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TNT Deal?? & Billion Dollars?? What??
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<blockquote data-quote="Floridacargocat" data-source="post: 1080576" data-attributes="member: 6168"><p>IMHO trying to buy TNT was a classic exercise of buying distribution, which (as has been proven multiple times) is far cheaper than trying to establish distribution. Buying transport capacity was never an issue. What went wrong was a complete misreading of the minds and attitudes of the Eurocrats in Brussels. And what really hurts, is that that UPS still has to pay a termination fee of USD 200 mio for walking away (even though the proposed deal was put to rest by the Eurocrats in Brussels for whatever reasons). Unfortunately this will have an impact on the financial performance of UPS in 2013. Recovering from this will require what? Lowering of costs? Higher throughputs (while maintaining the same facilities and capacities and not changing one jota in the resources, or will we go to constant peak flow rates with peak staffing)? Reduction of damages as part of the lowering of costs? Increase in volume, especially in countries with a strong currencies to compensate for the relative weakness of the USD? Increase in the major development markets such as China, India, Brazil, Europe (Deutsche Bundespost/DHL is a significant participant in this market). Production improvements will have less of an impact than compared to favourable financial market conditions.</p><p>IMHO, UPS has to change/adjust the envelope of operational conditions in order to reduce costs. This is not contradictory. </p><p>And from my observations on the ground, it begins with choosing the right people for positions like loaders and similar. We need people on the ground, willing to work very hard, and willing to invest time until they can enjoy the benefits, which UPS does provide (such as health insurance, retirement benefits etc.). But that is a long way to go, and in contradiction to today's expectation of instant gratification.</p></blockquote><p></p>
[QUOTE="Floridacargocat, post: 1080576, member: 6168"] IMHO trying to buy TNT was a classic exercise of buying distribution, which (as has been proven multiple times) is far cheaper than trying to establish distribution. Buying transport capacity was never an issue. What went wrong was a complete misreading of the minds and attitudes of the Eurocrats in Brussels. And what really hurts, is that that UPS still has to pay a termination fee of USD 200 mio for walking away (even though the proposed deal was put to rest by the Eurocrats in Brussels for whatever reasons). Unfortunately this will have an impact on the financial performance of UPS in 2013. Recovering from this will require what? Lowering of costs? Higher throughputs (while maintaining the same facilities and capacities and not changing one jota in the resources, or will we go to constant peak flow rates with peak staffing)? Reduction of damages as part of the lowering of costs? Increase in volume, especially in countries with a strong currencies to compensate for the relative weakness of the USD? Increase in the major development markets such as China, India, Brazil, Europe (Deutsche Bundespost/DHL is a significant participant in this market). Production improvements will have less of an impact than compared to favourable financial market conditions. IMHO, UPS has to change/adjust the envelope of operational conditions in order to reduce costs. This is not contradictory. And from my observations on the ground, it begins with choosing the right people for positions like loaders and similar. We need people on the ground, willing to work very hard, and willing to invest time until they can enjoy the benefits, which UPS does provide (such as health insurance, retirement benefits etc.). But that is a long way to go, and in contradiction to today's expectation of instant gratification. [/QUOTE]
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