BASIC Quesion..

Dustyroads

Well-Known Member
So the Post Office gets payed for doing nothing.
UPS loses less money at best.
Neat.
It appears to me that you're just masking the problem by doing what your doing.
I'm not doubting your motives, but the system now seems to be flawed in both rural and urban settings.
Unfortunately at this company we have to fail miserably to get the attention and prudent decisions from the higher ups.

Actually, the way it works, the Post Office only generates any billing in the whole thing if they scan the packages, which initiates a billing through the UPS system. Unless my center management team is wrong, the Post Office only receives revenue when they receive the package from us and scan them. If we deliver it without them, they get nothing. But, I appreciate your thoughts on the matter.
 

brownrod

Well-Known Member
I delivered 29 basics to the post office today. This was a city post office. Last week I had a day where I delivered 15 basics to a very rural post office.

Today I pulled up a huge orange tub on wheels to the back of my truck. I threw the basics in. One rather large bag of clothing I chucked it in there from damn near the cab. I yelled "he shoots, he scores." I looked up and some elderly postal work was looking at me with disgust. :knockedout:
 

Bubblehead

My Senior Picture
Actually, the way it works, the Post Office only generates any billing in the whole thing if they scan the packages, which initiates a billing through the UPS system. Unless my center management team is wrong, the Post Office only receives revenue when they receive the package from us and scan them. If we deliver it without them, they get nothing. But, I appreciate your thoughts on the matter.

Assuming that your center has it right, UPS is still losing money on the deal.
We are contracted to take these packages to one address, the Post Office, at much lower rate than would be the case for a normal ground package.
At best you and your center teams alternate plan is minimizing the loss.
I don't read your response to mean that we get the additional revenue that the Post Office receives when we finalize the delivery instead of them.
Is that the case as you understand it?
 

Dustyroads

Well-Known Member
I suppose you think it would be better for me to break off, drive 40 miles to deliver one residential package to the post office, and then smile as I drive by the consignee's house later in the day. The bottom line is that I am working as instructed. You may not realize this, working the the big city, but UPS loses money on every single package that I deliver. We make it up with some young guys really kicking it in the city, delivering out of those great big trucks. :)
 

Bubblehead

My Senior Picture
I suppose you think it would be better for me to break off, drive 40 miles to deliver one residential package to the post office, and then smile as I drive by the consignee's house later in the day. The bottom line is that I am working as instructed. You may not realize this, working the the big city, but UPS loses money on every single package that I deliver. We make it up with some young guys really kicking it in the city, delivering out of those great big trucks. :)

Don't get me wrong.
I'm not faulting you for minimizing the damage.
My indictment is on the system.
Obviously it isn't working well in our two completely different enviroments.
I think we far to often step over dimes to pick up nickels.
In this case I think we should strive for as much of the fifteen cents as possible.

P.S. I deliver out of a p700 and haven't been young since the early 90's.:peaceful:
 

satellitedriver

Moderator
Actually, the way it works, the Post Office only generates any billing in the whole thing if they scan the packages, which initiates a billing through the UPS system. Unless my center management team is wrong, the Post Office only receives revenue when they receive the package from us and scan them. If we deliver it without them, they get nothing. But, I appreciate your thoughts on the matter.
True, but we still only get our discounted rate.
This is just becoming a shell game.
Why not just cut our price by 50% and bypass the PO.
We would gain so much volume from the shippers, only at the cost of profit.
 

UpstateNYUPSer(Ret)

Well-Known Member
Dusty, when you deliver these Basic pkgs to the consignee rather than the P.O., do you manually change the address in the DIAD or, if it is a multiple piece delivery, do you scan the pkgs addressed to the consignee first and then add the pkg(s) addressed to the P.O., hit yes and hit no to indicate you are not delivering to the P.O.?

For the driver who said he does not get an autograph at the P.O., may I suggest that you begin doing so? The P.O. is a business and as such needs an autograph. You should also be getting a signature when delivering any commercial stop, irregardless of whether the pkgs are Basic or not.
 

LED

Well-Known Member
For the driver who said he does not get an autograph at the P.O., may I suggest that you begin doing so? The P.O. is a business and as such needs an autograph. You should also be getting a signature when delivering any commercial stop, irregardless of whether the pkgs are Basic or not.

Your center must be different than mine. Warning letters have been issued for drivers who do not leave BASIC packages to closed business in my center. I do not agree with the policy of leaving someones "L L Bean" at the front door of a closed business, but at the same time I will not take a warning letter or suspension for not doing that either.

There is a PCM at least once a month about these BASIC packages. Many drivers bring them back instead of just leaving them. It does not matter if it is a level 4 apartment in the ghetto, or a closed business in the mall, we are to leave them and go. We have it beat into our heads that the shipper knows that the package will be delivered the first time whether the business is open or not.

As far as delivering the packages to the post office, I was wondring if the diad gives you the message to leave them or not. I have never delivered to the post office.
 

Dustyroads

Well-Known Member
Upstate, if I have a single package, I change the address to the consignee's, or if I have another package for that customer, I scan it first, add the one for the po, answer that I do want to add it, and when it's all over, I answer, that, no, it wasn't delivered to a post office. My center manager checked on this with someone "above" and they confirmed that was the procedure.

If I have a number of packages for the Post Office, or if I can see that I will not have to break trace and run my miles up to go there, then I take everything to the Post Office. However, I've been instructed that if I'm going to break trace, and if there are less miles run for me to deliver the stop to the consignee, then I should do that.

It is crazy to drive 40 extra miles to drop a QVC package at the post office, and pay them, if I happen to be driving by the house, or in some cases, when I have a package already for the customer.
 

brownmonster

Man of Great Wisdom
Are you saying that in the 40 miles from your last stop to the Post Office there are no other stops in between? We have some rural areas around here but wow.
 

EmerCond421

Well-Known Member
Are you saying that in the 40 miles from your last stop to the Post Office there are no other stops in between? We have some rural areas around here but wow.

Just an example, brownmonster, and not answering for Dustyroads but he and I have similar type of routes. I could and have many times, deliver to my last stop in town drive for 2 hours (about 110 miles) to my next stop, and then drive another 2 hours with 1 last p/u stop and 100 miles to return to center. :peaceful:
 

brownrod

Well-Known Member
Are you saying that in the 40 miles from your last stop to the Post Office there are no other stops in between? We have some rural areas around here but wow.

What he is most likely saying is that rural post offices have odd business hours and he has to break route to get there during business hours. Perhaps he normally swings by there after they are closed.

On a rural route I often do the post office closes at 330.
 

Dustyroads

Well-Known Member
You are exactly right, brownrod. My point earlier in the thread was that the post offices in rural areas have limited hours, not unlike some UPS customer counters in smaller centers. Some close a couple hours for lunch, some close at 330 or 400. I have one that is only open for two hours in the morning. So, it's not hard to run those 40 miles, when two towns are 20 miles apart and you have to leave all of your rural routes behind so you can drive that 20 miles to make it to the Post Office that is closing at 4 pm. Then turn around and go back to your spot where you broke trace and resume your delivering.

It's easy bonus money, but it's just foolish business-wise.
 

Dustyroads

Well-Known Member
It was those who are paid to make those decisions who instructed me to handle the BASIC/Post Office issue as I have. I didn't just decide to start doing that on my own. I don't really need to take any bonus money where it isn't necessary. I'd just as soon be off earlier.
 

satellitedriver

Moderator
It must just be me.

So to save miles on rural routes, we implemented Basic at a reduced revenue rate to deliver the pkgs to the PO so that they can deliver them to the consignee.
Said plan increases miles, if followed, at a reduced rate per pkg delivering them to the PO.
Drivers get permission to deliver them on route and not bother with the PO.
Huh?
Now, we make less per piece and deliver as we always have.:knockedout:
On the flip side a PO is just one stop no matter how many pkgs and is dispatched as such.
Now the driver delivers them as individual stops and bonus is paid.
A 80 stop rural route day is now a 95 stop day.
Managers must spend time making reports about this discrepancy.
Drivers either run up the miles to get to the PO, or they just increase their stop count.

I just don't get it, but I do work as directed.



 

Dustyroads

Well-Known Member
Satellite, as I said earlier, a lot depends on how many packages there are for the post office, what time I will be arriving there if I remain on trace and importantly, exactly where that package or packages might be located on the route. A stop or two inside a little town of 200 takes about 3 or 4 minutes. It could be a rural route that takes 40 minutes. If I could make it to town without breaking trace, it wouldn't even be a consideration. Bottom line is that I make a decision that gets the packages delivered at the least cost to UPS, at least with respect to the part that I have some control over, that which happens after the package arrives in my car.
 

brownmonster

Man of Great Wisdom
I heard that from the guy next to me who just retired from his rural route. No bonus available. The 20 year driver who took the route is in 2 hours earlier.
 

beentheredonethat

Well-Known Member
It must just be me.

So to save miles on rural routes, we implemented Basic at a reduced revenue rate to deliver the pkgs to the PO so that they can deliver them to the consignee.
Said plan increases miles, if followed, at a reduced rate per pkg delivering them to the PO.
Drivers get permission to deliver them on route and not bother with the PO.
Huh?
Now, we make less per piece and deliver as we always have.:knockedout:
On the flip side a PO is just one stop no matter how many pkgs and is dispatched as such.
Now the driver delivers them as individual stops and bonus is paid.
A 80 stop rural route day is now a 95 stop day.
Managers must spend time making reports about this discrepancy.
Drivers either run up the miles to get to the PO, or they just increase their stop count.

I just don't get it, but I do work as directed.




Satellite;
A few points, some customers demanded to have a service that was a lower cost alternative to our ground. FDX offers smart post where 100% of pkgs are delivered by the USPS, in some cases they deliver to the DDU (Local Post Office). in others they deliver to the BMC (Bulk Mailing Ctr - aka hub).
For our basic, we listed roughly 1/2 the zip codes where 25% of the population lived that is very rural. The average cost per piece to deliver a residential pkg is high due to the miles between stops etc. By deliverying all these USPS Basic pkgs to the post office, we reduce the number of stops and saving time (on average). Besides the time saved with a driver day. We also have other cost reductions for basic. We don't give claims on Basic, we have more liberal DR policies on Basic, we don't commit day for these pkgs. Now your route may be different where it does cost more to go to the post office. But on average, it's far cheaper for UPS. Any one can take a great decision that works most of the time, and find times when it doesn't make sense to do in one area. I think that's what we have here in your area.
 
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