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<blockquote data-quote="bad company" data-source="post: 649177" data-attributes="member: 9308"><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">The shipper is only offering what consumers are looking for. Just like every other business in the world, it is the consumer/customer that dictates what services and/or merchandise is offered. That whole "Supply vs. Demand" thing; remember that from 4th grade?</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">The increase in basic volume can be attributed to (in no particular order): </span></span></p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">A) Additional volume and new accounts won </span></span></p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">B) Volume in which UPS already had, Ground or higher service levels, in which account holders (shippers) are downgrading.</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">This trend is being paralleled with our higher premium service levels. There is a dramatic reduction in 1DA volume. This shift in service levels resulted in our pilots to agree to an overall reduction of hours worked in lieu of layoffs... remember that? </span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">Current economic trends are forcing companies to cut costs. UPS has taken the same approach in guiding the company... but you already know that. </span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">Consumers have decided that they do not need their products the very next day; they can afford to wait a day or two. Consequently, ground shipments have not been affected nearly as bad as their respective air counterparts. </span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">The very same thing is happening with some of our larger retail accounts. They have determined that their customers can wait for their orders and receive them in 5-7 days instead of the average of 2-4. </span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">USPS and FedEx SmartPost can offer a solution that fits their needs at a significantly lower price. UPS can choose to offer a comparable service at a competitive price, or UPS can lose all of that volume to FedEx and the USPS.</span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">Once the economy picks back up, consumers will want their products as soon as possible. Internet retailers must be able to offer fast shipping and order fulfillment in order to compete with other store front retailers. Consumers will demand faster service, and shippers will oblige; thus resulting in an increase in premium service level shipments and ground level packages. This change in demand will result in a decrease in BASIC level shipments. </span></span></p><p> </p><p><span style="color: #2e2e2e"><span style="font-family: 'Verdana'">Every thing is cyclical... sort of like your little <em>Lion King</em> Circle of Life analogy.</span></span></p></blockquote><p></p>
[QUOTE="bad company, post: 649177, member: 9308"] [COLOR=#2e2e2e][FONT=Verdana]The shipper is only offering what consumers are looking for. Just like every other business in the world, it is the consumer/customer that dictates what services and/or merchandise is offered. That whole "Supply vs. Demand" thing; remember that from 4th grade?[/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana] [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]The increase in basic volume can be attributed to (in no particular order): [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]A) Additional volume and new accounts won [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]B) Volume in which UPS already had, Ground or higher service levels, in which account holders (shippers) are downgrading.[/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana] [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]This trend is being paralleled with our higher premium service levels. There is a dramatic reduction in 1DA volume. This shift in service levels resulted in our pilots to agree to an overall reduction of hours worked in lieu of layoffs... remember that? [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana] [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]Current economic trends are forcing companies to cut costs. UPS has taken the same approach in guiding the company... but you already know that. [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana] [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]Consumers have decided that they do not need their products the very next day; they can afford to wait a day or two. Consequently, ground shipments have not been affected nearly as bad as their respective air counterparts. [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana] [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]The very same thing is happening with some of our larger retail accounts. They have determined that their customers can wait for their orders and receive them in 5-7 days instead of the average of 2-4. [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana] [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]USPS and FedEx SmartPost can offer a solution that fits their needs at a significantly lower price. UPS can choose to offer a comparable service at a competitive price, or UPS can lose all of that volume to FedEx and the USPS.[/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana] [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]Once the economy picks back up, consumers will want their products as soon as possible. Internet retailers must be able to offer fast shipping and order fulfillment in order to compete with other store front retailers. Consumers will demand faster service, and shippers will oblige; thus resulting in an increase in premium service level shipments and ground level packages. This change in demand will result in a decrease in BASIC level shipments. [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana] [/FONT][/COLOR] [COLOR=#2e2e2e][FONT=Verdana]Every thing is cyclical... sort of like your little [I]Lion King[/I] Circle of Life analogy.[/FONT][/COLOR] [/QUOTE]
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