Any concern about UPS Logistics affecting Teamster jobs?

[shifter]

Over the past couple of years we have seen a year round use of outside companys being used for bringing in trailers of QVC, Dell computer, and others into our hub. Also two Logistics offices and warehouses have opened in our area. There was a rumor that a package car driver was about to pick up 2 pallets of boxes with our lables on them but was told they were for Mid Valley Delivery. One of our Feeder drivers also has a picture of a Fed Ex ground sleeper team bringing in a loaded 45 foot "Z" UPS trailer and leaving with another in the Seattle hub.

 

[peacock71]

Don't companies use 'outside' carriers to drop ship at UPS all the time? The question here is if UPS Logistics is choosing that carrier, or is it the traffic manager of the customer? Logistics is a lot more than just picking them up...

Go UPS!
P71

 

[upsdawg]

Just like Sonic Air uses other airlines--UPS Logistics utilizes other LTL Companies.

UPS Logistics could be the 3rd party vendor who is making arrangements to handle all of a company's logistic needs and will utilize UPS as much as possible, but can't insist that a company use UPS 100%. A company might have a corporate discount with an LTL Company and it is less expensive to use them instead of UPS---or the comnapy might mandate that UPS use another carrier.

So if people are thinking that UPS is out to get rid of our feeder network, they are absolutely wrong. If UPS is utilized that means that UPS gets 100% of the revenues-----if UPS Logistics uses another company,that would be money out of our pocket----beleive me--UPS is used as much as possible in these situations.

UPS Supply Chain Solutions (previously Unistar and Fritz) uses other airlines to move freight and in some cases uses other brokers to clear Int'l freight---does this mean that we are trying to displace our UPS pilots---or our Louisville Brokerage?????

 

[shifter]

Of course we really do not know, but we are under the impression that instead of moving the volume from say Dell Computer in Texas to a UPS hub in Texas, UPS Logistics is hiring contract carriers to take regionalized loads from Dell to UPS hubs across the country.What was up with using a FedEx groun sleeper team to move our volume in Seattle this peak?

 

[rushfan]

So that explains why I tried to track a package from Dell's facility in Texas.
There was no tracking information until it was scanned at Salt Lake City. I really wanted to see it's journey, from Texas. Who knows who is carrying our volume till it hits a hub.

 

[johnny_b]

I know it is done a lot around here. I have heard a couple of feeder drivers were displaced. That was second hand.

The biggest problem I have is the headache that our shippers have to go through. They basically turn their facility into a hub? That has to bite.

It really hurts our sort sometimes. One of their regional trucks gets screwed up or something so they go ahead and send it to us. It can destroy a belt.

In the Sort Aisle we are much more sensitive to heavy flow and stopped belts than before. I love watching the unload supervisors face as I tell them they ABSOLUTELY CANNOT run that door. Please note, I like most of my supervisors and think they are great people for the most part. Our unload sups are some of the most uncooperative single-minded (numbers) people I have ever met.

 

[wkmac]

I see UPS Logistics as a Good News/Bad News kind of thing. The bad news is that there is the potential for some job displacement ie feeder as independent contract drivers are used to make long haul pulls from one region of the country to another. Also Logistics is not dedicated to using UPS only as a means of moving product. My understanding is Logistics uses the best means that fits the customer's needs and yes this could mean using FedEx or even FedEx ground. I've heard this zone skipping can be a real cost saver for the customer and this can be very important. Don't lose sight that we are here for the customer and not for ourselves and I know we all know this.

The good however is Logistics can add volume to our system that we might otherwise see elsewhere. From the Teamster standpoint UPS agreed (much to my surprise) to allow the union to organize some aspects of Logistics but longterm I really believe we Teamster members are going to have to think outside the standard box in relationship to how our industry needs to operate going forward.

I don't for one minute believe it will be a perfect world but I do beleive longterm if we all are willing to bend a little (both sides) there is the possibility that some aspects of Logistics instead of being a duplicate entity which costs UPS extra money could be run via our normal system. For example a UPS doubles sleeper teams doing the zone skipping with one trailer of UPS system packages and one trailer of Logistics volume is one thought that comes to mind. This piggybacking might give UPS a decided pricing advantage and this too could create more jobs and opportunity. From this point of view Logistics would be a good thing so it's just something to think about going forward. JMO.

Happy New Year's to all!

 

[proups]

I thought we bought Fritz, Sonic Air, etc...to compliment our current levels of service. With some of the acquisitions we have made, we can walk into any business and tell them that we can ship anything they make - from the smallest part to the largest machine - anywhere in the world. This is what will keep UPS moving forward in the future.

So what if our subsidiaries utilize another carrier or contractor to move goods? We can't dictate what our customers want - and why would we if the packages will end up in our system and/or the money in our coffers?

I think the Feeder/Package layoffs are primarily due to the customers who signed one-year deals with other carriers during UPS/IBT negotiations, and are staying with them due to pricing. We need to win those customers back to get those runs/routes back in the lineup.

 

[shifter]

Rushfan, it usually is Werner trucking bringing in the Dell computer loads to the Portland hub. We see QVC volume comming in with CFI trucking. Other trucking companys are used as well. What bothers me is that after moving all this volume all these years, the hourly is not given the opportunity to do the work at even a reduced wage or milage rate.

 

[cynicus]

I wish you get that picture and post it .....It would make wonderful water-cooler conversation!!!!!

 

[cynicus]

last post for 'shifter's' dec. 29,2002 post

 

[tieguy]

Dell can and does make the decision on how to move the work. Obviously if UPS were making the call we would move it through our system and make a heck of a lot more money off the deal.

 

[shifter]

Thanks for the info Tieguy. Is it possible that UPS Logistics is organizing Dell to use other carriers, or is Dell doing that on their own?

 

[tieguy]

I think Dell makes the decisions. It appears Dell and gateway both use the same approach which is similar to the drop ship concept. They build direct loads to specific areas of the country. I know in our case a Gateway builds direct loads, sends them by train to the richmond area at which point we then absorb those loads into our system. I think Dell makes the calls and we probably do anything we can to help them. Dell is by far our biggest customer. The effect of not helping them would be a lot more union jobs lost than the occasional independents you see rolling into Seattle.

 

[shifter]

Thanks Tieguy, that is more information than we are getting from our feeder management. Are you from corporate?

 

[tieguy]

No feeder manager. We've been dealing with the Gateway loads for quite some time over here. I used to talk to the Shipping manager for gateway quite a bit during the 97 strike event as he tried to gauge areas of the east coast that were still buried. The big shippers like the dells and gateways understand our business very well. They know how to work the logistics business to their full advantage.