Rumor some big accounts going to fed ex.

barnyard

KTM rider
There probably is not any account that UPS could say, "This one will never switch." We have some advantages over our competition. As the competition grows, some of those advantages are going to go away.
 

Overpaid Union Thug

Well-Known Member
Losing Amazon would be a job killer for us. Even if it is only swapping percentages. Someone in another thread (said he was a steward) mentioned that he didn't think UPS could sustain it's competitive edge with our high wages. Maybe he was on to something. Are we headed down the same dark path that the some of the unionized auto workers let themselves be dragged down? Or has the UPS sales team just failed once again? I think both.
 

Bubblehead

My Senior Picture
These rumors always swirl around contract time.
This type of smoke and mirror scare tactics wont cloud the fact that this company is raking in record profits.
We should not accept any concessions in the upcoming contract.
 

Backlasher

Stronger, Faster, Browner
What's wrong with our transit time? How does FedEx do it faster or better? I can understand the price problem. Btw-I shipped a Christmas pkg to our relatives....$17! The box was valued at $100....nearly 20% of value. Expensive to ship? I think so. BTW- I was told we are not making money on some of our accounts.....we have them just for the volume...I guess. Isn't that what FedEx does?

The only reason why FedEx might have better transit time would be that they have low volumn to handle compared to us. I believe that if they had our volumn, they would fail.

Their systems and work ethics in their labor end would not be able to handle it and it would be a dramatic shock to their work force.

They are not mentally, nor physically geared to be able to produce the pieces as we do per minute , hr, etc...

I hear FedEx drivers cry over their little 140 stop "peak day". Let's see how long they can keep up with service on a daily bases.

I bet BIG $ they would end up lossing accounts due to service failure, not on price!!!!!
 

barnyard

KTM rider
I bet BIG $ they would end up lossing accounts due to service failure, not on price!!!!!

It would be best not to let them grow to the point where we can find out.

I would also say that betting against Fed Ex would be a bad bet. UPSers have been betting against Fed Ex since they were a start up. They are still here.
 

lazydriver

Well-Known Member
I use to run sleeper team when ups first started it back in 97, it was for running air packages over ground. When did it change? We only went from hubs to airports.
 

Backlasher

Stronger, Faster, Browner
I agree . Growth can provide them with more capital to envest in productivity. I still think their drivers are yrs behind in their production standards. Their weakness is in contract drivers of low performance and cost per driver savings will be lost because thety will need 1.5 drivers to produce what ours do and that 1/2 driver handling the extra volumn will eat into their profits.

With cost savings of contractors, you also loss power over their productivity.

Many times in bad weather, I've seen Fedex fail to do pickups , yet we still push. you just can't keep large volumn with those kind of standards. Speaking of which, We need to focus this contract, not on raises but more routes so we can provide better quality service instead of being agressive, pushy producers!!!!!

Put our profit envestments in more drivers, cleaner routes that are more capable of service, we make enough hrly. That's is where our problems lay. Many routes, our commercial are to spread out and we struggle to do QUALITY Pick-ups. if we have routes loaded with 24 pickups in a 1.5 hr span and a few of them surprise us with a heavy pick-up, we fail or are embarisingly late for pick-ups that fall after.!!!!! We need more time for service and that will only come with more Drivers, and less work on dlivery, or pick-up end. Not on hrly rate!!!

also, it needs to be in stone, not just a contract like after 97 strike. If no raise then no raise in work load either, Put the $ were the routes are needed!!!!
 

pretzel_man

Well-Known Member
The only reason why FedEx might have better transit time would be that they have low volumn to handle compared to us. I believe that if they had our volumn, they would fail.

Their systems and work ethics in their labor end would not be able to handle it and it would be a dramatic shock to their work force.

They are not mentally, nor physically geared to be able to produce the pieces as we do per minute , hr, etc...

I hear FedEx drivers cry over their little 140 stop "peak day". Let's see how long they can keep up with service on a daily bases.

I bet BIG $ they would end up lossing accounts due to service failure, not on price!!!!
!

With all due respect, I'd be happy to take that bet....

The internet and on-line shopping has changed the game. Margins are low and consumers want low price including shipping.

Go look at Best Buy and Amazon....

Best Buy outlasted other competitors based on their service and sales staff. But....

Amazon is eating their lunch based on price. Best Buy is now forced to price match Amazon.....

I wish shippers only asked for service.
 

Brownslave688

You want a toe? I can get you a toe.
Losing Amazon would be a job killer for us. Even if it is only swapping percentages. Someone in another thread (said he was a steward) mentioned that he didn't think UPS could sustain it's competitive edge with our high wages. Maybe he was on to something. Are we headed down the same dark path that the some of the unionized auto workers let themselves be dragged down? Or has the UPS sales team just failed once again? I think both.[/QUOTE]

The sales team is really terrible. I have customers who have been waiting for freight and possible surepost quotes for years now. Every 6 months or so I ask if they ever heard anything and when they say no. I put in another sales lead and tell my center manager and everything. They never hear anything.
 

Brownslave688

You want a toe? I can get you a toe.
With all due respect, I'd be happy to take that bet....

The internet and on-line shopping has changed the game. Margins are low and consumers want low price including shipping.

Go look at Best Buy and Amazon....

Best Buy outlasted other competitors based on their service and sales staff. But....

Amazon is eating their lunch based on price. Best Buy is now forced to price match Amazon.....

I wish shippers only asked for service.

What no one mentions is amazon is losing money. Their margins are so small they don't exist.
 

barnyard

KTM rider
What no one mentions is amazon is losing money. Their margins are so small they don't exist.

They will be in business long enough to put Best Buy out of business.

Those that want service will certainly pay for it. They will not be the majority though. If they were, Wal Mart would not be the #1 retailer in the states. History here is that low price always wins.
 

Jack4343

FT DR Specialist
Solution for this whole problem with FedEx. Unionize their ground employees and get the states to make them eliminate their "Independent Contractor" business model and even the playing field and the difference in pricing and transit times goes away. While I've had my issues with unions and don't agree with many of their stances on things, I feel that this is the only way to compete with FedEx in the long haul. Eliminate their advantage and even the playing field. With UPS and FedEx on an even playing field, we win hands down and if we don't, then it's our own darn fault.
 

Grammarly1959

Active Member
The rumor on the fed ex board is ups is going to lose a lot of volume from 3 major accounts starting January 2nd. If true this may affect how some of us bid routes. My route would be affected dramatically if we lost amazon prime volume.

I know that a company I do a lot of mail order for clothing from is switching to FEDEX as of 1/1. I was disappointed to learn this when they notified their customers; I don't think FEDEX has ever delivered to my house, but UPS is here all the time.
 

'Lord Brown's bidding'

Well-Known Member
The sales team is really terrible. I have customers who have been waiting for freight and possible surepost quotes for years now. Every 6 months or so I ask if they ever heard anything and when they say no. I put in another sales lead and tell my center manager and everything. They never hear anything.

Do you have your sales mgr's number? I have mine, and when the tradtional chain fails I have no compunction calling them. Sometimes, like any of us, they are juggling a lot and just need a reminder. I find when I speak to the sales team that they'll come back to me with report about their efforts even if I may have forgotten. They care for their jobs as much as we care about ours, maybe more (takes a special person to be in sales). We drivers often lament how we are "setup for failure". Given what they are up against in selling our product vs what FedEX is currently offering, I feel for them.
 
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