Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
Word is we lost Grainger account.
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="worldwide" data-source="post: 4897256" data-attributes="member: 2193"><p>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 - <a href="https://investors.ups.com/news-events/ir-calendar/detail/10055/2021-investor-analyst-day" target="_blank">2021 Investor & Analyst Day</a></p><p></p><p>FedEx has also said pretty much the same thing so these very large customers are going to hit a wall with them as well.</p><p></p><p>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.</p><p></p><p>"Not all packages are attractive to us," Tome said.</p><p></p><p>"UPS intends to grow in the parts of the market that value our network, like B2B, healthcare, and SMBs."</p></blockquote><p></p>
[QUOTE="worldwide, post: 4897256, member: 2193"] 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 - [URL="https://investors.ups.com/news-events/ir-calendar/detail/10055/2021-investor-analyst-day"]2021 Investor & Analyst Day[/URL] 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." [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Discussions
Word is we lost Grainger account.
Top