UPS In an Acquiring Mood?

Discussion in 'The Archives' started by peacock71, Oct 14, 2002.

  1. peacock71

    peacock71 Guest

    So how about a new stream of thought? Maybe with our cash position and so many LTL, Logistics, Software (I2, MANU) companies way down in price, maybe UPS is considering a little cream skimming of its own. That is, if the cream isn't sour. How about CNF and Menlo? What will UPS do to shake up the logistics and transportation market over the next year? Takes two to partner.

    Go UPS!
  2. wkmac

    wkmac Guest

    You posed a great question and after more than a week I'm disappointed that nothing further has been added. I was really looking forward to seeing others pose some thought provoking ideas or insight but I guess that's not the case. I don't know if UPS will spend and expand over the next year but I look for them to further exploit the services we aquired when we purchased Fritz.

    The recent announcement about Ocean Transport IMO was very exciting but could UPS be looking at a stake in a railroad next? I know this is loaded with pitfalls that I've not thought of but for the sake of discussion what are the odds UPS will have Brown trains clacking down the tracks one day?

  3. upsadvisor

    upsadvisor Guest

    I cant say I would be happy to see UPS aquire any rail road assets.

    This is a highly reglated industry and the cost are sky high and the margins razor thin.

    UPS has issued a fair amount of debt in the last year and as the economy continues to stuggle it makes good sense to aquire businesses that are a good fit and can add to EPS growth right away.

    One can conjecture that with a great balance sheet and cash UPS may be looking to expand and I would be happy to see the cash either spent on growing the business, reitirng debt or raising the dividend.

  4. upscorpis

    upscorpis Guest

    Another thing to potentially consider is that there is still integration occurring with the multiple past acquisitions. It may not be prudent to add more into the mix until the others are fully integrated and functioning seemlessly as part of UPS. There's a lot of expense involved in those efforts that's more difficult to offset in this economy. A counter thought is that UPS should spend some of the nest egg to bankroll these things as a better use of available cash. Just throwing out ideas....
  5. peacock71

    peacock71 Guest

    I think there are plenty of opportunities to partner with big software(ERP), or existing logistics organizations to either expand, complement, or improve speed to market of the UPS Value proposition. The economy being stagnant has many potential targets ripe for the plucking, in some cases desparate.

    Go UPS!
  6. peacock71

    peacock71 Guest

    Acquiring railroad assets would throw us off track, and require at lot of training.

    Go UPS!
  7. wkmac

    wkmac Guest

    LMAO @ P71!!!!!!

    I guess you'll sing David Allen Coe's Train Song next!

    Also enjoyed the comments and opinions of the others in this thread as well. As for the railroad idea I was just thinking out loud and a "what if" scenario.
  8. peacock71

    peacock71 Guest

    I've always admired your train of thought....

    UPS should continue to add value with acquisitions, havn't seen anything in some time.

    Go UPS!
  9. wkmac

    wkmac Guest

    Well I just thought I'd try something different rather than engaging in some of the "railing" that is taking place in other threads.

    Part of the reason I was thinking about a railroad is over the years more and more complaints have come about truck traffic on the interstate systems while trucks seems to increase in numbers as well as a desire to pull triples natinwide. Also traffic problems are creating nightmares for schedulers, dispatchers and even drivers thmeselves. Several months ago I read an article about making seperate truck only corridors where triples could be run and move truck traffic at a higher overall speed thus bumping up time-n-transit nationwide. One of the areas discussed to do this was along rail right of way corridors and my thinking along with the obvious benefits of UPS owning it's own railroad would be access fees paid by other truck outfits to UPS or access if this does come about. Oh yeah, I know there are huge hurdles involved in this whole idea and the total $$$ alone may be way more than one company itself can handle but I did find the various ideas thought provoking.

    I will say this, as America entered the 20th century the mainstay of transport was the horse and buggie with the train making the longhauls and the automobile just breaking ground. As we enter the 21st century, Trains are still apart of the mix and the auto ie Truck has replaced the horse and aircraft are starting to be used more and more in the mix. As we break further into the 21st century I look for air transport to become more mainstream in not only people's personal everyday life but also in the moving of goods natinwide, regional and even locally to some extent. Aircraft more than any other element maybe the longterm solution so I look for UPS to maintain a heavy investment focus in this area. JMO.
  10. lr1937

    lr1937 Guest

    I agree with workmac in that I think the railroads coupled with our transportation and logistics expertise could provide a cheaper way to move packages by putting more trailers on trains. I think the rr have not been able to meet service requirements in the past but with us involved it could work.
  11. feederdryver

    feederdryver Guest

    I think your opinion stinks!

    We are trying to get loads "OFF" the rail NOT ON !!! DUH !
    Let's get some of our laid -off drivers back on the road. The Rail damages most of our trailers anyways with their big pickers . Ever notice the deep half circles that are gouged into the sides of our trailers?? That's from the RR's trailer picker's arm swinging down too close to the sides.

    This whole website tends to lean more towards management's viewpoints.

    BTW, Yesterday I took a Next Day Air package away from FedEx. While I was loading up my trailer, (as FedEX was getting his stuff) the shipper came out and asked the FedEx guy if he could wait around for another 10 minutes while he prepared another Next day package for him. FedEx said he didn't have time and that the shipper needed to call it in for him to come back. So I told the shipper "why not ship it through us?" He said, "well the UPS computers are already down for the night and FedEx had pre-printed labels". I said,.."um do we" He said, "really???" So I gave him an ASD to fill out and he shipped it through us. (No need for an "atta-boy" here, I know I make good money so it's just part of my job).
    I wonder how many other shippers out there don't know this. We could be losing lots of business to FredEX, because of this misconstrued knowledge that UPS stops shipping when the "UPS computer person" at the customer's site goes home for the day.

    ANNNNND....Just a reminder for all my fellow TDP UPS drivers around the country..

    I do feel proud that I was able to put a dent into FredEx's revenue, even if it was a very small one. Imagine what we could do to Fred if all of us did this.

    GO UPS ! GO Teamsters !
  12. tieguy

    tieguy Guest

    Management does not have to manage the movement of the train load. You wish to add more load movements in the hands of feeder drivers so they can stick it up our buts. Most of the feeder drivers on all my longest runs stick it up my but every day. When we ride with them they consistently arrive an hour to an hour and a half earlier than when they ride alone. Funny how we always hear that everything just happened to go so well that day when the sup rode with the driver. With the train we put the load on at point A and pull it off at point B. The cost to the business is the same each day. Remind your buddies in feeders that the shananigans they pull on the road provide the company the incentive to put more loads on the train.
  13. charlie

    charlie Guest


    How about a simple thanks.........

  14. longups

    longups Guest

    feederdryver Your attitude on taking a package from Fred is great!!
    We all need to look at why we have jobs (Not me by the way, I'm retired) and what we need to do to keep them. Remember every 40+- packages we take from FedEx Ground gets another UPS/teamster job.
    By the way I do think the RR idea may have some merit, BUT -- a lot of companies tried to work the rails and did not succeed. I know we are different but because we could suceed with the airplanes doesn't mean we can pull the rabbit out on every business.
    GO UPS
  15. lr1937

    lr1937 Guest

    I think your opinion stinks!
    Whose opoinion are you talking about?
  16. peacock71

    peacock71 Guest

    Although I can only speculate on what type of deal UPS may do next, I think the MBE acquisition and our resulting retail strategy may turn out to be one of the best thinks we've ever done.

    Go UPS! (lets keep this thread on track, no whining here!)
  17. wkmac

    wkmac Guest

    Hey Feederdryver, Calm down. The chance of UPS buying a railroad is about near impossible because it would cost Billions $$$$ that UPS doesn't have and the long term return on investment IMO is not worth the debt. The truck corridor idea is floating around Washington and "if" these do happen it could benefit the drivers for sure. I've always heard that if the US allowed nationwide triples that UPS would pull everything off the railroad because Feeder runs would be more cost effective. This would also place huge volumes of truck traffic on the interstates and thus one reason Congress has done nothing. Truck only corridors may change this but at best it's many years away. You guys aren't going anywhere soon but part of my point was the technology advances 50 or more years out will change things a bit. I can see where my job will drastically change over the next 10, 20 years out as it has the last 10 so I'm trying to look ahead rather than sitting in a strinking comfort zone.

    We're talking "what if" scenarios here that will never happen to begin with so don't get worked up. Besides, if it does you might would get a shot at driving a train rather than a Feeder. You'd have to change your alias from Feederdryver to WOO-WOOdryver though!

    Sorry P71, I wasn't whining but was trying to place this "TRAIN" of thought back on "TRACK"!
  18. upsdawg

    upsdawg Guest

    Railroad??? Did anyone evder hear of a company called Railway Express Agency??? I remember when they crashed and burned---it was not pretty!!

    The idea of UPS Triples is a better alternative--the railroad is not a good option--plus the expense would be "HUGE"!!!!

    There are so many opportunities moving money around---UPS Capital is definitely the cash cow of UPS's future---we can borrow money at prime and loan it out at.........well anything above prime is a profit!!!
  19. peacock71

    peacock71 Guest

    Now were thinkin'.......How about an LTL precision service...door to door, anything, anytime, premium service, ground. Something to complement Sonic...

    Go UPS!
  20. peacock71

    peacock71 Guest

    Not much news on the UPS expansion front lately. We used to blame that on 'blackout periods.' With the contract done, earnings done....has UPS been 'laying low' on acquisition possibilities?

    Go UPS!

    By the way...looks like the UPS Board on MF is dead...I'm maybe the last refugee...