Dell drops UPS, will use rivals

[satellitedriver]

I had a customer ask me today if I had his Dell. I told him I didn't have it. He said it was being shipped NXDA.When I asked him for the tracking number, he didn't know it. So, another person in the office produced a two page printout of the order. No tracking number. At the end of the second page, it said shipped thru Airborn(sp). They looked at me and said," Maybe we will get it today or tomorrow".
Service is as service does.
Reliability will rule the day, over time.

 

[8up]

I would think this not such a bad loss. Does UPS even make money from delivery Dells? They are primarily res. deliveries and most take to the 2nd attempt to get them delivered. I for one, are happy to see them go.

i don't guess you've ever seen a shipment of twenty computers being delivered to a business or school. with twenty computers you get twenty monitors and twenty printers. yeah, it's work, that's what i said i was willing to do when i signed the application. all those packages, that is volume i hate to see leave more than i hate the work i had to do to move them. not only is it a loss of volume, it adds to the total of loss of market share. don't fool yourself that big brown is too big to feel the effect from loss of volume or market share.

 

[disneyworld]

Should I go buy an HP now?

 

[Cementups]

As far I''m concerned, let them have them. Less big boxes for me to handle. I know it's a big hit in revenue for us if they were to stay with those two companies but less strain on me is always good

 

[raceanoncr]

Wouldn't buy a Dell agin anyway. Did so last yr or yr before, can't remember which.

Got their All-In-One printer. Warranty ran out, so did scanner part. Called their tech..sorry. Called local people...none! Noboby works on em here! Either gotta send it back to Dell or get nuther one.

Now it makes a good wheel chock.

 

[bbt]

dell is in trouble and is looking to get their pain in the ass packages delivered for next to nothing. i cant even fathom how many times i bent over backwards to get these signature required pkgs delivered to residential stops.
fed ex ground and dhl in my area have drivers that drive as far away as 80 miles to their route,(tell that customer where they can come pick up their computer)
ups knows when to walk away, and even though it my be 150 million dollars a year in revenue i bet the profit was relatively low , say 1 to 3 percent off of each pkg after all the manpower thats put into each delivery not in 1 ,not in 2 , hold for pick up ,please come by my house between 2 an 3 etc , i actually have wondered how we ever made any real cash off these pkgs.
i bet dell will get killed on its customer service side for its shipping practices;
dont worry brown knows when to walk away.

 

[bokitch]

funny how it takes 2 companies to do what was doing

 

[ImpactedTSG]

funny how it takes 2 companies to do what was doing

It's actually good business to not keep all of the shipping needs with one company. You can leverage better rates and also have more options with multiple companies. Plus you don't have to worry if the union decides to strike again. Honestly, if you had a business, what would you do?

 

[browniehound]

i don't guess you've ever seen a shipment of twenty computers being delivered to a business or school. with twenty computers you get twenty monitors and twenty printers. yeah, it's work, that's what i said i was willing to do when i signed the application. all those packages, that is volume i hate to see leave more than i hate the work i had to do to move them. not only is it a loss of volume, it adds to the total of loss of market share. don't fool yourself that big brown is too big to feel the effect from loss of volume or market share.

8up,
I think those deliveries are rare though. Its mostly res. deliveries that take 3 attempts to deliver and I'm sure we're losing money on that.

 

[new]

I hope we don't get the ARS or call tag returns either.

 

[upsgrunt]

dell is in trouble and is looking to get their pain in the ass packages delivered for next to nothing. i cant even fathom how many times i bent over backwards to get these signature required pkgs delivered to residential stops.
fed ex ground and dhl in my area have drivers that drive as far away as 80 miles to their route,(tell that customer where they can come pick up their computer)
ups knows when to walk away, and even though it my be 150 million dollars a year in revenue i bet the profit was relatively low , say 1 to 3 percent off of each pkg after all the manpower thats put into each delivery not in 1 ,not in 2 , hold for pick up ,please come by my house between 2 an 3 etc , i actually have wondered how we ever made any real cash off these pkgs.
i bet dell will get killed on its customer service side for its shipping practices;
dont worry brown knows when to walk away.

Great point! There comes a time when you have to make a person play their hand and that is what UPS is doing to Dell. I imagine Dell thought that UPS would give them whatever they wanted and finally UPS said "no thanks". I bet anything we have them back by December 1st. Like my dad always said to me: "You get what you pay for". Cheaper is almost never better. We can get your stuff to you much faster and at least you can track progress with our system and get a scheduled delivery date. Try that with DHL.

 

[HubSnake]

Oh Gee, you hate to work for a living. If you want it easier go deliver pizza's of flowers for a living. Stop your whining

 

[ImpactedTSG]

Oh Gee, you hate to work for a living. If you want it easier go deliver pizza's of flowers for a living. Stop your whining

HAHAHA great first post. Got to give you some positive feedback for that one.

 

[krash]

HAHAHA great first post. Got to give you some positive feedback for that one.

If Dell wants cheaper rates, they need to go with UPS basic then.
I rarely had a Dell (3 to 5pieces) that got delivered on the 1st attempt.
2nd attempt the morons would leave a signed delivery notice on there door after you checked, underlined and highlighted that they had to "sign in person!!" So Half the time it was 3rd attempt So UPS has to charge a rate that makes a profit. But I'm sure Dell will be happy with FedEx since they'll just drop it off without a sig (FedExGround)and from what I've heard rarely pay claims. How quickly they forget.

 

[scratch]

I'm making this post on a Dell desktop that has just about been totally rebuilt in two years. The video card went out a week after the warrenty, so I put an ATI Radeon 9550 to replace it. The hard drive quit after eighteen months, so i replaced that too. It seems like they are doing the same thing Gateway did. Build a good PC at first, then start cutting too many corners on quality to increase production numbers. Lets not even get started on their customer service. I will never buy another one because of their quality. As a driver, I often made a second same day attempt on them at the end of the day to try to catch their customer at home. I have never seen our competition do anything like that.

 

[moreluck]

Maybe Dell really is shopping for CHEAP!!

Maybe this is why UPS doesn't mind losing DELL.......

This quarter, Dell decided to wait a few weeks. Given how much the company has been struggling with everything from disappointing financials to federal accounting probes, that decision makes sense. Corporate executives, like stand-up comics, know that sharing the stage with a star can lead to disaster.
Still, the numbers H-P posted Wednesday suggest that Dell Chief Executive Michael Dell may have very few positive data points to discuss when he talks about his company's personal-computer business later this month. This quarter, Dell decided to wait a few weeks. Given how much the company has been struggling with everything from disappointing financials to federal accounting probes, that decision makes sense. Corporate executives, like stand-up comics, know that sharing the stage with a star can lead to disaster.
Still, the numbers H-P posted Wednesday suggest that Dell Chief Executive Michael Dell may have very few positive data points to discuss when he talks about his company's personal-computer business later this month.

 

[scratch]

I was just watching the news, and one of the stories had the New York Attorney General talking about a class action lawsuit against Dell for cheating customers on finance charges and poor customer service. There is a similar class action lawsuit in California.

My other PC, a Toshiba Satellite, also was involved in a class action lawsuit. Normally, Toshibas are great, but my particular model has had the motherboard replaced twice now. I can really pick them sometimes.

 

[LKLND3380]

Interesting article on Dell and UPS. And the green lined words are part of the article.
And positive recognition for service providers. (package, hub, feeders and air)

By Matt Kempner
The Atlanta Journal-Constitution
Published on: 05/12/07

Dell, the nation's biggest maker of personal computers, has stopped relying on UPS, the world's biggest package deliverer, to handle its box deliveries in the United States.
Instead, Dell is turning to UPS shipping rivals DHL and FedEx. The move cuts into Sandy Springs-based UPS' dealings with one of its biggest customers. But it is a boost for DHL's efforts to grow its presence in the U.S.

UPS spokesman Norman Black said Dell and UPS "were simply unable to reach an agreement for pricing for renewal of this particular contract."

None of the companies involved would disclose the dollar value of the deals. Dell shipped 20.5 million personal computers for the U.S. market last year, according to IDC, which tracks data about the technology industry. That represented just over half Dell's worldwide shipment of PCs.

But Dell's market share has been slipping, and it has been looking for ways to streamline its operations and shave costs for everything from manufacturing to logistics.

UPS had been the carrier for virtually all of Dell's U.S. package deliveries, Black said. While that ended effective April 1, UPS remains Dell's primary package deliverer outside the U.S. and will continue to handle logistics issues for the computer maker, he said.
"They are still one of our largest customers," Black said.

He declined to say where Dell had ranked among UPS' largest clients. He said the reduction in business between the companies is not a material event from a regulatory financial accounting standpoint.

Ed Wolfe, a Bear Stearns analyst who follows UPS, earlier issued a report suggesting that the lost business is valued at about $150 million a year.

Black said Dell's decision "has absolutely nothing to do with our level of service."
DHL and FedEx declined to comment on their agreements with Dell. Amy King, a spokeswoman for the computer maker, also declined to comment on contracts.
"We are always looking at ways to maximize our logistics and supply chain processes to provide better value for our customers," she said.

Dell has stepped away from UPS before. In 2003, the computer company dropped UPS and jumped to FedEx. A few months later, it switched back. And in 2005, Dell negotiated what turned out to be a short-lived program for a contractor to ship some computers to U.S. post offices for customer pickup, rather than having UPS deliver them to the homes of consumers.

Anyone else get hit with a bunch of Gateway computers today? Maybe UPS lost Dell but is making up for it...

 

[local804]

I think customer retention is very key to keep our pension checks coming way after we retire. It really sucks seeing the big boys jump ship on us. Over the years we have lost a ton of big boys and they have not come back.
JCP, Spiegal, pampered chef are a few that come to mind and there are a bunch more.

 

[browniehound]

I understand that we lost volume with Dell, but can someone who knows about this for a living please post a comment on how bad of a loss ithis is? My guess is, since it takes 2 or 3 attempts (and sometimes 4????), Dell was at that bottom of the big profitable accounts. I never like to hear that we are losing volume, but like many posters have said, I think they'll be back soon.