I don't like to see any package leaving, especially from an old customer like Spiegel. However, they have been in some dire financial straights the last few years, and may be forced to the low bidder. Note that we kept the Air stuff. I think, over time, if they recover their popularity in the Marketplace, the UPS value proposition will at least get the Eddie Bauer back, and possibly all. It is nice to see we hold the line on profitability and yield.
The post office coninues to see volume evaporate in both package and first class mail areas. Over 50% of the population will be using electronic bill presentation and payment within a very few years. Yet they continue to raise rates. In the xase of Spiegel, what money can they make delivering ONLY the last mile. SPiegel made the wrong long term decision here.
Besides, the USPS is a 'mail' dominated organization.
LL Bean changed carriers to save money, same as Spiegel. I remember their nice letter to us saying, in part, that if they didnt change carriers, they would have to start charging their customers for shipping.
Isnt it the same thing? We walked away or They changed carriers? We probably "walked away" from Spiegel too after they asked us to beat the USPS offer.
You will see the lowest-cost alternative more as time goes on in this weak economy. What else can a customer pressed to the wall do? Our highest-cost wage structure means we will be turning down more "opportiunities" in the future. Hopefully we can move enough revenue to non-Teamster-related business segments to keep us moving forward on profitability. Like the steel workers of the 70's, UPS contracts will be costing UPS people their livelihoods. Diversification and non-Teamster businesses are the way to stem the decline of a great company.
Even the Teamsters move away from union laborers when they choose their labor. A good example is the union hall they built out west where they used non-union labor to build it. Their reason? Cost...plain and simple...and they admitted it!
Sad to say, UPS will have to move more of their business to "products" that won't require Teamsters to move them so they can increase revenue. It's the only way a company can survive.
Thanks. I also believe the teamsters may need to become a little more vocal as a union. A non-union fedex doing so well is a threat to the existence of the teamsters. Hoffa needs to come out a little more vocally against companies that subscribe to non-union carriers.
Hey VGPA, you must have a better reason to request then that! How about getting more UPS jobs and revenue?
By the way, we all should be using electronic bill payment to keep the money away from the USPS. I've been using Quicken to pay bills for about 5-6 years and never had a problem except when I make the mistake. It works great and deprives the competition for the money to compete with UPS unfairly.
Nope, that is the reason. UPS' service is far more superior than the USPS.
As far as more revenue , UPS IS the #1 delivery company, aren't they? And about adding more jobs? How about hiring more drivers to lighten there load , so they're not working 10 hrs a day? I doubt they need to hire any more indian chiefs, they get paid to much and do little or no physical work.
VGPA talk to your brothers in the Teamsters if you want the management to do some more of the physical work. I don't know of too many management folks who don't want to do some of the work, but they would be brought up in an instant if they did Teamster work.
There were many, many times when my husband went on the road delivering, working on the belt , unloading trailers, etc. He went to work in his browns everyday, because he worked. No one filed a grievance or complained that he stole work from the teamsters. He got along well with his drivers, maybe thats why UPS wanted him out. Well, thats another story.