Dark day in my center

[EAM_Master]

I got word today that my center just lost their biggest shipping account to FedEx. This place is a major manufacturer of medical equipment used all around the world. They ship out about 4 semi trailers everyday, about 40% of that is NDA. I don't even want to imagine what the fallout is going to be when it is all said and done. Rumor has it that the local sort is going to lose 9 part-timers and they are going to eliminate 2 feeder routes. The thing is FedEx has been dying to get this account for years, even undercutting us by a significant amount. I was always told that they much preferred UPS because of our far superior service. This just makes me wonder what the hell happened? Has anyone else had a major shipper leave their center? What happened there when they did? I'm curious.

[big_arrow_up]

Most of ours came back. The ones that didn't still use us for ground and even air but not as much as they used to. They still have to use us because FedEx can't always make service or their pickup times aren't late enough. UPS needs to come down on the rates or this will keep happening. We provide better service but maybe not so much better as to keep customers from leaning towards a cheaper offer. I'm sick of hearing the excuse that are rates are higher because of union wages....Whatever.

[InTheRed]

i've seen a major account leave us for fedex b/c they were purchased by a competitor who uses fedex. i kinda don't miss it b/c it was 3 pickups which were all self-service.

The first pickup you had to go up a few stairs and move the packages out to the top of the stairs and move them into your truck yourself. Basically you tripled-handled the package, so 20 packages was like 60. If they had 50 or so packages, well you get it...

The second part was mainly large windows and window parts. That part you could back up to the "dock" which was the perfect height for the package car. They could either give you 15 packages or 215 packages.

The third part was the security office with about 20 next day airs. These were the next day air packs (the flimsy plastic ones). The thing that urked me was that they never sealed their packages and they felt it was our job to close their packages for them.

The fallout from that... well that "pickup" took about 45-50 minutes to do, so the guy's route increased from 90-95 to about 110 or 115. Actually it helps that guy out in getting in because now he doesn't have to stay out late for that pickup.

Yes, we lost some nice volume there, but there was nothing we could do to maintain that account. The company that bought out our customer had a long-standing relationship with FedEx and wasn't budging (it also didn't help that they gave away fedex ground service for virtually cost). We've lost numerous accounts in our building, but we've also gained numerous accounts. I believe we're pretty much even-steven in our area.

[Sammie]

Originally Posted by EAM_Master

I got word today that my center just lost their biggest shipping account to FedEx. This place is a major manufacturer of medical equipment used all around the world. They ship out about 4 semi trailers everyday, about 40% of that is NDA. I don't even want to imagine what the fallout is going to be when it is all said and done. Rumor has it that the local sort is going to lose 9 part-timers and they are going to eliminate 2 feeder routes. The thing is FedEx has been dying to get this account for years, even undercutting us by a significant amount. I was always told that they much preferred UPS because of our far superior service. This just makes me wonder what the hell happened? Has anyone else had a major shipper leave their center? What happened there when they did? I'm curious.

What goes around, comes around. I had a significant customer base during 15 in customer service and this kind of thing happens. My advice to the account executives, the service reps, the cm, the drivers and everybody else involved with this account, keep your cool. As hard as it is, remaining gracious will make it easier for the company to call you back again for UPS service.

If this company's home office is located elsewhere and has signed a deal for all locations to use Fedex, there's not much your local account can do except start leaning on the parent location.

Fedex often undercuts us, but from years of having customers hand me their Fedex freight bills, unless a customer looks every bill over with a fine tooth comb, those Fedex discounts don't last forever. Off hand, I can think of only one of my large accounts who stayed away for good. And the owner of that business was so verbally abusive that hey, let somebody
else deal with him.

IMHO, as I've mentioned before in this forum, the closer we get to our contract year, you all will see companies divert.

[boiled frog]

Originally Posted by big_arrow_up

Most of ours came back. The ones that didn't still use us for ground and even air but not as much as they used to. They still have to use us because FedEx can't always make service or their pickup times aren't late enough. UPS needs to come down on the rates or this will keep happening. We provide better service but maybe not so much better as to keep customers from leaning towards a cheaper offer. I'm sick of hearing the excuse that are rates are higher because of union wages....Whatever.

As soon as the Teamsters "come down on their rates" UPS will be able to also.

[jlphotog]

Originally Posted by EAM_Master

I was always told that they much preferred UPS because of our far superior service. This just makes me wonder what the hell happened?

Well, in my last career the trend for the past few years was screw the good product and service, lets go with the lowest price and accept an inferior product.

Pretty sad actually.

[big_arrow_up]

Originally Posted by boiled frog

As soon as the Teamsters "come down on their rates" UPS will be able to also.

Oh really? So we are getting paid too much? Wow! And I thought UPS could afford it with their record profits that they rack up EVERY YEAR! Man, what was I thinking? <----Sarcasm detinately intended. But hey...nice try Boiled Frog.

[1989]

Originally Posted by EAM_Master

I got word today that my center just lost their biggest shipping account to FedEx. This place is a major manufacturer of medical equipment used all around the world. They ship out about 4 semi trailers everyday, about 40% of that is NDA. I don't even want to imagine what the fallout is going to be when it is all said and done. Rumor has it that the local sort is going to lose 9 part-timers and they are going to eliminate 2 feeder routes. The thing is FedEx has been dying to get this account for years, even undercutting us by a significant amount. I was always told that they much preferred UPS because of our far superior service. This just makes me wonder what the hell happened? Has anyone else had a major shipper leave their center? What happened there when they did? I'm curious.

In my old center we lost an account to fed ex. It had something to do with the guarrantee of our internet site. About 300 or 400 next day air (40-50 pound boxes of paper) about 5 or 6 pallets. And 200-500 asd's from a letter box. I don't know what the fallout was in the hub... But it sure was a blessing on my knees, Handling those boxes twice. FedEx brings in 3 cars to pick them up (because of the weight) Then fed ex ground wraps it up.

[scratch]

Originally Posted by boiled frog

As soon as the Teamsters "come down on their rates" UPS will be able to also.

A lot of my fellow hourlys don't like hearing that, but that is a true statement. Everytime we raised our rates, the competition does the same. And their people do the job for a lot less. They used to have higher rates than us, but thats not the case anymore. I think the days of a dollar an hour raise once a year are gone, we are pricing ourselves out of a job. The other guys are thrilled if they get a $.50 an hour raise. No doubt our people work harder and deserve more, but its a business, and customers have to look at their bottom line too.

[big_arrow_up]

Originally Posted by scratch

A lot of my fellow hourlys don't like hearing that, but that is a true statement. Everytime we raised our rates, the competition does the same. And their people do the job for a lot less. They used to have higher rates than us, but thats not the case anymore. I think the days of a dollar an hour raise once a year are gone, we are pricing ourselves out of a job. The other guys are thrilled if they get a $.50 an hour raise. No doubt our people work harder and deserve more, but its a business, and customers have to look at their bottom line too.

I would look at it that way too if UPS wasn't reporting record profits every year. And doing so all while spending millions on PAS/EDD, building news sate of the art hubs, and creating thousand of new full-time jobs. I do agree that these huge raises should stop because in the long run it will catch up to UPS. They'd have to REALLY, REALLY break some profit records in order to keep profiting at all. But now....I'm not buying it. I just don't see how our wages are dictating the higher rates. Plus...if it was really that bad then UPS wouldn't have agreed to it during contract negotiations all these years. Even with a fear of a strike a company isn't going to agree to paying wages that will cripple it's profits. I'm not business expert. So I may be wrong but I say these things because that's how I see it from my perspective of just being an average joe.

[BLACKBOX]

When I hear about accounts leaving UPS sometimes I just don't get it. People love our service! I know many of you make it a point to give the best service possible. I was talking to the FDX express driver one day and he mentioned something interesting. Even though express,ground and freight are delivered separately, FDX customers love getting their stuff early as possible. He says FDX makes it a point to take care of business accounts before doing resi dels.

The way my route is set up some of my business accounts gets del late in the afternoon and customers aren't happy about it. They've mentioned this many times and some are leaving because of this. Without this flexibility, we will continue to lose more.

[rod]

Originally Posted by boiled frog

As soon as the Teamsters "come down on their rates" UPS will be able to also.

And I suppose middle to upper management is underpaid. As my old CM once told me " when you guys get a raise , we ain't far behind- they ain't going to pay us less than you" . Boiled Frog , just because you fall into that "part time management" catigorie and don't make squat don't blame the Teamsters because you are starving. Blame yourself for going over to the other side. Oh, by the way your chances of advancing to middle management is zilch, zero, nada, ain't going to happen.

[softshoe]

Originally Posted by boiled frog

As soon as the Teamsters "come down on their rates" UPS will be able to also.

As soon as managements wages are reduced UPS will be able to compete!

[satellitedriver]

Originally Posted by boiled frog

As soon as the Teamsters "come down on their rates" UPS will be able to also.

Here is a recipe I learned along time ago.
How to boil a frog.
Never place a frog directly into a pot of hot water. It will jump out.
Place the frog in a pot of room temp water and turn on the heat at a very low heat.
The frog relaxes and enjoys the bath.
Slowly turn up the heat and the frog justs keeps relaxing.
By the time the water hits boiling, the frog is unable to jump out of the pot and you have a boiled frog.
This has no real direct reference to your post, but your avatar reminded me of the recipe.
Actually, it does have an indirect reference to your post, but I will just let you stew on it for awhile.

[DS]

eww stewed frog...you must be in Kentucky

[Sammie]

These are delicious......

My old room mates used to catch frogs
in the Sacramento River and bring them home for me to cook.
Hey, we were starving college kids!!!

http://www.cdkitchen.com/recipes/rec...Legs2360.shtml

[area43]

Originally Posted by big_arrow_up

I would look at it that way too if UPS wasn't reporting record profits every year. And doing so all while spending millions on PAS/EDD, building news sate of the art hubs, and creating thousand of new full-time jobs. I do agree that these huge raises should stop because in the long run it will catch up to UPS. They'd have to REALLY, REALLY break some profit records in order to keep profiting at all. But now....I'm not buying it. I just don't see how our wages are dictating the higher rates. Plus...if it was really that bad then UPS wouldn't have agreed to it during contract negotiations all these years. Even with a fear of a strike a company isn't going to agree to paying wages that will cripple it's profits. I'm not business expert. So I may be wrong but I say these things because that's how I see it from my perspective of just being an average joe.

BAU, I see your point,but least we forget the whole purpose of a business is to make money(profit). I could careless if UPS makes 20 billion in profit. Thats the good ol american way. Yes, we contribute to that profit,but the real question is do you fell you are adequately compensated for your work? Be honest. If you are, than you have no problem of UPS making billions in profit. Least we forget, On top of what we make now, UPS pays another 214 a week for our pension to the teamsters. The reason I say this is because if you havent noticed, company funded pension are going the way of the dinosaur. Many are underfunded and going under. Its not UPS s fault. Many or all companys are turning to the 401ks as your only retirement which is smart on their part and yours. So actually, we are fortunate, two pension plans if you(the employee) plans it right. Another great benefit, Insurance(UPS pay another 200 plus a week on that), Im in virgina so it could vary,but we do not have to pay any premium out of pocket, expenses. Yes , we have deductables but thats it. I say all this, because I ( and this is my opinion) think we are fairly compensated for our work. Does UPS make mistakes? PAS/EDD, etc,etc. yes. but, I believe it has more sucesses(which I think you agree) that many of us overlook. The proof of that, is that they are making a profit. Thats what being in business is all about. Bottom line. I have said this before we are like the mom and pop store, we have service but not a competitive price. If we could have service and price(the one,two punch) we would definetly kill the competition. Isnt that what walmart did, not much service though, but they had price. In closing, I believe a Pay freeze for all levels(mgt and hourly) ,the pt would not be included in the freeze. Have the monies that are saved and strictly desinate for rate reduction or stablization. Our future(UPS's) here is at stake. Lets be proactive instead of reactive. For once Id like to give my customers a break on the rate increases. ps sorry for such a long post.

[NI1]

Give it some time, they will come back.

Footlocker came back and they wanted their 'discount' back but we said NO! they are back without the discount.

We are always told about how we will lose our job because we keep losing the 'huge' accounts. Why are we losing these accounts? I know for sure that its not because of service.

[LKLND3380]

Originally Posted by boiled frog

As soon as the Teamsters "come down on their rates" UPS will be able to also.

The Post Office is union... But the post office does not have investors screaming for proffit or a CEO ESKREWING the company...