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How should company fix peak problems?
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<blockquote data-quote="JL 0513" data-source="post: 1248558" data-attributes="member: 50088"><p>It's easier said then done. The problem with this type of business where you double volume during about 3 weeks out of the 52 in a year is what happens to all the equipment and facilities and workers for the other 49 weeks. UPS already goes through the painstaking process of hiring many thousands of extra workers each December just to turn around and drop 'em like flies. </p><p></p><p>My everyday package car is 27 years old. Do you really think UPS would invest in thousands of extra trucks to sit around for 11 months a year? This is why they use rentals but delivering out of a Budget truck is lousy. Fixing the air problem - sure, we'll just buy a few dozen more planes just for December. No problem. Not to mention the vast wasted facilities if huge expansions occurred just to handle 3-4 peak weeks a year. </p><p></p><p>The better strategy is to better control the situation. Place a greater premium on air shipping during peak. Give people a reason to shop early. Perhaps even offer shipping discounts in November. People make decisions based on costs. It would work to spread peak out. And obviously better strategies between Amazon (and others) and UPS must be made. Amazon cannot except millions of air orders the week of Christmas. They need to set limits and be realistic with delivery estimates during peak.</p></blockquote><p></p>
[QUOTE="JL 0513, post: 1248558, member: 50088"] It's easier said then done. The problem with this type of business where you double volume during about 3 weeks out of the 52 in a year is what happens to all the equipment and facilities and workers for the other 49 weeks. UPS already goes through the painstaking process of hiring many thousands of extra workers each December just to turn around and drop 'em like flies. My everyday package car is 27 years old. Do you really think UPS would invest in thousands of extra trucks to sit around for 11 months a year? This is why they use rentals but delivering out of a Budget truck is lousy. Fixing the air problem - sure, we'll just buy a few dozen more planes just for December. No problem. Not to mention the vast wasted facilities if huge expansions occurred just to handle 3-4 peak weeks a year. The better strategy is to better control the situation. Place a greater premium on air shipping during peak. Give people a reason to shop early. Perhaps even offer shipping discounts in November. People make decisions based on costs. It would work to spread peak out. And obviously better strategies between Amazon (and others) and UPS must be made. Amazon cannot except millions of air orders the week of Christmas. They need to set limits and be realistic with delivery estimates during peak. [/QUOTE]
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