Interesting trends here

[upscorpis]

Excerpted from UPSers.com which got it from Parcel Shipping & Distribution:

Parcel Shipping & Distribution has been conducting the Annual Best Practice Survey for the past six years. Among survey respondents, UPS remains the leader in delivering ground shipments, with 64% of the respondents using its services (up 2% from '02), followed by USPS with 16% (up 3%), then FedEx with 13% (down 5%) and various others at 7% (no change from '02). UPS also leads in the express arena with 50% of shippers utilizing its 1- and 2-day service (down 2% from '02), followed by FedEx with 34% (down 4%), then USPS with 10% and others with 6%. For return delivery, UPS is also the carrier of choice with 60% of respondents choosing its services, followed by the USPS with 18%, FedEx at 14% and others at 8%. If the buyer pays the return cost, USPS eats into both UPS (taking 1% of its share) and FedEx (taking 6% of its share of the market).

The trend back to UPS and away from FDX has been predicted to occur as the the contracts customers were compelled to sign with FDX, due to the possible work stoppage, expire. This indicates that the tide has already begun to turn. It will be interesting to see if the trend amplifies as customers again are free to choose.

 

[brown39]

Some of the trend related to the success of the UPS Stores too.

 

[wkmac]

You know it's ironic that based on all the hype you'd think FedEx was cleaning our clock and this also translates into the investing community. But the portion of the article you posted concerning this survey seems to suggest at least in the case of these respondants that the reality is the opposite of what is being generally percieved and reported. FedEx is a master of communication and I tip my hat to them and yes they saw an advantage that to be honest we laid in their lap and the smart folks they are, they ran with it.

I also wonder however if UPS didn't also compound the preception damage with all the talk that FedEx was taking our business. Yes FedEx was taking some business but at the same time the economy was not exactly shaking the world either. The timing of the 2 events together just hurt but the company as it relates to it's internal spin to the employees was the whole thing was FedEx. Again part of that was true but IMO our recent struggle was not just a FedEx deal. With an employee base of several hundred thousand in the US alone you can bet this company message made it's way outside the company environs which again FedEx took and ran with. While we've lagged in shareprice the last couple of years FedEx has done rather well (20% shareprice growth YTD) but in reality which company has grown in a way that positions itself for the future? Which company is chasing to catch up with new business model and building a network and which company is established and is now setting out to create the new global market dynamics.

Kinda get a different way of thinking when you pose the question that way but I also realize both companies face challeges and that either one can capitalize on the others misstep. FedEx may have misstepped when they were handed a golden opportunity by UPS so now it is up to us to respond with integrity, professional and quality service that we can give. I also see this as a challenge for us Teamsters as the common perception is that union employees don't deliver economically or service wise and that non union do. I think it's time we just blow that theory to H*ll!
JMO.

 

[tomb]

I certainly agree that this is a golden opportunity. Our center is picking up some new volume, but it is also getting volume back that left.

Our summer volume was higher than planned and things still seem to be going strong.

Tom B

 

[dannyboy]

Guys

That is the kind of talk I like hearing. I like offense better than defense. Take the battle to FDX and makem wonder what we are up to!

d

 

[interested]

Good points all the way around.

I don't want to get into a huge debate about the Ups stores- but I think they are key to increasing public perception. The opportunities that we have to utilize these Ups stores to enhance Ups service is immense. Also, I like what I see in the stores I have been to. Ups has done it right, spent some money on a nice clean sign and all employees in the facilities I have visited are in a nice casual uniform and have been very professional.

I know there are a lot of kinks to work out in the intergration of the two modules, but this is a very positive thing for Ups and our image.

 

[ezrider]

I think wkmac stated it best.There is a difference between hype and reality.Does anybody remember that thread awhile back about the Money magazine article comparing UPS and FedEx?As many may recall,some so-called advertising expert lavished praise on FedEx's tv spots while chastising the "What can Brown do for You" campaign,saying that the color was synonymous with disease or whatever...

Poeple sitting in a dentist's office or waiting for a haircut might have bought into that tripe at face value.However in a recent edition of my Wall Street Journal,an article states exactly the opposite is in fact occuring.The "Brown" theme is starting to resonate with viewers while in fact FedEx had to yank the ads featuring the two motormouth office buddies due to it's lack of impact.

There's nothing wrong with advertising one's product and getting the name out there,but Fred S can only keep the accelerator floored on the hype machine for so long until the motor burns out or the tank runs dry.The numbers that upscorpis presented are sure telling a different story than that dubious whitewash article that Money Magazine would appear to suggest.

Perception can always get a quick start off the line,but the truth will always win the race in the end.

 

[upscorpis]

Although I agree about the UPSS being a contributor to movement of volume to UPS from FDX, my perception is that it wouldn't necessarily be reflected in this survey. The magazine Parcel Shipping & Distribution is targeted at warehouse operators. These aren't the type of customers that take things to the UPSS. They're more of the type that have daily pickups.

 

[wily_old_vet]

I've been reading the posts on this board for a while and figured it was time to jump in. I thought it was hilarious to hear Fred S say we were playing catchup when we announced the quicker package times coast to coast. Is it my imagination or isn't FDX ground trying to catch up to us.

Part of the problem in trying to gain new volume through the drivers is that many drivers are afraid that if they get a new shipper on their route their hours will go up. That's true up to a point but if you keep increasing the amount of pickup stops and packages in your area it will cause your route to become tighter. Everytime I get someone using one time pickups regularly I try to get them to switch to a daily pickup. There will be many days that these shippers have nothing to go but your pickup stop count will remain the same meaning that sooner or later they will have create new routes. JMO

 

[traveler]

Welcome vet
You make some good points there. The only comment I have is that Fred S is a true genius in manipulating the press and the street and has been for many years. I'm not too sure the powers that be at UPS will EVER catch up to him in this matter. Guess we will just have to rely on good people and good profits to get along!