Catatonic
Nine Lives
Or manage the task so that available resources and personnel can execute the task.
How should company fix peak problems?
- Thread starter brown67
- Start date
Catatonic
Nine Lives
UPS, Amazon, WalMart
That's what UPS did and why it happen...they managed it into failure....
Catatonic
Nine Lives
It's obvious that UPS failed ... that goes without saying.
To mindlessly blame UPS without doing analysis of the components and looking for systemic solutions is simply bitching.
UPS is not going to increase their capacity for 4 or 5 days peak volume - that's just plain stupid.
And believe me, the
shippers like Amazon are not going to pay for that capacity.Looking at the fulfillment system, of which UPS is a component, is a fundamentally stronger approach with a greater chance of success.
However, if you want to whine and bitch like little girlie men, then BC is here for you as well.
BakerMayfield2018
Fight the power.
Sometimes no matter how
. I wish this were true. Unfortunately it's kind of like trying to teach a 10 year old dog new tricks. Not likely to happen. Even though you show it and show it and show it. Just won't learn
'Lord Brown's bidding'
Well-Known Member
A few people here keep bringing up hiring extra staff to be adequately prepared. We all have seen articles mentioning how hard UPS had it hiring seasonal extras this year, especially in places like Louisville, where companies who depend on UPS have built distribution centers that pay better than UPS for those positions. And not everyone wants to make the jump to driver on the inside.
Then there is what is to be done with the new hire drivers once peak does settle down, and it will. At least in my center/hub, ouside of peak and vacation season they really aren't needed. They may get to work two or three days a week, but it is highly frustrating for them and many would rather not, which ends up wasting money. Even still, we have a fair amount of guys who have made seniority just since June who are going to have a tough go of it real soon. It is not easy to insure against overwhelming peaks, because the most valuable commodity-people-can't just be stored out of sight the other 7 months or so they aren't really needed (counting peak and the summer rush).
Then there is what is to be done with the new hire drivers once peak does settle down, and it will. At least in my center/hub, ouside of peak and vacation season they really aren't needed. They may get to work two or three days a week, but it is highly frustrating for them and many would rather not, which ends up wasting money. Even still, we have a fair amount of guys who have made seniority just since June who are going to have a tough go of it real soon. It is not easy to insure against overwhelming peaks, because the most valuable commodity-people-can't just be stored out of sight the other 7 months or so they aren't really needed (counting peak and the summer rush).
Feeders101
Well-Known Member
It's obvious that UPS failed ... that goes without saying.
To mindlessly blame UPS without doing analysis of the components and looking for systemic solutions is simply bitching.
UPS is not going to increase their capacity for 4 or 5 days peak volume - that's just plain stupid.
And believe me, the
Looking at the fulfillment system, of which UPS is a component, is a fundamentally stronger approach with a greater chance of success.
However, if you want to whine and bitch like little girlie men, then BC is here for you as well.
I know we do some of this, but what about building more dedicated loads at the fulfillment centers; instead of running all this volume through the hubs?
'Lord Brown's bidding'
Well-Known Member
It's obvious that UPS failed ... that goes without saying.
To mindlessly blame UPS without doing analysis of the components and looking for systemic solutions is simply bitching.
UPS is not going to increase their capacity for 4 or 5 days peak volume - that's just plain stupid.
And believe me, the
Looking at the fulfillment system, of which UPS is a component, is a fundamentally stronger approach with a greater chance of success.
However, if you want to whine and bitch like little girlie men, then BC is here for you as well.
SO, I keep hearing about all these trailer full of Amazon volume that were held to the side. I'd let Amazon know upfront they'll get lower priority this time of year, sort ALL of their packages into their own trailers, and slowly feed that stuff into the system as it allows. Same thing with Walmart. However, Peaks always ends, and when they do, how likely is it these companies will turn around and bite us. By then, Fed Ex would be more than happy to take everything. I kind of believe this was Fed Ex' plan all along: let UPS fall flat on their face, ad then take as much as FedEx wants/can handle.
'Lord Brown's bidding'
Well-Known Member
What's a "fulfillment center"? How is it different from a hub? Also, in the end someone has to deliver it all, and it can be hard making sure there is enough.
raceanoncr
Well-Known Member
They've tried that here with many high volume shippers. Some worked, some didn't. Trying to get them to separate volume into destination specific trailers is almost impossible. They don't care. If they can dump it all in one without scanning, looking at labels, sorting, etc. when UPS can do it, then why do it?
'Lord Brown's bidding'
Well-Known Member
Is it Hoax? Is there no cost-effective way to build some cushion into the system without upsetting the board and shareholders too much? Would it be wiser to just, on certain things, go ahead and do UPS, and take a little hit on the stock price?
A railroad I know-either BNSF or Canadian National-did something like that, building miles of track and upgrading facilities in anticipation of the end of the recession, which at the time wasn't in its decline yet. Shareholders growled, but they continued on. Activist shareholders tried to barge in and change things, but the company held firm, and came out far ahead than most of their competitors. Could efficiently surviving a peak like this and swallowing all that revenue in such a short period of time with minimal headaches not PAY for the excess cushion over the year?
cachsux
Wah
That would involve Amazon, or any shipper, to do sorting in their facility at their expense. Not going to happen. At best they sort into trailers by region and a UPS hub breaks it down from there.
raceanoncr
Well-Known Member
As I've said before on here, years ago I actually heard a feeder supe talking to a customer on the phone, "We wished you wouldn't ship so much stuff. We don't have the capacity for it".
I wanted to bolt across the counter and smack him.
'Lord Brown's bidding'
Well-Known Member
Never mind the "fulfillment center" question. I got it. Too late to edit the comment, though.
'Lord Brown's bidding'
Well-Known Member
You still feel that way now?
Catatonic
Nine Lives
I understand it is therapeutic to get all emotional and release anger and frustrations. I do it too but at some point, you have to get back to reality and the business at hand.
The people who you feel should be held accountable are the ones that approved the plans and they are very good at spinning things so the blame never gets put on them. So realistically, forget that.
The people who are so vociferous about the "UPS fail" are not the decision makers deciding whether UPS will be getting the volume or not. For the most part, they are the "National Enquirer" media (pretty much all of the media I guess) and the consignees. Consignees almost never are the decision makers but if some did select UPS NDA, hopefully they got their packages.
The real decision makers will look at UPS and make them the scapegoat but will in the safe enclosure of their meeting rooms, acknowledge that UPS did a very good job (much better than FedEx) and go about their business until next peak. One thing is for sure, they will not float the option of paying UPS or other carriers the extra money to invest in capacity to handle their peak 4 or 5 days of volume and in particularly, the last 3 days before Christmas in 2014.
UPS will continue to get the bad press and Amazon can have plausible deniability and the wheel keeps on turning.
Just as the Teamsters will not accept any blame either during contract negotiations. It will be the same as always, UPS will take the blame and until next contract negotiation time. Same old, Same old.
raceanoncr
Well-Known Member
Catatonic
Nine Lives
All involved = 1) Buying customer 2) Shipper 3) UPSers ?
SignificantOwner
A Package Center Manager
We were fu**ed starting cyber weekend. This is more than a 4 or 5 day issue.It's obvious that UPS failed ... that goes without saying.
To mindlessly blame UPS without doing analysis of the components and looking for systemic solutions is simply bitching.
UPS is not going to increase their capacity for 4 or 5 days peak volume - that's just plain stupid.
And believe me, the
Looking at the fulfillment system, of which UPS is a component, is a fundamentally stronger approach with a greater chance of success.
However, if you want to whine and bitch like little girlie men, then BC is here for you as well.
Catatonic
Nine Lives
I will have to take your word on that (locally) for this peak.
I saw the ebb and flow across the nation and it seemed like another tough peak until the ice storms hit the country and then it fell apart.
I was speaking about peaks in general. There is usually 4 - 5 days where the system is pushed beyond capacity and has to catch up.
My contention is that when this happens, the plan is working as planned.
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