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How should company fix peak problems?
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<blockquote data-quote="HBGPreloader" data-source="post: 1245907" data-attributes="member: 19782"><p>I have to say that there were a lot of interesting replies - some good, some bad and, perhaps, a couple show that people really don't have a clue about running a business.</p><p></p><p>The fact is UPS is a for-profit corporation and they exist for only one purpose - to make a profit for their shareholders. Without that profit, UPS wouldn't exist.</p><p></p><p>There were, essentially, three factors that caused these delays - weather being one; the lack of resources being another; and (late) consumer demand being the final and most damaging factor.</p><p></p><p>Ordering more equipment, expanding centers and hiring more permanent employees to accomodate what is essentially a rush for a few weeks out of the year is just not cost effective.</p><p></p><p>I don't know the exact numbers. But, you have to figure that even 1 or 2 more vehicles for each center will likely cost hundreds of millions of dollars. When you add in additional trained staff, more equipment and expansions, the costs would likely be billions - if not more.</p><p></p><p>IMHO, the best comment by far is what TUT said..</p><p>"Put a reasonable "Order By/Ship By" Deadline out to the industry..."</p><p>Essentially, try your best to control your customers expectations. And, if anything, under-promise and over-deliver.</p><p> </p><p>It may not be the perfect solution. However, that and the usual additional seasonal preps, is a cost effective solution that would be more pleasing to the shareholders and a little more palatable to the customer.</p><p></p><p>For the record though, I do agree that the company is pushing workers a little too hard. And, in many circumstances, a little expansion would help the bottom line.</p></blockquote><p></p>
[QUOTE="HBGPreloader, post: 1245907, member: 19782"] I have to say that there were a lot of interesting replies - some good, some bad and, perhaps, a couple show that people really don't have a clue about running a business. The fact is UPS is a for-profit corporation and they exist for only one purpose - to make a profit for their shareholders. Without that profit, UPS wouldn't exist. There were, essentially, three factors that caused these delays - weather being one; the lack of resources being another; and (late) consumer demand being the final and most damaging factor. Ordering more equipment, expanding centers and hiring more permanent employees to accomodate what is essentially a rush for a few weeks out of the year is just not cost effective. I don't know the exact numbers. But, you have to figure that even 1 or 2 more vehicles for each center will likely cost hundreds of millions of dollars. When you add in additional trained staff, more equipment and expansions, the costs would likely be billions - if not more. IMHO, the best comment by far is what TUT said.. "Put a reasonable "Order By/Ship By" Deadline out to the industry..." Essentially, try your best to control your customers expectations. And, if anything, under-promise and over-deliver. It may not be the perfect solution. However, that and the usual additional seasonal preps, is a cost effective solution that would be more pleasing to the shareholders and a little more palatable to the customer. For the record though, I do agree that the company is pushing workers a little too hard. And, in many circumstances, a little expansion would help the bottom line. [/QUOTE]
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