Fixing the Peak Problem with Large Retailer Shippers

[TUT]

Someone mentioned: "UPS promises those companies they can deliver."

Then why do the carriers take away money back guarantees on delivery time during the season? They say they can handle it but not necessarily on-time during this period. My educated guess is you will indeed handle it, just not on normal delivery schedules, as you state clearly to all shippers each year. Now do they update their web-site ordering systems to pass that info on to the paying public? You'll be hard pressed to find that they do. But the public should just use some common sense here.

 

[Catatonic]

Someone mentioned: "UPS promises those companies they can deliver."

Then why do the carriers take away money back guarantees on delivery time during the season? They say they can handle it but not necessarily on-time during this period. My educated guess is you will indeed handle it, just not on normal delivery schedules, as you state clearly to all shippers each year. Now do they update their web-site ordering systems to pass that info on to the paying public? You'll be hard pressed to find that they do. But the public should just use some common sense here.

That is unrealistic in this age of blaming other on one's shortcomings.

Carriers roll back ground guarantees but move back to a later time on the same day for premium services.

 

[TUT]

That is unrealistic in this age of blaming other on one's shortcomings.

Carriers roll back ground guarantees but move back to a later time on the same day for premium services.

From one side of it, sure we think that. But there are compromises all over the place, in all industries, this is just yet another one. Local rail service, I should never have to wait for the next train, the current one should always be able to handle the volume waiting, no matter if a sporting event is happening or not. Or how about 2 sporting events at the same time? I think every time a train shows up, it should be able to handle all customers waiting, no excuses. I think we are dealing with a small percentage of people in which the internet amplifies their voice, most who don't get their stuff on time, just roll silently along. Way too many things in life that I can't just have when I want and I adjust. Every time I wait in line at a restaurant, I immediately assume restaurant failure and demand to speak with the manager.

Perhaps you were being sarcastic as well.

 

[Catatonic]

From one side of it, sure we think that. But there are compromises all over the place, in all industries, this is just yet another one. Local rail service, I should never have to wait for the next train, the current one should always be able to handle the volume waiting, no matter if a sporting event is happening or not. Or how about 2 sporting events at the same time? I think every time a train shows up, it should be able to handle all customers waiting, no excuses. I think we are dealing with a small percentage of people in which the internet amplifies their voice, most who don't get their stuff on time, just roll silently along. Way too many things in life that I can't just have when I want and I adjust. Every time I wait in line at a restaurant, I immediately assume restaurant failure and demand to speak with the manager.

Perhaps you were being sarcastic as well.

Actually I think we are in violent agreement.
People have unrealistic expectations for peak capacity such as train seats available, restaurant seats available, grocery store checkout personnel, etc.

 

[3 done 3 to go]

Yes, I didn't receive an nda Amazon order. We ordered on Monday morning. Ups never picked the trailer that night. As per amazon. I know we waited too long. I'm fine with it we were able to go to walmart and grab items similar. They people who complained are just lazy slobs. Not only did I deliver their packages. I also went shopping on x Mas eve. I could care less for the complainers

 

[3 done 3 to go]

I do think Ups needs to look at the cut,cut,cut mentality. I believe those days are over. Put routes on and get the sure post work back for us to do.

 

[Catatonic]

I do think Ups needs to look at the cut,cut,cut mentality. I believe those days are over. Put routes on and get the sure post work back for us to do.

Perhaps the cut, cut is reaching an end ... the bigger question is if and when the add, add, add occurs.

Surepost will never comeback to Ground.
Those packages would be gone from UPS if Surepost did not exist.

 

[Bubblehead]

Actually I think we are in violent agreement.
People have unrealistic expectations for peak capacity such as train seats available, restaurant seats available, grocery store checkout personnel, etc.

While I appreciate the analogy, I think it is somewhat apples and oranges.
Seats in restaurants, trains, airplanes and the like are in an excepted, finite supply.
It is no secret.
Where this newest hiccup in the UPS system arises is in the fact that this has never before been a problem in the small package delivery market at Christmas.
While the guarantee on ground packages was suspended, advertised time in transit wasn't.
We have always taken any and all packages, and in the absents of "Acts of God", we have always finished the job come Christmas Eve.
I heard a news story over the past couple of days that claimed approximately 40% of all retail sales occur during the holiday season.
With this being the case, why would it not be advantageous for UPS to position itself to reap the lion share of shipping charges for these sales that are shifting increasingly to online retailers?
Keep in mind we are talking about a two and half month time frame where we will running at or near full capacity, not 4 weeks like in decades of the past.
I'm betting if UPS isn't willing to make the investment to facilitate these timely holiday deliveries, somebody will.
There's money to be made.
It's a shame we haven't already, it would have made a hell of a statement over the last few days.
One that would pay dividends for years to come.

 

[Catatonic]

While I appreciate the analogy, I think it is somewhat apples and oranges.
Seats in restaurants, trains, airplanes and the like are in an excepted, finite supply.
It is no secret.
Where this newest hiccup in the UPS system arises is in the fact that this has never before been a problem in the small package delivery market at Christmas.
While the guarantee on ground packages was suspended, advertised time in transit wasn't.
We have always taken any and all packages, and in the absents of "Acts of God", we have always finished the job come Christmas Eve.
I heard a news story over the past couple of days that claimed approximately 40% of all retail sales occur during the holiday season.
With this being the case, why would it not be advantageous for UPS to position itself to reap the lion share of shipping charges for these sales that are shifting increasingly to online retailers?
Keep in mind we are talking about a two and half month time frame where we will running at or near full capacity, not 4 weeks like in decades of the past.
I'm betting if UPS isn't willing to make the investment to facilitate these timely holiday deliveries, somebody will.
There's money to be made.
It's a shame we haven't already, it would have made a hell of a statement over the last few days.
One that would pay dividends for years to come.

Can't say that anymore.

UPS has some of the sharpest pencils (Accountants) around.
If there actually is money to be made with some assurance for a 6 year period, I think UPS will react.
Unfortunately, UPS may actually be losing money on some of these extra packages from Amazon and maybe from other shippers as well.

Large shippers are always looking for alternatives to UPS, especially since the 1997 strike.

 

[TUT]

Seats in restaurants, trains, airplanes and the like are in an excepted, finite supply.
It is no secret.

Well as online shopping grows, general public will now realize there are limits to shipping as well. Once they get their knickers in order, they should be able to reason as to why. They will also adjust and should and yes expect, because shipping like the others truly does have a finite supply. Now they know!

 

[chuchu]

Do you understand how expensive it is to have extra drivers on the payroll?
UPS does.
That's the problem having industry leading healthcare, pension and other benefits in addition to industry leading wages.
The " healthcare, pension and other benefits" are overhead costs per driver regardless of how many are working.

I agree somewhat in a "controlled" environment. Not at peak.

That overhead can be reduced after peak season.

Bad PR and anger from let down consignees is damaging too.

 

[Catatonic]

I agree somewhat in a "controlled" environment. Not at peak.

That overhead can be reduced after peak season.

I would agree except others have said UPS struggles with getting people to drive just for peak.
Other than that, "Good point."

 

[chuchu]

I would agree except others have said UPS struggles with getting people to drive just for peak.
Other than that, "Good point."

I know that to be true. It seems as though the training process is done too late and isnt thorough.

Raise the seasonal pay three dollars per hour and hire/screen earlier.

I was seasonal and then hired off the street into packages. Raise the pay and the bar at the same time.

Believe it or not, there are some good people out there waiting to prove themselves.

 

[Catatonic]

I know that to be true. ...

Believe it or not, there are some good people out there waiting to prove themselves.

Millions, I'd say!

 

[Catatonic]

Did companies like Amazon and the other internet retailers that were sending emails, "free overnite shipping" really care if you got the item on time?

They had your money, you got to kick back in your easy chair, have a cocktail and avoid the crowds, parking, etc. at the malls. You were sure you had that last minute X-box game for little Billy.
And if little Billy's present wasn't there Amazon, et al could blame UPS or FedEx.

Bezos doesn't care, he's gonna build another gigantic distribution center stocked with barely above minimum wage workers and/or robots and put a few more brick and mortar stores out of business.

The Postal Service back when it was called the "Postal Service" used to issue mailing guidelines before Christmas. Now our instant gratification, gotta have it yesterday society rushes out for "free overnite shipping".

Somethings gotta give!

What's UPS supposed to do, have a mothball fleet of package cars, feeder tractors and trailers that sit for 11 months?
That takes a large capital investment, say they do it before 2014, it works then, they repeat for 2015, then the economy goes in the red again. All that capital tied up, and no return on investment.

Maybe someone should have spoken up to Amazon, et al and said there may be service failures.

(Maybe they did around the conference table and they all agreed "Who Cares, We'll have their money.")

A voice of reason amongst the screaming me-mes!

 

[Catatonic]

Just saw a session on FOX Business News and the lady on there said, "Yeah, it was a UPS fail but these retailers have the responsibility to keep the carriers up to date and they also have the responsibility to let the buyers know that it may take a couple of extra days to get delivered."
Maybe the media is learning a bit about logistics.

 

[oldupsman]

Do you understand how expensive it is to have extra drivers on the payroll?
UPS does.
That's the problem having industry leading healthcare, pension and other benefits in addition to industry leading wages.
The " healthcare, pension and other benefits" are overhead costs per driver regardless of how many are working.

What health care benefits? They are about to dump all those costs on the union. Listen to people on this board
they're giving away money on 9.5 grievances. My neighbor who still works for us in feeders tells me how he sat
for hours at hubs waiting for loads that weren't getting processed because of manpower shortages. I love to see what they pay out
in a year in overtime. I know Hoax, I heard it all for years. Another package car, 6 more tires, another tank of gas,
yada yada yada. I had an old District manager tell me once the
worse phrase in business is, "That's the way we've always done things." Maybe, just maybe it's time to try something different.

 

[Catatonic]

What health care benefits? They are about to dump all those costs on the union.

The Teamsters don't have any money ... they get everything from UPS.
UPS will still be paying for Teamsters Healthcare, just like UPS pays for your pension.

The rest of your post is cool.
Maybe it is time.

 

[Ms.PacMan]

Amazon issued a statement saying that they will be reviewing the performance of delivery companies.

WOW!

This Amazon fiasco is embarrassing.

 

[Catatonic]

Amazon issued a statement saying that they will be reviewing the performance of delivery companies.

WOW!

This Amazon fiasco is embarrassing.

Like Amazon has options.
They are stuck with UPS and FedEx Ground and the really Slumdog LaserShip.