FedEx vs UPS. How does UPS do it?

[Cactus]

Last I read there are about 176,000,000 shares of outstanding FedEx stock. The executives are given stock options as an incentive to do what's necessary to get the profits and stock price up. They are in business to make money for shareholders, including themselves, and that will always be their priority. Not talking about morality, just reality. Your job exists to make them money. If they can't make money they will close and do something else. Yes that's the company's revenue. THEY are the company, not you. However it's all these companies trying to get rich that will increase your 401k. Do I think they should stick to the pay plan they created to keep employees? Absolutely. But they have a long track record of putting their greed before the interests of their employees. It is what it is and you either have to accept it or move on because they've made sure through Congress that you won't be able to do more than that.

It may take awhile but their quenchless thirst for more money and more money will be their undoing. Glad I got out when I did.

 

[zubenelgenubi]

It may take awhile but their quenchless thirst for more money and more money will be their undoing. Glad I got out when I did.

The constant push for "more" leads to desperation, and desperation leads to poor decision making. Leaning too much on employees to cut costs/boost stock price is the first resort of all incompetent management. Despite @vantexan's views, it goes both ways. No employees, or no good employees, no company as well.

One guy I worked for would take on contracts just to show growth. It didn't matter to him if they were actually a loss. He left it to me to service them and would constantly yell at me to get it done with fewer employees. I couldn't make him understand simple economics.

 

[59 Dano]

Wanna take a guess?

View attachment 264488

And for years and years the hourlies had to be the ones to make all the sacrifices whenever one if these illustrious CEO’s ****ed up, things weren’t going exactly to plan or when the CEO’s just got more greedy. MT3 would get on frontline with some guilt trip or sob story about how things are hurting. In other words we were expected to work harder for less. Pathetic. Now when it came to successes and rewards, well we lost all that. Any wonder why anybody besides Fredfans or Kool-Aid drinkers are bitter?

That's over $54 million in compensation for the top dogs for FY '19. If you took half of that money and gave it to the hourlies, those lucky hourlies would be about $85 richer for the year.

 

[Cactus]

That's over $54 million in compensation for the top dogs for FY '19. If you took half of that money and gave it to the hourlies, those lucky hourlies would be about $85 richer for the year.

So be it. But you can’t justify those salaries. You tell me what makes them worth that much?

 

[SmithBarney]

UPS drivers regularly stay out til 7-8pm delivering.
If FXE truly optimized routes for maximum productivity 40-60% of the routes would be P1 only with the remaining routes being all day routes running til 8pm commit times.

 

[SmithBarney]

What about those fancy Mercedes Benz trucks Fedex be driving around? Seems pretty high brow and high maintenance for a delivery truck.

It's not like they are clad in leather and woodgrain dashes, they are a pretty well tested workhorse. Base price isn't much different than a P1000 at UPS.

 

[MAKAVELI]

It's not like they are clad in leather and woodgrain dashes, they are a pretty well tested workhorse. Base price isn't much different than a P1000 at UPS.

A step van is much more efficient to work out of saving time at every stop. UPS has done their research and knows what type of vehicle is best for the job.

 

[SmithBarney]

A step van is much more efficient to work out of saving time at every stop. UPS has done their research and knows what type of vehicle is best for the job.

Yes at the Volume of packages they move a step van is better, that's why FDX high volume routes use step vans. Sprinters work really well for most of the routes they are assigned to, the maneuverability and size work well for those routes. Econolines/Savanas well those just suck all day(unless you are on a rural route with 25 stops)

 

[MAKAVELI]

Yes at the Volume of packages they move a step van is better, that's why FDX high volume routes use step vans. Sprinters work really well for most of the routes they are assigned to, the maneuverability and size work well for those routes. Econolines/Savanas well those just suck all day(unless you are on a rural route with 25 stops)

UPS uses smaller step vans in rural routes. Still more efficient than a Sprinter or Econoline. Next time you see a UPS driver on your route, observe how fast they are out of the vehicle and back in and driving off. The sprinter is cumbersome getting out of the small cab and unlocking the bulkhead with a key and then the sliding door. It really adds time to the delivery process.

 

[SmithBarney]

UPS uses smaller step vans in rural routes. Still more efficient than a Sprinter or Econoline. Next time you see a UPS driver on your route, observe how fast they are out of the vehicle and back in and driving off. The sprinter is cumbersome getting out of the small cab and unlocking the bulkhead with a key and then the sliding door. It really adds time to the delivery process.

I've worked for both, and I've worked out of nearly every vehicle each company puts on road, I know the advantages of both.
Worked out of Old Freightliner/Dodge Sprinters at UPS, they were junk for what we used them for, they didn't hold up to backcountry roads. Used the Workhorse at UPS, probably the best since the door openings were so large. Worked out of the 4x4 F350 boxtrucks at UPS(and FDX), PITA but they worked well for the locations. The newer Mercedes Sprinters at FDX are bigger than the Older Dodge variant. Again They fit the need for the routes, there is no reason to run a step truck on most routes that run a sprinter because they just don't need the space. And package selection and getting out the vehicle, there is just as much variation in time based just on the driver alone, I've seen some really slow UPS(and FDX drivers) I've seen fast. I've pulled up at stops where I was in and out and gone while the other driver was still in the truck. The difference is mostly negligible, I put the onus on the drivers ability more than vehicle design(comparing step van to newer sprinter)

 

[MAKAVELI]

I've worked for both, and I've worked out of nearly every vehicle each company puts on road, I know the advantages of both.
Worked out of Old Freightliner/Dodge Sprinters at UPS, they were junk for what we used them for, they didn't hold up to backcountry roads. Used the Workhorse at UPS, probably the best since the door openings were so large. Worked out of the 4x4 F350 boxtrucks at UPS(and FDX), PITA but they worked well for the locations. The newer Mercedes Sprinters at FDX are bigger than the Older Dodge variant. Again They fit the need for the routes, there is no reason to run a step truck on most routes that run a sprinter because they just don't need the space. And package selection and getting out the vehicle, there is just as much variation in time based just on the driver alone, I've seen some really slow UPS(and FDX drivers) I've seen fast. I've pulled up at stops where I was in and out and gone while the other driver was still in the truck. The difference is mostly negligible, I put the onus on the drivers ability more than vehicle design(comparing step van to newer sprinter)

Taking the driver out of the equation, the step van is by far faster. All of their step vans bulkhead open by remote now which makes it even more efficient. While the Mercedes is larger than the Dodge, they are still small especially for us taller drivers. All I'm saying is UPS uses the most efficient vehicle for the job. FedEx on the other hand I don't know what they were thinking when purchasing these new Sprinters. More expensive to maintain and still have a horrible turning radius. The only positives are the extra power( vs the older Mercedes), ac, and compliant suspension.

 

[vantexan]

The constant push for "more" leads to desperation, and desperation leads to poor decision making. Leaning too much on employees to cut costs/boost stock price is the first resort of all incompetent management. Despite @vantexan's views, it goes both ways. No employees, or no good employees, no company as well.

One guy I worked for would take on contracts just to show growth. It didn't matter to him if they were actually a loss. He left it to me to service them and would constantly yell at me to get it done with fewer employees. I couldn't make him understand simple economics.

Despite my views? Did you not notice what I said about raises? The problem with too many is they only want to read their viewpoint, not have an honest discussion about the reality of a situation. If you aren't aware of everything underlying corporate decisions, just want what you want, you will forever be controlled by others.

 

[Fred's Myth]

Taking the driver out of the equation, the step van is by far faster. All of their step vans bulkhead open by remote now which makes it even more efficient. While the Mercedes is larger than the Dodge, they are still small especially for us taller drivers. All I'm saying is UPS uses the most efficient vehicle for the job. FedEx on the other hand I don't know what they were thinking when purchasing these new Sprinters. More expensive to maintain and still have a horrible turning radius. The only positives are the extra power( vs the older Mercedes), ac, and compliant suspension.

You overlooked a major corporate initiative.

Fuel economy.

 

[zubenelgenubi]

Despite my views? Did you not notice what I said about raises? The problem with too many is they only want to read their viewpoint, not have an honest discussion about the reality of a situation. If you aren't aware of everything underlying corporate decisions, just want what you want, you will forever be controlled by others.

Just giving a counterpoint to what you were saying about management/corporate being the company rather than the employees. That is the attitude that kills companies in the long run, but It's so easy for bad managers to put the burden on the employees. They don't think long-term, they lack vision for the future of the company. Employees are just as important as management, and corporate clowns who don't understand that are slowly strangling their companies to death.

 

[MAKAVELI]

You overlooked a major corporate initiative.

Fuel economy.

The new Sprinters are worse than the older Sprinters as far as fuel economy.

 

[Fred's Myth]

The new Sprinters are worse than the older Sprinters as far as fuel economy.

Now compare them to step vans.

 

[vantexan]

Just giving a counterpoint to what you were saying about management/corporate being the company rather than the employees. That is the attitude that kills companies in the long run, but It's so easy for bad managers to put the burden on the employees. They don't think long-term, they lack vision for the future of the company. Employees are just as important as management, and corporate clowns who don't understand that are slowly strangling their companies to death.

The company caring about it's employees ship sailed about 30 years ago. Would a company that cares about people create a division like Ground? So why did they? Because it's a cash cow. That's what it's all about. They were willing to ruin the future of tens of thousands of Express employees to get Ground up and running. No matter what they should be doing, this is who they are. The only reason they came up with the new pay plan was turnover was killing the Express cash cow. It was about saving their millions, not helping you. People long for the good ol' days. I suspect the pay and benefits of the good ol' days were about building a brand by attracting quality people. Nothing about the last 30 years makes me think they value people as much as profit. So if you're going to rail against them be prepared for a lot of frustration because it's their ball, their playing field, their rules.

 

[zubenelgenubi]

The company caring about it's employees ship sailed about 30 years ago. Would a company that cares about people create a division like Ground? So why did they? Because it's a cash cow. That's what it's all about. They were willing to ruin the future of tens of thousands of Express employees to get Ground up and running. No matter what they should be doing, this is who they are. The only reason they came up with the new pay plan was turnover was killing the Express cash cow. It was about saving their millions, not helping you. People long for the good ol' days. I suspect the pay and benefits of the good ol' days was about building a brand by attracting quality people. Nothing about the last 30 years makes me think they value people as much as profit. So if you're going to rail against them be prepared for a lot of frustration because it's their ball, their playing field, their rules.

All the balls and playing fields in the world won't mean much once people get tired of playing their games. A good manager knows to balance the interests of the employees, customers, and shareholders. To think they can lean on employees while continuing to keep the company balanced and healthy is folly.

 

[vantexan]

All the balls and playing fields in the world won't mean much once people get tired of playing their games. A good manager knows to balance the interests of the employees, customers, and shareholders. To think they can lean on employees while continuing to keep the company balanced and healthy is folly.

Again, you're talking about the way it ought to be. That's not the reality. Good luck with that.

 

[zubenelgenubi]

Again, you're talking about the way it ought to be. That's not the reality. Good luck with that.

Totally agree that it ought to be that way, nothing wrong with criticizing the current state of affairs. The better you define the problem and the more people you make aware of the problem, the greater the will to solve it.