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UPS Lost Famous Footwear
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<blockquote data-quote="Southwestern" data-source="post: 933082" data-attributes="member: 33209"><p>...and we picked-up several Amazon distribution centers. Many shippers -- large & small -- continually leverage UPS & FedEx against each other in order to extract the lowest rates possible. Ultimately, FedEx Ground's volume (actual volume, not estimated ground revenue) is still a fraction of UPS's despite the presence of several major accounts. In (a portion of) my state, there's two FedEx G buildings that cover an area housing about 18 UPS facilities. On FedEx G's busiest day last month, the manager of the larger building stated (on local news) their record volume -- which was only a third of ours, and we're not even UPS's largest facility!</p><p></p><p>In the near future, UPS has the tools to effectively compete with FedEx: stronger productivity, a large rail network, double-stacked 53s, integration of SurePost & air services, etc. Meanwhile, as FedEx G rapidly expands, some of its regional transit times (long a significant advantage) have slowed. Long-term UPS's higher labor-costs and aging facilities (FedEx has much more automation... heck, RPS invented Next Gen Small Sort -- absent from many large UPS buildings, including hubs) may hurt us. Perhaps most disturbingly, in many polls, Generation Y has shown a strong preference toward FedEx & FedEx G -- probably a derivative of the chic ads they grew up with and the mental images of delivering QVC packages to grandma.</p></blockquote><p></p>
[QUOTE="Southwestern, post: 933082, member: 33209"] ...and we picked-up several Amazon distribution centers. Many shippers -- large & small -- continually leverage UPS & FedEx against each other in order to extract the lowest rates possible. Ultimately, FedEx Ground's volume (actual volume, not estimated ground revenue) is still a fraction of UPS's despite the presence of several major accounts. In (a portion of) my state, there's two FedEx G buildings that cover an area housing about 18 UPS facilities. On FedEx G's busiest day last month, the manager of the larger building stated (on local news) their record volume -- which was only a third of ours, and we're not even UPS's largest facility! In the near future, UPS has the tools to effectively compete with FedEx: stronger productivity, a large rail network, double-stacked 53s, integration of SurePost & air services, etc. Meanwhile, as FedEx G rapidly expands, some of its regional transit times (long a significant advantage) have slowed. Long-term UPS's higher labor-costs and aging facilities (FedEx has much more automation... heck, RPS invented Next Gen Small Sort -- absent from many large UPS buildings, including hubs) may hurt us. Perhaps most disturbingly, in many polls, Generation Y has shown a strong preference toward FedEx & FedEx G -- probably a derivative of the chic ads they grew up with and the mental images of delivering QVC packages to grandma. [/QUOTE]
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