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Brown Cafe UPS Forum
UPS Union Issues
SurePost - A Subcontracting Violation that has led to the loss of many UPS jobs.
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<blockquote data-quote="beentheredonethat" data-source="post: 1023644" data-attributes="member: 4886"><p>Keep in mind, at the time of shipment the shipper and the carrier have no way of knowing if there will be a pkg going to the same address from another customer. They, the shipper, address it to our consignee (the USPS). There is a reason UPS started Basic, which has morphed to Surepost. It is because FDX bought a company that did this and rebranded it Smartpost. SHippers wanted and needed a lower cost option to deliver the packages. UPS was losing a lot of resi volume to FDX Smartpost. UPS fought back and offered Surepost. The good part is that we stopped many customer from diverting from UPS ground to FDX Smartpost, while also maintaining their air volume. (Often when a shipper migrates volume to FDX, they migrate all the volume). We won large customers from FDX by offering Basic\Surepost. Take LL Bean, we won the business that was FDX's for almost 20 years. They wouldn't have switched if it was 100% ground due to cost. We won on average 40,000 pkgs per day, granted many of them are BAsic\Surepost, but many are also ground, also 1K a day are NDA. If we got rid of Basic\Surepost, we would lose all that volume. </p><p></p><p>I 100% agree with you if UPS was the only shipper in existence. We aren't, we have very good competition that offers very very competitive rates and a variety of services in FDX. We need to compete against them, if we don't match them in this category, FDX will take all the volume.</p></blockquote><p></p>
[QUOTE="beentheredonethat, post: 1023644, member: 4886"] Keep in mind, at the time of shipment the shipper and the carrier have no way of knowing if there will be a pkg going to the same address from another customer. They, the shipper, address it to our consignee (the USPS). There is a reason UPS started Basic, which has morphed to Surepost. It is because FDX bought a company that did this and rebranded it Smartpost. SHippers wanted and needed a lower cost option to deliver the packages. UPS was losing a lot of resi volume to FDX Smartpost. UPS fought back and offered Surepost. The good part is that we stopped many customer from diverting from UPS ground to FDX Smartpost, while also maintaining their air volume. (Often when a shipper migrates volume to FDX, they migrate all the volume). We won large customers from FDX by offering Basic\Surepost. Take LL Bean, we won the business that was FDX's for almost 20 years. They wouldn't have switched if it was 100% ground due to cost. We won on average 40,000 pkgs per day, granted many of them are BAsic\Surepost, but many are also ground, also 1K a day are NDA. If we got rid of Basic\Surepost, we would lose all that volume. I 100% agree with you if UPS was the only shipper in existence. We aren't, we have very good competition that offers very very competitive rates and a variety of services in FDX. We need to compete against them, if we don't match them in this category, FDX will take all the volume. [/QUOTE]
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SurePost - A Subcontracting Violation that has led to the loss of many UPS jobs.
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