UPS Losses $150 Million/Year
05-16-2007 | 07:35 AM
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From: UPS/747-400
UPS Losses $150 Million/Year
UPS LOSES DELL BUSINESS
And, as UPS’ customer satisfaction decreases, the Atlanta Journal Constitution reports that UPS has lost dealings with one of its biggest customers. Dell has stopped relying on UPS to handle its box deliveries in the U.S., instead, choosing DHL and FedEx. UPS spokesman Norman Black told the paper that Dell and UPS "were simply unable to reach an agreement for pricing for renewal of this particular contract." UPS remains Dell's primary package deliverer outside the U.S. Bear Stearns analyst Ed Wolfe estimates that the lost business is valued at about $150 million a year.
Here is a perfect example why NOBODY is safe in this industry. As our labor cost continue to rise, we may see more of this in the future.....
And, as UPS’ customer satisfaction decreases, the Atlanta Journal Constitution reports that UPS has lost dealings with one of its biggest customers. Dell has stopped relying on UPS to handle its box deliveries in the U.S., instead, choosing DHL and FedEx. UPS spokesman Norman Black told the paper that Dell and UPS "were simply unable to reach an agreement for pricing for renewal of this particular contract." UPS remains Dell's primary package deliverer outside the U.S. Bear Stearns analyst Ed Wolfe estimates that the lost business is valued at about $150 million a year.
Here is a perfect example why NOBODY is safe in this industry. As our labor cost continue to rise, we may see more of this in the future.....
05-16-2007 | 07:49 AM
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Yes, I'm sure it's all directly related to labor costs. It has nothing to do with managerial competency, strategic planning, industrial foresight, corporate culture, proper BoD fiduciary oversight, product quality and customer satisfaction. I don't know why so many geniuses spend time at Wharton and Harvard learning such things when really all they need is cheap labor. [sarcasm light- illuminated]
05-16-2007 | 07:51 AM
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Yes, I'm sure it's all directly related to labor costs. It has nothing to do with managerial competency, strategic planning, industrial foresight, corporate culture, proper BoD fiduciary oversight, product quality and customer satisfaction. I don't know why so many geniuses spend time at Wharton and Harvard learning such things when really all they need is cheap labor. [sarcasm light- illuminated]
05-16-2007 | 08:04 AM
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UPS spokesman Norman Black told the paper that Dell and UPS "were simply unable to reach an agreement for pricing for renewal of this particular contract."
My understanding is for the volume Dell was shipping, the yields did not provide for a significant profit margin. UPS made the decision to renegotiate the contract for a higher profit margin....Dell didn't go for it. UPS feels there is more higher yield shipments available in the market for a greater profit margin.
My understanding is for the volume Dell was shipping, the yields did not provide for a significant profit margin. UPS made the decision to renegotiate the contract for a higher profit margin....Dell didn't go for it. UPS feels there is more higher yield shipments available in the market for a greater profit margin.
05-16-2007 | 08:13 AM
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UPS spokesman Norman Black told the paper that Dell and UPS "were simply unable to reach an agreement for pricing for renewal of this particular contract."
My understanding is for the volume Dell was shipping, the yields did not provide for a significant profit margin. UPS made the decision to renegotiate the contract for a higher profit margin....Dell didn't go for it. UPS feels there is more higher yield shipments available in the market for a greater profit margin.
My understanding is for the volume Dell was shipping, the yields did not provide for a significant profit margin. UPS made the decision to renegotiate the contract for a higher profit margin....Dell didn't go for it. UPS feels there is more higher yield shipments available in the market for a greater profit margin.
05-16-2007 | 09:09 AM
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From: 757 Capt
dell
Guys...
The days of seeing dell computers filling the cans in the next day sort have been over for a while. Computers now are a cheaper commodity and rarely, if ever, do we see the dell boxes in the cans. They have been shipped primarily by ground for at least the past couple of years.
Profit margins being what they are, ups made a business decision that dell didn't like. Say what you want about ups policy and the way they treat their employees, but this looks like a sound business decision.
JMO
Pilot7576
The days of seeing dell computers filling the cans in the next day sort have been over for a while. Computers now are a cheaper commodity and rarely, if ever, do we see the dell boxes in the cans. They have been shipped primarily by ground for at least the past couple of years.
Profit margins being what they are, ups made a business decision that dell didn't like. Say what you want about ups policy and the way they treat their employees, but this looks like a sound business decision.
JMO
Pilot7576
05-16-2007 | 10:27 AM
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We've been hosting many customer tours lately, they get to fly the 727 sim usually and tour the Worldport sort. I don't think we'll have a problem courting new customers, looking at the number of groups visiting lately.
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