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UPS 20 yrs from now!
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<blockquote data-quote="RoyalFlush" data-source="post: 717132" data-attributes="member: 27311"><p>UPS will either replicate the FDX business model or they will be out of business. FDX is growing like gangbusters. UPS is struggling to hold on to what they already have. Owner operators and union concessions (non-union has been getting concessions for several years) will be necessary when there's no cost cutting left to cut (were getting close). As FDX improves efficiencies they'll easily continue to take market share in the core UPS business. Hopefully UPS will find a way to offset the loss of core business, but I don't see it happening. It's basic economics. FDX has a lower cost to serve and lower cost equals increased demand. Higher cost equals lower demand. FDX owner operators will continue to be motivated by profit opportunity, thus taking the most profitable packages. UPS will get the stuff FDX doesn't want and our employees will resist productivity as there is no incentive to work harder and no incentive to grow profits. Union employees (other's have no choice) won't accept concessions until the company is on the brink of disaster. It only takes a small reduction in revenue to wipe out all the profits when the fixed costs are high and profit margins as slim.</p><p> </p><p>White trucks - the last sacred thing standing will be the brown trucks, but they won't last much longer... </p><p> </p><p>Not wishful thinking or union bashing, just reality.</p></blockquote><p></p>
[QUOTE="RoyalFlush, post: 717132, member: 27311"] UPS will either replicate the FDX business model or they will be out of business. FDX is growing like gangbusters. UPS is struggling to hold on to what they already have. Owner operators and union concessions (non-union has been getting concessions for several years) will be necessary when there's no cost cutting left to cut (were getting close). As FDX improves efficiencies they'll easily continue to take market share in the core UPS business. Hopefully UPS will find a way to offset the loss of core business, but I don't see it happening. It's basic economics. FDX has a lower cost to serve and lower cost equals increased demand. Higher cost equals lower demand. FDX owner operators will continue to be motivated by profit opportunity, thus taking the most profitable packages. UPS will get the stuff FDX doesn't want and our employees will resist productivity as there is no incentive to work harder and no incentive to grow profits. Union employees (other's have no choice) won't accept concessions until the company is on the brink of disaster. It only takes a small reduction in revenue to wipe out all the profits when the fixed costs are high and profit margins as slim. White trucks - the last sacred thing standing will be the brown trucks, but they won't last much longer... Not wishful thinking or union bashing, just reality. [/QUOTE]
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