Originally published at: UPS needs a win-win-win strategy for B2C delivery - FreightWaves
By Satish Jindel UPS built a formidable B2B parcel delivery model since its founding in 1907. It was impossible for many competitors to survive UPS’s great reputation for service and lower costs, resulting in a competitive moat for the company. The highly engineered operation was so productive that the carrier was able to pay unionized…
Satish, you are famous for your $100 bets. How about this? I bet you $100 that the Teamsters will never agree. You want to cover the bet?
Why? From their point of view there will be jobs lost or future unrealized Teamster jobs. Thinking about your recent article on FedEx going gig that also had some challenges, Teamsters is not one of them. The current Teamster leadership is no joke. These are not your words, but it is hard to say with a straight face that the Teamsters didn’t walk all over UPS in the current contract.
There is one other consideration. Since UPS Stores are franchisees, they will want to get paid for handling said packages. We did a variation of this at Federal Express where we shuttled packages from the airport to Business Service Centers. Couriers were dispatched from there, but those centers were company-owned and it was a fixed cost. UPS Stores are not.
I am not sure what the UPS Store fee would add, but the margins are so low on B2C that any added expense is going to be significant.
I have a special place on my wall to display your check when you lose the bet - LOL.
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Coyote logistics freight broker is UPS , Foreign people steal UPS loads through them.
Since this article posted, we have had discussions with rank and file UPS Teamsters Drivers that have expressed concerns that this model will eliminate Teamster jobs. For clarity this model is proposed to preserve Teamster jobs. By embracing the model, Teamsters will reverse the B2C volume erosion and driver buyouts (preserving active Teamster jobs and member counts).
