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UPS can't compete because of high labor costs?
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<blockquote data-quote="sosocal" data-source="post: 614250" data-attributes="member: 16980"><p>the revenue per piece is way down...shippers are using a higher percentage of defered service levels...And FedEx is exploiting its cost advantage like never before giving out rates that are ridiculous - We either lose or cut our margins drastically. I woulnt say it is the end of the world for UPS....But it is not - nor will it be what it used to be. And in upcoming contracts the labor costs must be addressed...</p><p> </p><p>In the current cost structure - UPS cannot maintain and recruit solid mgt as they have cut salaries and benifits...There will be a revolving door when the economy turns around. The reason UPS has been able to compete at the cost disadvantage that we have had is our people... BETTER WORKFORCE... Better hourlies, and yes Better management -- Which leads to a BETTER MANAGED COMPANY... It is evident in our technology, systems and processes. But harder working employees will be surpassed by inferior counterparts that have better systems, technology and processes (better management)... An economic system will only thrive in the long term when the customers, workers, managers (executors, strategists) and shareholders (owners) share in a balanced system of sacrifice/ risk leading to reward. </p><p> </p><p>Right now I would contend that the workers bucket of availbale resouces is slightly out of skew inhibiting the system's use of shareholder reward (capital), Customer usage (revenue and margin) and management innovation to thrive long term. Particularly in a highly competitive envoronment.</p><p> </p><p>WOW - that felt like I was back in my college days.</p></blockquote><p></p>
[QUOTE="sosocal, post: 614250, member: 16980"] the revenue per piece is way down...shippers are using a higher percentage of defered service levels...And FedEx is exploiting its cost advantage like never before giving out rates that are ridiculous - We either lose or cut our margins drastically. I woulnt say it is the end of the world for UPS....But it is not - nor will it be what it used to be. And in upcoming contracts the labor costs must be addressed... In the current cost structure - UPS cannot maintain and recruit solid mgt as they have cut salaries and benifits...There will be a revolving door when the economy turns around. The reason UPS has been able to compete at the cost disadvantage that we have had is our people... BETTER WORKFORCE... Better hourlies, and yes Better management -- Which leads to a BETTER MANAGED COMPANY... It is evident in our technology, systems and processes. But harder working employees will be surpassed by inferior counterparts that have better systems, technology and processes (better management)... An economic system will only thrive in the long term when the customers, workers, managers (executors, strategists) and shareholders (owners) share in a balanced system of sacrifice/ risk leading to reward. Right now I would contend that the workers bucket of availbale resouces is slightly out of skew inhibiting the system's use of shareholder reward (capital), Customer usage (revenue and margin) and management innovation to thrive long term. Particularly in a highly competitive envoronment. WOW - that felt like I was back in my college days. [/QUOTE]
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