What have you heard about the future of Surepost?

[upssalesguy]

UPS still has the right to deliver any surepost volume on UPS trucks...maybe if PAS does get rolled out correctly everywhere, it could be an option to keep the multiple package deliveries for a residential stop on the same truck.

 

[beentheredonethat]

The suggestion was for the determination to be made via computer, like PAS and other GPS assisted programs. I don't think anybody envisioned a worker with a map and pile of packages. The system that was suggested would be of no liability to the preload, as it would be business as usual. The ones going to the post office would still be bagged. The rest assigned a PAS label and loaded accordingly.

Bubblehead is correct in regards to what I meant. Let the SPA person scan the pkg. The computer will determine, for the package weather another package will be delivered to the stop or not, if yes, then it gives a PAL label with the HIN so the driver delivers the final mile. If the computer doesn't see any other physical or forecasted package for that stop, then it will go to the USPS and be bagged accordingly. That's phase one. If it works, (which I don't see why it couldn't). We can then make a determination of what other pkgs make sense and is economical for our driver to deliver the final mile. The only way I see something like this working is for the determination to be done at the delivery center.

 

[TUT]

It was on newzjunkie this morning. Apparently, one of the heads was saying this is an option.

Makes sense, they can't get down to 5 days, so they'll just go down to 3. If it goes down to 3, I think it's time to move...to a different country. Way too many things going way too backward. Is this America we are talking about? What a fail we are working on lately.

 

[rje]

The USPS talks about "partnerships" with UPS and FedEx, but the reality is that the USPS is required by law to take "Parcel Select" packages from anybody, "partners" or not. So the USPS isn't going to "opt out" of its "partnership" with UPS or anybody else.

That said, USPS personnel obviously can be cooperative or not. The USPS didn't like UPS' "cherry picking" with UPS Basic, where UPS would give the post office only the hard-to-deliver rural packages and keep all the easy-to-deliver urban and suburban packages for itself. The USPS liked FedEx SmartPost more because SmartPost gives ALL of its packages to the USPS. And so now that's what UPS is doing too, with SurePost. So the cooperation levels should be the same for both SmartPost and SurePost, and I expect a very healthy competition between them that will benefit customers.

I'm speculating with what follows, but I'll note that the USPS is authorized to enter into an "NSA" ("negotiated service agreement") with a shipper of a "competitive" product (such as parcels) under which the USPS can offer concessions, such as lower rates, based on the shipper's particular characteristics. I don't know whether UPS SurePost and the USPS have entered into an NSA, but I would imagine they have. If so, the USPS probably would offer UPS a better deal if UPS would commit to give ALL of its SurePost packages to the USPS, not just the hard-to-deliver rural packages. If I'm right about that, it may help to explain why UPS has decided that 100% of its SurePost packages will be handed off to post offices.

 

[rje]

UPS Sales Guy,

When you say UPS still has the right to deliver any SurePost volume on UPS trucks, do you mean that UPS can deliver those packages directly to the home, or only to the local post office? My understanding is that UPS may NOT deliver them directly to the home. It could with UPS Basic, but not with SurePost. That's my understanding, but I'll defer to you if you insist it's otherwise. It's possible, I suppose, that UPS has insisted on this right, but I would imagine that if it has, it's limited to just certain situations. For example, maybe UPS reserves that right if the package is going to be very late if it's dropped at a post office and UPS wants to make sure the customer doesn't get too upset. Or maybe UPS is allowed to deliver some very limited percentage of SurePost packages directly. Something like that, I could imagine, but my understanding is that UPS has committed at least generally to dropping all SurePost packages at post offices. They get to the post office on a UPS truck, if that's all you mean by "right to deliver." But if you mean "direct to the home," that's not my understanding. Please clarify.

 

[rje]

I'm not affiliated with any carrier or shipper, and have no ax to grind. But I can see the handwriting on the wall. The Postal Service is banking on its "destination entry" parcel business to make up for the loss of first class mail. Some big shippers are dealing directly with the Postal Service on this, delivering to regional DNDCs, or even to large local post offices. Obviously they're cutting out UPS and FedEx entirely. Other shippers are using FedEx SmartPost, and now UPS SurePost. Either way, it's a lost package for UPS Ground or FedEx Ground/Home drivers. Their only "delivery" is to the local post office, and they usually deliver a lot of packages at one time in that one stop. For example, if there are 10 packages in a sack that a UPS driver deposits at a post office, that's 10 deliveries reduced to one delivery. I don't know how that affects a driver's compensation, but my hunch is it doesn't help.

I'm not saying I condone this, or like it or dislike it. I'm just saying that UPS drivers had better understand that that's what's happening, and I don't see the trend doing anything but accelerating in the future.

 

[Taco]

The Postal Service is banking on its "destination entry" parcel business to make up for the loss of first class mail.

And looking at the rates for SmartPost, I can't figure out why. Cheapest you can get is $5.49 (that's Zone 1) from FedEx, and the Post Office will do the same (any zone) for $3.65 or less.

 

[AMTK54]

And looking at the rates for SmartPost, I can't figure out why. Cheapest you can get is $5.49 (that's Zone 1) from FedEx, and the Post Office will do the same (any zone) for $3.65 or less.

If it's under a pound and the shipper is doing volume, that's when something like UPS Mail Innovations comes into play. As someone else mentioned, businesses go the SmartPost route to avoid getting hit with Resi delivery fees - though I'm sure FedEx also gives a nice discount on the list rates to any volume shipper.

 

[UpstateNYUPSer(Ret)]

And looking at the rates for SmartPost, I can't figure out why. Cheapest you can get is $5.49 (that's Zone 1) from FedEx, and the Post Office will do the same (any zone) for $3.65 or less.

Keep in mind that these rates are before any negotiated discounts, which can be substantial (30% or more).

 

[Limper]

Our center manager told us that UPS wants ALL "basic" packages, including all those green LL Bean will eventually all go to the Post Office.
My PO gets 25-30 daily and the carriers sometimes have to come back to their building! UPS manages to not only ruin my day
with dispatch but letter carriers now too!