Newest Amazon delivery trucks

[1BROWNWRENCH]

What exactly does VEM status mean?

Vehicle
Expense
Monitoring
Something expensive over $$ comes up and it's off to the grinder.

 

[scooby0048]

Vehicle
Expense
Monitoring

Oh, is that how you guys determine when to fix or when to scrap a vehicle? I ask because we had one of the Ford F250 styles that had over 500k. They spent something like $7500 replacing the engine and tranny then like a week later, the driver hit a deer and the truck only needed a new plastic grill and new headlight assembly.


They said they spent too much and sent the poor thing to scrap.

 

[Old Man Jingles]

Oh, is that how you guys determine when to fix or when to scrap a vehicle? I ask because we had one of the Ford F250 styles that had over 500k. They spent something like $7500 replacing the engine and tranny then like a week later, the driver hit a deer and the truck only needed a new plastic grill and new headlight assembly.


They said they spent too much and sent the poor thing to scrap.

UPS is flawed in their financial analysis because they look at total cost of a vehicle/project rather than looking at future costs and expected payback.
Sunk costs should be ignored when making a decision at a point in time.
I tried to change this at the Corporate level but the Accounting people wouldn't implement it.
Don't create waves.

 

[Brownslave688]

Oh, is that how you guys determine when to fix or when to scrap a vehicle? I ask because we had one of the Ford F250 styles that had over 500k. They spent something like $7500 replacing the engine and tranny then like a week later, the driver hit a deer and the truck only needed a new plastic grill and new headlight assembly.


They said they spent too much and sent the poor thing to scrap.

That probably had more to do with trying to charge the driver with 60k worth of damage.

Did that to me once. Busted radiator, grill and a new bumper. Time to send it to scrap and charge him with what it cost to replace it. lol

 

[UnconTROLLed]

UPS is flawed in their financial analysis because they look at total cost of a vehicle/project rather than looking at future costs and expected payback.
Sunk costs should be ignored when making a decision at a point in time.
I tried to change this at the Corporate level but the Accounting people wouldn't implement it.
Don't create waves.

determination and persistence cancel

 

[scooby0048]

UPS is flawed in their financial analysis because they look at total cost of a vehicle/project rather than looking at future costs and expected payback.
Sunk costs should be ignored when making a decision at a point in time.
I tried to change this at the Corporate level but the Accounting people wouldn't implement it.
Don't create waves.

Why do you suppose they treated you like you were just a cog in the wheel? Is accounting that omnipotent that they couldn't see past their numbers and take suggestions from an "outsider"?

 

[1BROWNWRENCH]

Oh, is that how you guys determine when to fix or when to scrap a vehicle? I ask because we had one of the Ford F250 styles that had over 500k. They spent something like $7500 replacing the engine and tranny then like a week later, the driver hit a deer and the truck only needed a new plastic grill and new headlight assembly.


They said they spent too much and sent the poor thing to scrap.

You'd be amazed at how much that plastic is.

 

[scooby0048]

That probably had more to do with trying to charge the driver with 60k worth of damage.

Did that to me once. Busted radiator, grill and a new bumper. Time to send it to scrap and charge him with what it cost to replace it. lol

The thing is, several drivers offered to get the parts from junk yards or from their own personal cracked up vehicles that were not running, or even pay for new parts themselves. This is a truck that a 75 year old drives over 300+ miles a day. We just wanted him to be comfortable and safe.

They wanted no part of our offers. The driver who hit the deer was not charged it was deemed unavoidable. They simply told us the vehicle has reached it's limit on what would be spent to keep it in the fleet. SMH...

 

[scooby0048]

You"d be amazed at how much that plastic is.

I know but, See above..

 

[Old Man Jingles]

Why do you suppose they treated you like you were just a cog in the wheel? Is accounting that omnipotent that they couldn't see past their numbers and take suggestions from an "outsider"?

Basically, that's the way they always done it ... why change?

 

[zubenelgenubi]

Because ups offers a service to take a product to a person's doorstep. It doesn't take unprofitable packages(most of the time).
Amazon owns the product and to be competitive or undercut a local businesses price must get it to a person's doorstep for very little $.

I think you missed the point of my question.

 

[Old Man Jingles]

determination and persistence cancel

Nothing in it for me ... you lead a horse to water but you can't make it think.
Including 'sunk costs' is a common mistake and although it is not logical, the right decision is probably made.
Not my battle because it did not affect me personally.

 

[scooby0048]

Basically, that's the way they always done it ... why change?

Good point, what was I thinking.

 

[UpstateNYUPSer(Ret)]

UPS is flawed in their financial analysis because they look at total cost of a vehicle/project rather than looking at future costs and expected payback.
Sunk costs should be ignored when making a decision at a point in time.
I tried to change this at the Corporate level but the Accounting people wouldn't implement it.
Don't create waves.

AKA throwing good money after bad.