoly, that we pay into it.

 

[playdoh1]

Costs go down with the IC model but does the quality go up? I have never heard anyone describe FedEx Ground as a customer service oriented company.

There certainly isn't any quality now. Customer service? Not hardly. The last package I had delivered to my house was pitched at my door from halfway up the driveway. I was in the driveway in plain sight, but the driver was oblivious because he was yacking on his cell phone. He did seem embarrassed though after I hollered at him and he finally noticed me. Fortunately I'm easy going and actually laughed at the absurdity of it.

 

[NHDRVR]

Yeah, they could but they couldn't use their current business model. Someone already mentioned it but UPS would have to be non-union, at least to start, and that is simply to keep costs manageable.

I always felt, along with most everyone else, that UPS stays in business in spite of itself. We all know what I mean...

We are such a cash heavy company that it's easier for us to ride out the economy since they save money every time they cut a run. We all know the numbers... Cheaper OT instead of another route.

So, yes, they could probably survive but I doubt many of us would get re-hired...

 

[brownmonster]

Time for a confession: I lifted that idea from another upser.

In 2003, then UPS CEO Michael L. Eskew wrote, “…when it comes to customer loyalty, many companies are asking the wrong question. They ask, ‘How do I make my customers loyal to my company?’ What they should be asking is: ‘How do I make the company loyal to my customers?’ A flipping of the nouns makes all of the difference.” Eskew goes on to note, “if we’re more concerned with how our company can demonstrate loyalty to our customers, we’re more inclined to make fundamental changes in our business process to accommodate our customers.”

It sounded good to him when he said it. Too bad putting it into practice didn't concern him.

 

[purplesky]

and to add to this:

Why do you think dhl is still everywhere else in the world, operating fully normal?
Even the borders south and north of america , (canada and mexico).

Someone on here should be able to answer that one.

the german post office

 

[purplesky]

Its my opinion that you are dillusion and UPS will be just fine when the economy recovers. UPS' efficency trumps any cost-saving measures that Fed-Ex enjoys.

I don't need to see the numbers. My opinion is based on the eye-ball test. We have six UPS drivers and one Fed-Ex ground driver in my town. So, my eyeballs tell me if a company can make money with one driver in a town, the other is making much more with six drivers in the same area.

I'll start worrying when the town is down to 4 drivers. I don't see this happening because 3 days of the last 3 weeks we added 2 routes to make 8 drivers in the town.

If UPS was really desparate for profit, they would have just eliminated the 2 extra routes.

Its not about business where I deliver. My busineses are getting a healthy share of parcels and my house calls are out of control! Throw in LL Bean now, and I'm stopping at every other house!

If there is a problem at UPS, maybe its the business plan?

I agree. Fed Ex is not adding routes in my area and the ground and Express driver are just not that busy. UPS could easily add another car in my zip code and eliminate the 12 hour days we are working.

 

[1989]

They wouldn't survive if they started in the USA. I think most of thier good profits come from overseas, like a person named "Darkangel" , from the Phillipines, that only gets paid $12 a day working for UPS there.
Thats how UPS makes thier money.
Basically, most of it's workload is outsourced.

Because you don't believe in start up capital. No capital = no new companies = no new jobs = no growth = less tax revenue = a spiral into a depression.

 

[klein]

Because you don't believe in start up capital. No capital = no new companies = no new jobs = no growth = less tax revenue = a spiral into a depression.

Wow ! What a statement.
Why haven't you started a business ?

Maybe , because of no start up capital ? Or what else stops you ?

 

[pretzel_man]

Start-up companies always have to employ different strategies than a giant who has been in the business for over a century. Small companies have different business plans than large ones, as it should be if either are to be successful. I think the brown hound was correct when he said, no one matches UPS's efficiency. The ability to operate efficiently is greatly enhanced by UPS's huge size.

All UPS needs is more packages. Everyone knows that. The more packages we have, the greater potential we have for greater efficiency. However, our inability to maintain service is what has cost us business, and until we make a real commitment to improved service, we can expect no big increase in volume.

All customers want is for their package to be delivered on time and intact. If we break or lose their package, they have a reasonable expectation that we will pay their claim promptly. Businesses would like to have their deliveries in the mornings, and, generally, would like to have their pickups made in the afternoon. Residential delivery customers really don't care when we come by, but would like us to be consistant.

More than anything, customers would like to think we care about their business and their packages. If we were loyal to our customer's needs, our customers would be loyal to UPS.

Dusty,

I'm not sure if you are aware of this, but service today is at an all time high. There is a program called SEAS which measures the service of every single package. If the package is late, it shows where the failure occurred and the results show up on the balanced scorecard.

Of course, it does not measure a business ground package that is delivered at 4:00 as late. SEAS also has a "no excuses" report. Its this report that shows up on the scorecard. On this report it does not matter the reason for a late package. Even a not in attempt shows as late on that report.

Our Guaranteed Service Refunds as a company are tremendously lower today than a few years ago.

P-Man

 

[klein]

Dusty,

I'm not sure if you are aware of this, but service today is at an all time high. There is a program called SEAS which measures the service of every single package. If the package is late, it shows where the failure occurred and the results show up on the balanced scorecard.

Of course, it does not measure a business ground package that is delivered at 4:00 as late. SEAS also has a "no excuses" report. Its this report that shows up on the scorecard. On this report it does not matter the reason for a late package. Even a not in attempt shows as late on that report.

Our Guaranteed Service Refunds as a company are tremendously lower today than a few years ago.

P-Man

What a name they called that one ! Sea (see) your package. NOPE. LOL
GOT could have been another good name or GET.

 

[Raw]

We do know, there are some gravy runs out there.
Start p/u at 14:30 then go home ! Thats gravy !

LOL!! My new route ( old route went to another building ) my 4 pickups are in trace and last resi del at 1800 the latest! Best route in 20 years!

 

[purplesky]

Dusty,

I'm not sure if you are aware of this, but service today is at an all time high. There is a program called SEAS which measures the service of every single package. If the package is late, it shows where the failure occurred and the results show up on the balanced scorecard.

Of course, it does not measure a business ground package that is delivered at 4:00 as late. SEAS also has a "no excuses" report. Its this report that shows up on the scorecard. On this report it does not matter the reason for a late package. Even a not in attempt shows as late on that report.

Our Guaranteed Service Refunds as a company are tremendously lower today than a few years ago.

P-Man

P-man on UPS paper you can say service is better today but UPS HAS THOUSANDS OF STOPS MISSED EVERYDAY BECAUSE OF MISLOADS AND BAD PAL LABELS. 10 YEARS AGO MISSED STOPS WERE UNHEARD OF BUT NOW ITS JUST PART OF THE NEW UPS. THERE ARE NOT ENOUGH DRIVERS ON THE ROAD TO PROVIDE GOOD SERVICE. NOT LONG AGO A CUSTOMER COULD ACTUALLY RELY ON A GROUND DELIVERY BEING MADE IN A REASONABLE AND CONSISITENT TIME WINDOW TO RUN THEIR BUSINESS. THOSE DAYS ARE GONE. WE ALL KNOW FIRST HAND AS DRIVERS. SO NO NEED TO SPIN THE TOPIC OF BAD SERVICE IN 2009.

 

[hshi]

Here is a scary thought...
If UPS looses more market share, That opens the door for the US Postal Service to make a comeback.
Just look at their new package campaign..."if it fits, It ships".
Either that or FedEx takes over.

hshi

 

[bluehdmc]

the german post office

Which was privatized in 1995