1 million packages less

Sporhwhore

Well-Known Member
What costs less, having drivers do some extra miles, or operating an extra hub 24/7? I am thinking driving more.
I hope for your sake your building doesn’t shut down and your commute time goes from 5 minutes ( which happened on purpose) to an hour and 5 minutes 10 times per week 46 weeks a year… guy sounds like management
 

Wally

BrownCafe Innovator & King of Puns
I hope for your sake your building doesn’t shut down and your commute time goes from 5 minutes ( which happened on purpose) to an hour and 5 minutes 10 times per week 46 weeks a year… guy sounds like management
Hope not.

Company goes south and jobs won't be there at all.
 

Coldworld

Well-Known Member
What costs less, having drivers do some extra miles, or operating an extra hub 24/7? I am thinking driving more.
It's not just fuel...it's hours too. They tried moving some routes from one building to another and even though it was less miles the drivers were sitting in more traffic because of where they were going and coming back from. After about a month they moved the routes back to the original hub. This type of business will always be employee heavy.
 

Coldworld

Well-Known Member
Closing buildings isn't going to do it....if it isn't broke don't fix it, it's been this way for years and worked and they made plenty of money.
Interesting how they really never cared about new buildings and such for so many years even though it would have been cheaper to make new ones years ago and then them saying they have no money for upgrades. Now all of a sudden they have the money to buy all this land and build these larger buildings...funny how things can change so fast.
 

Coldworld

Well-Known Member
Fixed it for you. ;)

@Coldworld
1730367872569.jpeg
 

Well-Known Member

Back From Break
The volume they have been cutting includes customers with low-margin or even unprofitable business.

They are not cutting volume, they are cutting volume capacity. Big difference.

They are just trying to match capacity better with current volume, reducing overall costs.

Why do you need capacity to process, say 11 million parcels per day, when you only process 10 million. That extra capacity adds cost.

Consolidate a few smaller building into one automated building and the cost savings of not operating those smaller buildings far out way the extra cost of running that volume through the automated building. It sucks, but it is what it is.
 

Well-Known Member

Back From Break
Closing buildings isn't going to do it....if it isn't broke don't fix it, it's been this way for years and worked and they made plenty of money.

I agree. UPS used to make roughly $4 billion a year in profit. Now, they want to make $8 billion per year just to appease the stockholders. They are not happy with the historical $4 billion per year.
 
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