UPS to Spend More Than $100 Million on Shipping Changes - Bloomberg
United Parcel Service Inc. (UPS) said it will spend more than $100 million to improve peak-period service after a late surge in online Christmas shopping caused missed deliveries that boosted costs.
With the delivery volume growth rate during the holiday period almost twice what UPS had projected, the company had to add 30,000 more workers than planned, boosting fourth-quarter expenses by as much as $150 million, Chief Executive Officer Scott Davis said today on a conference call. Some packages still didn’t arrive at their destinations by Christmas, causing refunds that sliced quarterly revenue by $50 million.
United Parcel Service Inc. (UPS) said it will spend more than $100 million to improve peak-period service after a late surge in online Christmas shopping caused missed deliveries that boosted costs.
With the delivery volume growth rate during the holiday period almost twice what UPS had projected, the company had to add 30,000 more workers than planned, boosting fourth-quarter expenses by as much as $150 million, Chief Executive Officer Scott Davis said today on a conference call. Some packages still didn’t arrive at their destinations by Christmas, causing refunds that sliced quarterly revenue by $50 million.
