If SCS is UPS's engine for future financial growth, we are in trouble. Analysts said that UPS put in a good performance in the first quarter, but that margins at the company's supply chain solutions business were disappointing. The supply chain solutions business acted as a bit of a drag on the results for the quarter. Although UPS' supply chain solutions and freight division revenue rose by 54 percent, the unit posted a loss of $25 million for the quarter. The more we make, the more we lose. Is the problem one of sales and marketing? Or, inferior technology? Or incompetent management?