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Walmart using UPS for Same-Day Delivery in Select Markets
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<blockquote data-quote="brownIEman" data-source="post: 1040266" data-attributes="member: 14596"><p>I can't see any way to make that work. Air drivers would be a huge looser for UPS, as the union would claim this was ground volume. And they would be correct. Sure it is the same day, but it is picked up and delivered in one area, always on the ground. Which would not only cost UPS ground rates for these shags (low volume of stops, high miles) it would increase the cost of UPS delivering the air routes for the morning as well (deliver one ground piece, get paid ground the entire day). Shags are by far the most costly packages for UPS to deliver. So, by suggesting offering sure post prices to win this volume, you are suggesting we offer our lowest rates (lowest income to UPS) for what would be some of our highest cost packages. We would most likely lose money on every package. When you are losing money on each unit, getting more and more of those units does not help.</p></blockquote><p></p>
[QUOTE="brownIEman, post: 1040266, member: 14596"] I can't see any way to make that work. Air drivers would be a huge looser for UPS, as the union would claim this was ground volume. And they would be correct. Sure it is the same day, but it is picked up and delivered in one area, always on the ground. Which would not only cost UPS ground rates for these shags (low volume of stops, high miles) it would increase the cost of UPS delivering the air routes for the morning as well (deliver one ground piece, get paid ground the entire day). Shags are by far the most costly packages for UPS to deliver. So, by suggesting offering sure post prices to win this volume, you are suggesting we offer our lowest rates (lowest income to UPS) for what would be some of our highest cost packages. We would most likely lose money on every package. When you are losing money on each unit, getting more and more of those units does not help. [/QUOTE]
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Walmart using UPS for Same-Day Delivery in Select Markets
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