If UPS was a starting small company, could it survive?

[Mike23]

So, after mess up upon mess up this week at work I was curious about what everyone thinks about this? If we were to start the company from scratch today, with the way things are currently being managed and our customer service capabilities, would UPS survive without it's prolonged reputation to back it up?

I don't think it would. I think it's lost touch with what it was and has turned into a cash cow, money machine. I realize it's a business but after seeing 'no exceptions to this rule' to small accounts and then doing the complete opposite to larger accounts, I can only deem that eventually another company could compete with it by offering GOOD customer service to the small accounts which would make the larger accounts curious about what the other company has to offer to get all the little guys going to them. After all, if you combine multiple small companies, wouldn't they bring in the same intake as a big company?

If it also started out today, it would also be likely everyone would be making less. Would anyone actually take this job for under $20 as a driver knowing what it entails? Knowing the stress it causes both at work and in the home environment from being home late 5 nights a week?

I also look at all the money wasting going on in the company by our management personnel. Is it because they're overworked and darn tired, incompetent or both? How much money does it cost the company to fire a driver over something stupid (lets say not punching in break to pee). then they have to hire a new driver (and train him) after firing the other driver for peeing. They then would go through the grievance process only to have it overturned AND the driver receive all back pay. I can only assume, eventually it would collapse into bankruptcy from sheer incompetence, poor customer care and poor spending habits...Also from some of my bad grammar

 

[brownmonster]

No, I don't think it could. Simple philosophies that we had in the old days do not apply anymore. Namely setting up loops and routes to DELIVER BUSINESS STOPS FIRST. Do not get why this is so hard for mgmnt to understand.

 

[Raw]

How can UPS be considered a small company? Very laughable

 

[brownmonster]

How can UPS be considered a small company? Very laughable

Pay attention. The OP was asking if we were to START THE COMPANY FROM SCRATCH TODAY would we be able to survive the way the company is run.

 

[Raw]

Pay attention. The OP was asking if we were to START THE COMPANY FROM SCRATCH TODAY would we be able to survive the way the company is run.

Still very laughable. Start it by just delivering to a small town?

 

[klein]

They wouldn't survive if they started in the USA. I think most of thier good profits come from overseas, like a person named "Darkangel" , from the Phillipines, that only gets paid $12 a day working for UPS there.
Thats how UPS makes thier money.
Basically, most of it's workload is outsourced.

 

[UpstateNYUPSer(Ret)]

This may be an unpopular opinion on this forum, but the ideal way for a new UPS to survive would be to adopt the IC model used at FedEx Ground. It is no secret that our labor costs have become prohibitive and are a factor in our declining market share, along with the focus on numbers at the expense of customer service. Eliminating the employee (and, as a result, the union) from the equation would give them a competitive edge in the marketplace.

I think you may see a two tiered wage system incorporated into our next contract, along with all employees paying for a portion of their health care. We have got to control our costs and increase our market share in order for us to survive. If it were not for the diversification and the resulting profits, we would be in much worse shape that we are IMO.

I need just 10 more years to get my 30 but can leave at 25 and still get medical benefits (and a reduced pension). With the direction this company is heading the 25 is beginning to sound good.

I had a sales lead ride with our district manager last week. He rode with me for 2 hours so we had a chance to talk about a lot of topics and he told me that the number one topic is cost reduction and that we have only seen the tip of the iceberg thus far. He stressed the need to regain market share and said that things will get worse before they get better.

 

[klein]

They wouldn't survive if they started in the USA. I think most of thier good profits come from overseas, like a person named "Darkangel" , from the Phillipines, that only gets paid $12 a day working for UPS there.
Thats how UPS makes thier money.
Basically, most of it's workload is outsourced.

And to add to this:

Why do you think DHL is still everywhere else in the world, operating fully normal?
Even the borders south and north of America , (Canada and Mexico).

Someone on here should be able to answer that one.

 

[UpstateNYUPSer(Ret)]

And to add to this:

Why do you think DHL is still everywhere else in the world, operating fully normal?
Even the borders south and north of America , (Canada and Mexico).

Someone on here should be able to answer that one.

The rest of the world is content with subpar service?

 

[JimJimmyJames]

Costs go down with the IC model but does the quality go up? I have never heard anyone describe FedEx Ground as a customer service oriented company.

Other then that, I agree that cost control is our major problem. And this is only because we are competing against a company with a questionable business model that the government will not reign in, even though it would be in the goverment's best interest to do so.

 

[cachsux]

Still very laughable. Start it by just delivering to a small town?

There are independent drivers who do just that,successful too. A family near us runs a potato farm,own their own trucks,when the trucks are empty from making a delivery of spuds or in the off season they move freight.

 

[klein]

The rest of the world is content with subpar service?

I would probably get my DHL package sooner in the day, since I know most UPS drivers don't start with rezis until the end of the day (after 5pm or later).

 

[cachsux]

They wouldn't survive if they started in the USA. I think most of thier good profits come from overseas, like a person named "Darkangel" , from the Phillipines, that only gets paid $12 a day working for UPS there.
Thats how UPS makes thier money.
Basically, most of it's workload is outsourced.

Are you naturally full of beans or is it something you work at?

 

[klein]

Are you naturally full of beans or is it something you work at?

Go talk to Darkangel yourself. She is often in chat. Say a quick hello !

 

[UpstateNYUPSer(Ret)]

I would probably get my DHL package sooner in the day, since I know most UPS drivers don't start with rezis until the end of the day (after 5pm or later).

My deliveries, including residentials, are usually done by 1430, which is when I start my pickups.

 

[browniehound]

This may be an unpopular opinion on this forum, but the ideal way for a new UPS to survive would be to adopt the IC model used at FedEx Ground. It is no secret that our labor costs have become prohibitive and are a factor in our declining market share, along with the focus on numbers at the expense of customer service. Eliminating the employee (and, as a result, the union) from the equation would give them a competitive edge in the marketplace.

I think you may see a two tiered wage system incorporated into our next contract, along with all employees paying for a portion of their health care. We have got to control our costs and increase our market share in order for us to survive. If it were not for the diversification and the resulting profits, we would be in much worse shape that we are IMO.

I need just 10 more years to get my 30 but can leave at 25 and still get medical benefits (and a reduced pension). With the direction this company is heading the 25 is beginning to sound good.

I had a sales lead ride with our district manager last week. He rode with me for 2 hours so we had a chance to talk about a lot of topics and he told me that the number one topic is cost reduction and that we have only seen the tip of the iceberg thus far. He stressed the need to regain market share and said that things will get worse before they get better.

Its my opinion that you are dillusion and UPS will be just fine when the economy recovers. UPS' efficency trumps any cost-saving measures that Fed-Ex enjoys.

I don't need to see the numbers. My opinion is based on the eye-ball test. We have six UPS drivers and one Fed-Ex ground driver in my town. So, my eyeballs tell me if a company can make money with one driver in a town, the other is making much more with six drivers in the same area.

I'll start worrying when the town is down to 4 drivers. I don't see this happening because 3 days of the last 3 weeks we added 2 routes to make 8 drivers in the town.

If UPS was really desparate for profit, they would have just eliminated the 2 extra routes.

Its not about business where I deliver. My busineses are getting a healthy share of parcels and my house calls are out of control! Throw in LL Bean now, and I'm stopping at every other house!

If there is a problem at UPS, maybe its the business plan?

 

[UpstateNYUPSer(Ret)]

BH, the question was not about UPS to day but if UPS were to start out as a small company today and what would be its' chances for survival in today's economy.

 

[Dustyroads]

Start-up companies always have to employ different strategies than a giant who has been in the business for over a century. Small companies have different business plans than large ones, as it should be if either are to be successful. I think the brown hound was correct when he said, no one matches UPS's efficiency. The ability to operate efficiently is greatly enhanced by UPS's huge size.

All UPS needs is more packages. Everyone knows that. The more packages we have, the greater potential we have for greater efficiency. However, our inability to maintain service is what has cost us business, and until we make a real commitment to improved service, we can expect no big increase in volume.

All customers want is for their package to be delivered on time and intact. If we break or lose their package, they have a reasonable expectation that we will pay their claim promptly. Businesses would like to have their deliveries in the mornings, and, generally, would like to have their pickups made in the afternoon. Residential delivery customers really don't care when we come by, but would like us to be consistant.

More than anything, customers would like to think we care about their business and their packages. If we were loyal to our customer's needs, our customers would be loyal to UPS.

 

[Mike23]

If we were loyal to our customer's needs, our customers would be loyal to UPS.

I like that one. It's a shame it's only theory and not practice since most of my customers feel this way and have told me so multiple times.

 

[Dustyroads]

Time for a confession: I lifted that idea from another upser.

In 2003, then UPS CEO Michael L. Eskew wrote, “…when it comes to customer loyalty, many companies are asking the wrong question. They ask, ‘How do I make my customers loyal to my company?’ What they should be asking is: ‘How do I make the company loyal to my customers?’ A flipping of the nouns makes all of the difference.” Eskew goes on to note, “if we’re more concerned with how our company can demonstrate loyalty to our customers, we’re more inclined to make fundamental changes in our business process to accommodate our customers.”