USPS takes Dell Account

Discussion in 'UPS Discussions' started by susiedriver, Sep 28, 2005.

  1. susiedriver

    susiedriver Guest

    From the AJC(reg req'd):

    In a move that could sting UPS, Dell, the nation's biggest computer maker, plans to ship many computers to U.S. post offices for customer pickup, rather than directly to buyers' homes. That will shift some shipments away from Sandy Springs-based UPS, currently Dell's primary deliverer for computers.

    The computer maker is unsure how many computer shipments will ultimately be affected, Dell spokesman Andy North said Tuesday.

    Jim Cochrane, manager of package services for the U.S. Postal Service, said he thinks "significantly less than half" of the shipments UPS now makes for Dell will be affected. He said capturing Dell's business probably will add annual revenue in "double digit" millions of dollars.
  2. 3zm7f

    3zm7f Guest

    Good Customer Service does it again,they should start FIRING the customer service reps,because they are not doing anything, not like the old days,instead seeing these people in person,now they call them up on the phone.
  3. ok2bclever

    ok2bclever Guest

    3z, while there are areas where customer service, or account execs as they are referred to now are less than stellar I do not think this decision has anything to do with them.

    We have a special branch dedicated to kowtowing directly to Dell 24/7.

    It is much more likely strictly a financial costs move.

    I cannot envision many post offices being able to store the bulk that Dell systems represent.

    This should be interesting.
  4. upsdawg

    upsdawg Guest you don't think that our Business Development person did their job on this one---just made a phone call-------------you can't be serious. We have people on site at Dell, and it is a National Account---so we have National Account Manager and their support people involved.

    Dell made a decison to divert some volume to the post office and save some money and try to appease their customers who are not home when UPS makes the first delivery attempt by sending them to the local US Post Office location so their customer can pick their computer up at their leisure-------was this the fault of the UPS Customer Service person---the National Account Manager---Corporate Pricing--Mike Eskew?? We are going to have realize that our customers---yes, even DEll, who has been a loyal UPS customer will divert some volume due to rates!

    Here are my thoughts when I saw what Dell was attempting to do---make it easier for their customer to go the Post Office----I have waited in the line at the P.O---it is a good reminder for people to never use the P.O. again!!!!So let's give this one some time and see what Dell's customers feel about going to the P.O to pick up their computers!!
  5. oms

    oms Guest

    I think Dell is doing this for their customers who are not at home during the day when we make delivery atempts. I know in our building, we have hundreds of Dell pkgs in our will call room, that are NI3, and also remember, any DELL pkg refused by the customer does NOT get sent back, we have to place it on will call while DELL contact them to figure it out.
  6. upsdawg

    upsdawg Guest

    OK2B..........I cannot envision many post offices being able to store the bulk that Dell systems represent

    Oh wise OK2B---excellent point regarding the Post Office----storing packages---finding packages---waiting in line for packages-----getting to the P.O before they close!!!

    Only thing worse that the Post Office in California is the DMV!!
  7. dannyboy

    dannyboy Guest

    To try and make service on Dell and others, I always leave my cell phone number on the delivery notice. Then they can either meet me or I can return the same day with the delivery.

    As any driver, a large three or four package delivery to a residential is not one I want to haul around for several days, esp when you have them going to several stops.

  8. susiedriver

    susiedriver Guest

    My only question is why didn't we work out a deal with 'The UPS Store' to have the shipments left there?

    The article says this move will cost us in the tens of millions of dollars of revenue.
  9. ok2bclever

    ok2bclever Guest

    We already have this additional service "hold for pick up" at our UPS customer centers in several forms and all are free.

    At my center we average four to eight systems a day held by request for pick up.

    They take up room really fast!

    You can order your system using the official Hold For Pick UP using your local UPS customer service center's address and get a call in the morning it comes in and pick it up as early as 8 am or as late as 8 pm in my area that same morning/day(try that at the Post Office).

    Or you can call and request Same Day Will Call after getting the delivery notice and get a telephone confirmation of when the driver will be back in so you can customize your pickup time up to 8pm.

    Or request a hold after the first (or second or third) attempt and have it held at the local UPS customer center the next day or up to a week later.

    Any pick up at our customer center supplies you with a cart, two wheeler or assistance if you need it or request it to get the system out to your car/truck/van, whatever.

    The Post Office cannot truly compete with any of that.

    So service is not the issue.

    There are two potential factors in Post Offices favor.

    Number one is cost if the Post Office is cheaper and at the sizes and weights involved I don't see how that can be, but must be, right?

    Number two is the customer's local Post Office is likely closer than the UPS customer center as we have far more territory covered by our centers than that covered by each individual Post Office.

    That one can be significant for many rural customers.

    susie's UPS Store suggestion could diminish that issue, but would have to be worked out with the independent franchises I imagine.
  10. moreluck

    moreluck Guest

    From the beginning,I thought that the whole idea of buying M.B.E. was to have a place to DR packages too. Thus making it more convenient for the customer....just stop at your local MBE instead of trekking to the other side of town to the UPS building.
  11. ironylife

    ironylife Guest

    just wait until the customer calls the post office and tells them that they cant come get the computer and could the post office go ahead and deliver it. or how about those hole in the wall rural post offices that would blow out their office with 3 dell systems. watch everybody, dell will be shipping all of their stuff with ups again. fedex tried but jacked everything up, the post office will do the same thing. the post office is just trying to get back at ups for all of the millions of basic packages that we are taking from them.
  12. moreluck

    moreluck Guest

    Post offices around here close at 5...people work 'til 5 also and no Saturday hours. When are the people suppose to get their computers?
  13. speeddemon

    speeddemon Guest

    I can hear the postal employees bitching already.
  14. dannyboy

    dannyboy Guest


    Here they are open at 8, close at 5 and open 9-12 on Saturdays

  15. racerx

    racerx Guest

    Moreluck and Susie, that is one synergies of having the UPS Store as part of our service offerings. Alternate Delivery, as the service has been named, is available. But I am sure that it was cost that drove Dell away. We would have to charge for that service because a UPS driver would have to deliver the computer the last mile to the UPS Store (not to mention we would have to compensate the UPS Store owner for the space that these orders take up). The USPS would not have to charge anything extra because the package never leaves the Post Office facility. It is just like UPS Hold For Pickup service at our customer centers we dont charge anything extra because this service actually saves us money by not having a driver make the last mile delivery. Also, given the bad press about our relationships with the UPS Stores owners, I bet Dell did not want to be in the middle of that.

    But I agree with the other posters on this thread I dont think either party thought this all the way through. The USPS did not take into consideration where all of these shipments would be held and they might not grasp the sheer volume of the these orders, while Dell did not consider that they are no longer shipping with a for profit company that owes its existence to good service. And lets face it, anyone who has been to the Post Office lately was not overwhelmed by the sense that anyone in that building was glad that they were there. The problems will be swift and many.

    I have been involved with a few dealing with Dell it is their way or the highway and it is never their fault. I give it 2 months before they take it away from the USPS.
  16. susiedriver

    susiedriver Guest


    Do you know if the Dell account was actually profitable for UPS? Between the extra service we were required to do (at least in my center) and the multiple delivery atempts usually required, I have a hard time believing we made much profit at all on Dell.
  17. dannyboy

    dannyboy Guest

    While not sure of the amount of profit, we do make a profit on Dell.

    We have a fairly large distribution plant here in the district and the money made off it is very substantial.
  18. racerx

    racerx Guest

    Susie, the answer to that is I dont know. But accounts of this level have a whole different set of rules. As a District Account Exec, all of my accounts had to show a certain level of profit in order for us continue offering incentives. And UPS is not bashful about saying no if they think a demand is too high. National, Global, and Strategic accounts are a whole different ball game. Most contracts that we have with accounts such as Dell cover a lot more services than just small package. The contract could include warehousing services, financial agreements such as letters of credit and blanket cargo insurance, call center staffing, intermodal transportation management, or even total supply chain management. Accounts with far reaching contracts such as this will be making us money overall, but we may lose money on a few small package shipments such those with multiple delivery attempts.

    Again, as for Dell in particular, I was not on their account management team so I do know anything specific. Hope this helps..
  19. susiedriver

    susiedriver Guest


    Are we keeping our other contracts with Dell and just losing the home delivery portion of the account? That would be a good thing, I would imagine.
  20. upsdawg

    upsdawg Guest

    Dell has been pretty smart on their distribution costs---they do a lot of Zone Skipping.They drop trailers into our Reno ,Nv hub and from there they can hit the entire west coast with a 1-2 day service and pay only the Zone 2 to 4 rate.

    I just rec'd a new Dell-ordered it on line and it was delivered to my house 3 days later-----good thing my wife was home to sign, or I would have had to drive to the Hub ( 11 miles) and pick it up!

    I am hoping that Dellis not going to use USPS for the metro deliveries, where there are generally larger Post Offices---and give UPS the rural stuff?????