Why Does Volume Dictate Amount Of Routes?

[Overpaid Union Thug]

Is Bonus more that one would make not cutting corners, etc, and taking the overtime? How much does bonus pay?

Here bonus is straight time and on most routes you can't get it without cutting corners. It's also a paycut of somewhere around $4000/year if you get an hour of bonus every day. Because of loss of OT.

 

[SolidWoodPanel]

I know stops per car have been up, but volume overall is way down at our building. Some cases scarily so. I've never seen it this low since I've been here. I was accustomed to hearing volume is down play just like everyone else but I can SEE it now and where it was when I loaded and its shocking to me. The thing is the preloaders don't buy it because we're really good at cutting routes and keeping them busy, but the fact is it IS way down in some areas, its about 9,000 down overall from when I used to load...think about that. This is not something I made up and it kind of scares me. The hub sorts are down much more than that.

I'm not saying that I think 12 hour days are fair because I don't, but UPS is going to do what they have to do to stop the bleeding. I feel for some of the drivers because I see what their routes have become instead of what they were. I only hope for their sake it goes back to normal when and if things improve.

 

[1989]

Here bonus is straight time and on most routes you can't get it without cutting corners. It's also a paycut of somewhere around $4000/year if you get an hour of bonus every day. Because of loss of OT.

Come on, the time studies are so inconsistent. There must be at least 1 or 2 routes that has an easy 30 min daily bonus.

 

[Motor]

So the money that UPS charges per weight for the packages is what creates the budget, now within that budget UPS has to pay for trucks, drivers, fuel etc..
to deliver all those packages to their stops.

If a customer can do all the stops himself, then they wouldnt need UPS, so in order to bring value to the customer, UPS has to offer more stops.

Volume equals Revenue ... Stops do not.
Customers do not pay us money for stops.

Customers pay by the package not by the stop.

 

[oldngray]

So the money that UPS charges per weight for the packages is what creates the budget, now within that budget UPS has to pay for trucks, drivers, fuel etc..
to deliver all those packages to their stops.

If a customer can do all the stops himself, then they wouldnt need UPS, so in order to bring value to the customer, UPS has to offer more stops.

Delivery customers don't pay. Not directly anyway. Shipper pays. And the shipper only looks at price per package. Stops are irrelevant.

 

[Motor]

Are stops are irrelevant because UPS has an algorithm that makes sure the money generated for the budget(what ups charges per weight) is always greater than the cost to make all the deliveries to their stops?

Delivery customers don't pay. Not directly anyway. Shipper pays. And the shipper only looks at price per package. Stops are irrelevant.

 

[oldngray]

Are stops are irrelevant because UPS has an algorithm that makes sure the money generated for the budget(what ups charges per weight) is always greater than the cost to make all the deliveries to their stops?

A lot of numbers get crunched to calculate rates but UPS will lose money delivering to some stops. Where the real profit comes from is dense commercial stops that get a lot of packages.

 

[Motor]

Is this why a lot of customers complain about how some fedex drivers dont even attempt to make deliveries? The driver realizes the stop wont make money so he does a fake scan, saying he attempted to make a delivery but the customer wasnt there, then proceeds to the next delivery which pays more due to more volume?

I read online a customer got upset because a fedex driver didnt even attempt to deliver the customers mattress. Iam guess its because the mattress is large, takes up a lot of space, but its light, so it doesnt make as much money as other stops.


Iam curious to know if managment encourages the drivers to do that?

A lot of numbers get crunched to calculate rates but UPS will lose money delivering to some stops. Where the real profit comes from is dense commercial stops that get a lot of packages.

 

[oldngray]

Is this why a lot of customers complain about how some fedex drivers dont even attempt to make deliveries? The driver realizes the stop wont make money so he does a fake scan, saying he attempted to make a delivery but the customer wasnt there, then proceeds to the next delivery which pays more due to more volume?


Iam curious to know if managment encourages the drivers to do that?

Something like that would seldom if ever happen. When there are service failures they would be for other reasons.

 

[Motor]

If some stops UPS loses money then why even bother to take the package in the first place?

Is it because UPS is a huge company with many employees, and UPS has to keep them occupied and working, so UPS will even take on packages that make very little money or no money at all, plus if UPS takes on packages that make them very little money, this will take away business from small delivery companies and push them out of the delivery business.

A lot of numbers get crunched to calculate rates but UPS will lose money delivering to some stops. Where the real profit comes from is dense commercial stops that get a lot of packages.

 

[oldngray]

If some stops UPS loses money then why even bother to take the package in the first place?

Is it because UPS is a huge company with many employees, and UPS has to keep them occupied and working, so UPS will even take on packages that make very little money or no money at all, plus if UPS takes on packages that make them very little money, this will take away business from small delivery companies and push them out of the delivery business.

Its all part of the agreements to service all areas.

 

[Overpaid Union Thug]

Come on, the time studies are so inconsistent. There must be at least 1 or 2 routes that has an easy 30 min daily bonus.

Yeah. I did say "most" routes. LOL