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The Latest UPS Headlines
UPS Finally Gets Smart and Cracks Down on Holiday Shippers
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<blockquote data-quote="cheryl" data-source="post: 2822166" data-attributes="member: 1"><p><a href="https://www.fool.com/investing/2017/05/06/ups-finally-gets-smart-and-cracks-down-on-holiday.aspx" target="_blank"><strong>UPS Finally Gets Smart and Cracks Down on Holiday Shippers - Fool.com</strong></a></p><p></p><p><em>After years of struggling to predict shipping demand for the December peak season, UPS is giving retailers a stronger incentive to provide accurate forecasts.</em></p><p></p><p>Consumers love being able to order gifts from online retailers like Amazon.com a few days before Christmas and have the parcels show up on their doorsteps in time for the holiday. After all, anything beats braving the crowds at malls in late December!</p><p></p><p>However, for package-delivery giants United Parcel Service (NYSE:UPS) and FedEx (NYSE:FDX), this trend has led to one nightmare after another. Some years they have been overwhelmed by demand, leading to missed deliveries. Other years, they have had too much capacity relative to the amount of last-minute shipping demand, driving up costs.</p><p></p><p>UPS is trying a new tactic to avoid these problems in the future. It will reserve the right to charge retailers if they reserve shipping capacity and then fail to meet their e-commerce targets. This will give retailers an incentive to meet (but not exceed) their forecasts.</p></blockquote><p></p>
[QUOTE="cheryl, post: 2822166, member: 1"] [URL='https://www.fool.com/investing/2017/05/06/ups-finally-gets-smart-and-cracks-down-on-holiday.aspx'][B]UPS Finally Gets Smart and Cracks Down on Holiday Shippers - Fool.com[/B][/URL] [I]After years of struggling to predict shipping demand for the December peak season, UPS is giving retailers a stronger incentive to provide accurate forecasts.[/I] Consumers love being able to order gifts from online retailers like Amazon.com a few days before Christmas and have the parcels show up on their doorsteps in time for the holiday. After all, anything beats braving the crowds at malls in late December! However, for package-delivery giants United Parcel Service (NYSE:UPS) and FedEx (NYSE:FDX), this trend has led to one nightmare after another. Some years they have been overwhelmed by demand, leading to missed deliveries. Other years, they have had too much capacity relative to the amount of last-minute shipping demand, driving up costs. UPS is trying a new tactic to avoid these problems in the future. It will reserve the right to charge retailers if they reserve shipping capacity and then fail to meet their e-commerce targets. This will give retailers an incentive to meet (but not exceed) their forecasts. [/QUOTE]
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