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UPS Partners
Regretting management
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<blockquote data-quote="pretzel_man" data-source="post: 805753" data-attributes="member: 927"><p>There was a very good video done when Oz Nelson was CEO. It was very candid and he talked about how the Management Committee blew it on RPS. This is before FedEx purchased them.</p><p> </p><p>He basically said that we were fat and happy and didn't evaluate the threat from this competitor. At that time, we didn't understand our own cost structure. We were overcharging on some segments and undercharging on others. RPS undercut us on the lanes (B to B) where we were undercharging.</p><p> </p><p>We changed our rate structure., put in the residential surcharge, got better at incentives, added hundredweight, etc.</p><p> </p><p>Again, he admitted that we were way to slow to react.</p><p> </p><p>Today, with every package they gain, their cost per package reduces. (More density). They have a huge cost advantage. They have an organizational advantage (RLA).</p><p> </p><p>We need to capitalize on our strengths.....</p><p> </p><p>We have better technology. An integrated network. We can offer services they cannot. AND, we have to keep our costs low.</p></blockquote><p></p>
[QUOTE="pretzel_man, post: 805753, member: 927"] There was a very good video done when Oz Nelson was CEO. It was very candid and he talked about how the Management Committee blew it on RPS. This is before FedEx purchased them. He basically said that we were fat and happy and didn't evaluate the threat from this competitor. At that time, we didn't understand our own cost structure. We were overcharging on some segments and undercharging on others. RPS undercut us on the lanes (B to B) where we were undercharging. We changed our rate structure., put in the residential surcharge, got better at incentives, added hundredweight, etc. Again, he admitted that we were way to slow to react. Today, with every package they gain, their cost per package reduces. (More density). They have a huge cost advantage. They have an organizational advantage (RLA). We need to capitalize on our strengths..... We have better technology. An integrated network. We can offer services they cannot. AND, we have to keep our costs low. [/QUOTE]
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