UPS’s $20 Billion Problem: Operations Stuck in the 20th Century

Discussion in 'The Latest UPS Headlines' started by cheryl, Oct 14, 2018.

  1. cheryl

    cheryl I started this. Staff Member

    UPS’s $20 Billion Problem: Operations Stuck in the 20th Century- Wall Street Journal

    As the package giant tries to satisfy America’s 21st-century shopping-and-shipping mania, it is striving to bring its delivery network out of a past era

    In the sticky Southern heat, hundreds of workers streamed in for the 11 a.m. shift last month at [United Parcel Service Inc.’s local package-sorting facility, one of dozens nationwide that help it move millions of parcels daily.

    In a windowless room, a 30-year-old analog control panel about the size of a chest freezer monitors operations, with rows of green and red lights indicating when something goes awry in the building’s web of conveyor belts.

    “Thirty years ago, this was top-notch,” UPS plant engineering manager Dean Britt said of the control panel. Today, the panel’s computing capabilities “can probably fit on your phone,” he said, “and not even a good phone.”

    The site, and other similar UPS facilities, haven’t automated much over decades—despite a rush of new warehouse technology in many industries. Today, the company is paying a price.
  2. cosmo1

    cosmo1 Perhaps. Staff Member

    UPS dropped the ball after the '97 strike when they failed to acknowledge the internet and online shopping and were determined to become a B2B shipper.
  3. zubenelgenubi

    zubenelgenubi Well-Known Member

    This is a big reason why the new contract isn't better, UPS wants the employees to subsidize their upgrades.