Word is we lost Grainger account.

[rod]

 

[evilleace]

Was picking up at Grainger today and they asked me if I knew they were switching to Fed-ex July 1. So I guess it's true after all.

 

[ManInBrown]

8-10 dedicated Grainger jobs eliminated here. They gone.

 

[myback]

Fedex will screw it up

 

[Yeet]

Was picking up at Grainger today and they asked me if I knew they were switching to Fed-ex July 1. So I guess it's true after all.

8-10 dedicated Grainger jobs eliminated here. They gone.

Damn. I just asked a few weeks ago if we still had the Grainger TDP run and was assured we did. I guess we are about to lose it. Welp, guess I’ll be expecting a new bump and roll soon.

 

[Overpaid Union Thug]

Was picking up at Grainger today and they asked me if I knew they were switching to Fed-ex July 1. So I guess it's true after all.

8-10 dedicated Grainger jobs eliminated here. They gone.

Add them to the list. We have lost plenty over the past year. Shippers that lost income during the lockdowns are trying to recover. And why pay us more when our service sucks now? Hell I wouldn’t be surprised if Grainger reached out to our account rep to see if we’d come back with a counter offer. We likely never responded. Our sales reps have always sucked.

 

[Cowboy Mac]

Add them to the list. We have lost plenty over the past year. Shippers that lost income during the lockdowns are trying to recover. And why pay us more when our service sucks now? Hell I wouldn’t be surprised if Grainger reached out to our account rep to see if we’d come back with a counter offer. We likely never responded. Our sales reps have always sucked.

Grainger has always packed their stuff improperly. Anytime I deliver Grainger packages, they’re all in these flimsy paper thin boxes with no packing material and one strip of tape. If their stuff gets broke it’s their own damn fault for being cheap.

 

[ManInBrown]

Grainger has always packed their stuff improperly. Anytime I deliver Grainger packages, they’re all in these flimsy paper thin boxes with no packing material and one strip of tape. If their stuff gets broke it’s their own damn fault for being cheap.

Someone else mentioned this earlier in thread. Probably was a factor.

 

[worldwide]

Add them to the list. We have lost plenty over the past year. Shippers that lost income during the lockdowns are trying to recover. And why pay us more when our service sucks now? Hell I wouldn’t be surprised if Grainger reached out to our account rep to see if we’d come back with a counter offer. We likely never responded. Our sales reps have always sucked.

Maybe, just maybe, Grainger is one of those large customers that is marginally profitable and there's no more room to offer more discounts and remain profitable. Very large companies like Grainger get the lowest rates there are and when they ask for even lower rates, sometimes the margins are not there to support it. Up until Carol Tome took over, UPS would typically keep cutting prices and make less and less profit, for doing the same amount of work. Clearly, things have changed and these marginally profitable accounts are not as attractive as they once were. It's all outlined on the investor relations page what the future focus for UPS is - 2021 Investor & Analyst Day

FedEx has also said pretty much the same thing so these very large customers are going to hit a wall with them as well.

There have been several posts over the years on Brown Cafe from people saying "UPS needs to get rid of these customers that we make very little money on or lose money on." Well, that's finally happening.

"Not all packages are attractive to us," Tome said.

"UPS intends to grow in the parts of the market that value our network, like B2B, healthcare, and SMBs."

 

[IVE GOTTA PACKAGE 4U]

Maybe, just maybe, Grainger is one of those large customers that is marginally profitable and there's no more room to offer more discounts and remain profitable. Very large companies like Grainger get the lowest rates there are and when they ask for even lower rates, sometimes the margins are not there to support it. Up until Carol Tome took over, UPS would typically keep cutting prices and make less and less profit, for doing the same amount of work. Clearly, things have changed and these marginally profitable accounts are not as attractive as they once were. It's all outlined on the investor relations page what the future focus for UPS is - 2021 Investor & Analyst Day

FedEx has also said pretty much the same thing so these very large customers are going to hit a wall with them as well.

There have been several posts over the years on Brown Cafe from people saying "UPS needs to get rid of these customers that we make very little money on or lose money on." Well, that's finally happening.

"Not all packages are attractive to us," Tome said.

"UPS intends to grow in the parts of the market that value our network, like B2B, healthcare, and SMBs."

At least the heavy packages from Granger was going to business stops. Not like that heavy crap we get from Amazon You're going to drag up 20 steps to somebody's somebody's house.

 

[Orion’s making me 💰]

We also lost McMaster carr last December. They came back with in two months after fedex was delivering it days late. I was told they are currently 2/3 million packages behind in their Chicago hub and the building in near ours holds 3 53 footers a day they can’t process.

 

[worldwide]

We also lost McMaster carr last December. They came back with in two months after fedex was delivering it days late. I was told they are currently 2/3 million packages behind in their Chicago hub and the building in near ours holds 3 53 footers a day they can’t process.

Could be true. WSJ and ShipMatrix reporting FedEx on time performance is behind UPS.

From March through mid-April, about 87% of FedEx Ground shipments arrived on time, compared with 95% for the similar service at UPS according to ShipMatrix Inc., a software provider that crunches parcel shipping data. The delays are frustrating customers, some of whom say they have turned to other shippers to fulfill orders.

FedEx Still Struggling With Late Deliveries

The delivery giant’s performance lags behind UPS, data show, as a pandemic-fueled e-commerce surge overwhelms its network.

www.wsj.com

 

[Sixth Punch Sense]

I'm seeing a lot more Petco this week. Hope this isn't the trade off

 

[DOK]

Maybe, just maybe, Grainger is one of those large customers that is marginally profitable and there's no more room to offer more discounts and remain profitable. Very large companies like Grainger get the lowest rates there are and when they ask for even lower rates, sometimes the margins are not there to support it. Up until Carol Tome took over, UPS would typically keep cutting prices and make less and less profit, for doing the same amount of work. Clearly, things have changed and these marginally profitable accounts are not as attractive as they once were. It's all outlined on the investor relations page what the future focus for UPS is - 2021 Investor & Analyst Day

FedEx has also said pretty much the same thing so these very large customers are going to hit a wall with them as well.

There have been several posts over the years on Brown Cafe from people saying "UPS needs to get rid of these customers that we make very little money on or lose money on." Well, that's finally happening.

"Not all packages are attractive to us," Tome said.

"UPS intends to grow in the parts of the market that value our network, like B2B, healthcare, and SMBs."

The problem I have with this line of thinking is that in the past year we increased our work force by 40-50% (in our building anyway), purchased new vehicles, etc. All this comes with a cost, we need the packages to keep everyone working, for the healthcare and pension obligations etc.

 

[Overpaid Union Thug]

Maybe, just maybe, Grainger is one of those large customers that is marginally profitable and there's no more room to offer more discounts and remain profitable. Very large companies like Grainger get the lowest rates there are and when they ask for even lower rates, sometimes the margins are not there to support it. Up until Carol Tome took over, UPS would typically keep cutting prices and make less and less profit, for doing the same amount of work. Clearly, things have changed and these marginally profitable accounts are not as attractive as they once were. It's all outlined on the investor relations page what the future focus for UPS is - 2021 Investor & Analyst Day

FedEx has also said pretty much the same thing so these very large customers are going to hit a wall with them as well.

There have been several posts over the years on Brown Cafe from people saying "UPS needs to get rid of these customers that we make very little money on or lose money on." Well, that's finally happening.

"Not all packages are attractive to us," Tome said.

"UPS intends to grow in the parts of the market that value our network, like B2B, healthcare, and SMBs."

But we continue to desperately hang onto Amazon? LMFAO.

 

[worldwide]

But we continue to desperately hang onto Amazon? LMFAO.

I don't know what the overall profitability/margins are on Amazon, Grainger or any other account and unless you are highly placed in corporate revenue management, neither do you. The point of the post is that the customers for both UPS and FedEx that are used to playing the game of getting price concessions every year and that are marginally profitable will not be seeing the carriers give out those discounts. The market conditions are favorable for both UPS and FedEx to obtain the rates they want to obtain and choose which market segments they want to grow. At some point, market conditions will change and customers will have the pricing power - all about supply and demand. It only makes sense to keep packages when they produce a profit. If UPS can make more money from healthcare, international and SMB customers and those segments are growing faster than the large B2B customers like Grainger, GE, etc., why wouldn't they pursue that business?

 

[IVE GOTTA PACKAGE 4U]

I don't know what the overall profitability/margins are on Amazon, Grainger or any other account and unless you are highly placed in corporate revenue management, neither do you. The point of the post is that the customers for both UPS and FedEx that are used to playing the game of getting price concessions every year and that are marginally profitable will not be seeing the carriers give out those discounts. The market conditions are favorable for both UPS and FedEx to obtain the rates they want to obtain and choose which market segments they want to grow. At some point, market conditions will change and customers will have the pricing power - all about supply and demand. It only makes sense to keep packages when they produce a profit. If UPS can make more money from healthcare, international and SMB customers and those segments are growing faster than the large B2B customers like Grainger, GE, etc., why wouldn't they pursue that business?

Maybe if we get there the air on time that would be a good plan....

 

[I have been lurking]

I don't know what the overall profitability/margins are on Amazon, Grainger or any other account and unless you are highly placed in corporate revenue management, neither do you. The point of the post is that the customers for both UPS and FedEx that are used to playing the game of getting price concessions every year and that are marginally profitable will not be seeing the carriers give out those discounts. The market conditions are favorable for both UPS and FedEx to obtain the rates they want to obtain and choose which market segments they want to grow. At some point, market conditions will change and customers will have the pricing power - all about supply and demand. It only makes sense to keep packages when they produce a profit. If UPS can make more money from healthcare, international and SMB customers and those segments are growing faster than the large B2B customers like Grainger, GE, etc., why wouldn't they pursue that business?

I heard it from a now ex dispatcher that Amazon profit was a joke

 

[Est.1998]

I don't know what the overall profitability/margins are on Amazon, Grainger or any other account and unless you are highly placed in corporate revenue management, neither do you. The point of the post is that the customers for both UPS and FedEx that are used to playing the game of getting price concessions every year and that are marginally profitable will not be seeing the carriers give out those discounts. The market conditions are favorable for both UPS and FedEx to obtain the rates they want to obtain and choose which market segments they want to grow. At some point, market conditions will change and customers will have the pricing power - all about supply and demand. It only makes sense to keep packages when they produce a profit. If UPS can make more money from healthcare, international and SMB customers and those segments are growing faster than the large B2B customers like Grainger, GE, etc., why wouldn't they pursue that business?

 

[Overpaid Union Thug]

I don't know what the overall profitability/margins are on Amazon, Grainger or any other account and unless you are highly placed in corporate revenue management, neither do you. The point of the post is that the customers for both UPS and FedEx that are used to playing the game of getting price concessions every year and that are marginally profitable will not be seeing the carriers give out those discounts. The market conditions are favorable for both UPS and FedEx to obtain the rates they want to obtain and choose which market segments they want to grow. At some point, market conditions will change and customers will have the pricing power - all about supply and demand. It only makes sense to keep packages when they produce a profit. If UPS can make more money from healthcare, international and SMB customers and those segments are growing faster than the large B2B customers like Grainger, GE, etc., why wouldn't they pursue that business?

Large volume shippers that have lower margins per package still result in higher overall profit. Especially when they make routes more dense. Holding onto them and pursuing healthcare, international, etc, (they should have pursued those already) is the smarter play.

None of this matters when our sales reps are so freakin incompetent that drivers won’t even bother submitting what should be slam dunk sales leads. It’s simply not worth the embarrassment.