DHL Impact on UPS Business from the Trenches
- Thread starter Dfigtree
- Start date
Jack4343
FT DR Specialist
My route just regained a customer that diverted most of their business to DHL. They left because DHL offered them a ground rate price on a big air shipment. Of course, DHL has missed several p/u days including yesterday. Today when I came to pick them up, the DHL packages that were sitting there yesterday now had UPS labels. One down...many to go. I've seen many small to medium shippers go to DHL when they undercut us but watched many come back within a few months. I'm sure there are good and bad DHL drivers but the DHL drivers I've seen here have a horrible appearance, blast their radios full blast and are constantly on the phone...including while in a customers business. Heck, I even had one DHL driver approach me about buying porn. He had a side business selling porn DVDs and approached everyone about it. Needless to say that he's gone. I don't know what Deutsch Post is throwing their money at but I can tell you that labor is not one of those things. They are paid just slightly higher per hour rates than McDonalds. You get what you pay for I guess. One of my biggest pet peeves is when I got to a dock to make a large delivery, I arrive only to see DHL nosed into the dock, walking into the back door carrying an envelope. Are they not trained to avoid backing or to back first if they have to back? Basis safety stuff...
Coldworld
Well-Known Member
Im not really sure where ups is loosing money, or volume. We had a PCM a few weeks ago that stated that ups made more money and delivered more packages than the year before. Look at the information about average daily volume. It has been growing on the air and ground side, even with fedex and dhl. Can someone with knowledge explain this to us. Competition is taking our volume but we have record volume, it just doesnt make any sense. Our volume last year grew more than the last couple of years probably because of sales leads, and this year will grow more than 2006 because of national programs going into effect. If ups was loosing substantial volume, they would have pas fixed in a week, along with other things. It just isnt happening.
Some info from the earnings report:
For the full year of 2006, revenue rose almost 12%; operating profit increased 8%, and earnings per share climbed 11.2% to $3.86. The international business reached new heights, reporting more than $1.7 billion in operating profit. The company set a new record for package volume in 2006, delivering almost 4 billion packages or an average of 15.6 million per day.
The fourth quarter produced solid earnings growth despite a slowing U.S. economy. Consolidated average daily package volume rose 3.3%, or 558,000 additional packages each day. Pricing remained firm around the globe. Consolidated average revenue per piece increased 2%.
Ground volume posted a healthy 3.6%
(Peak volume and internet sales)
increase in the quarter. Next Day Air(R) volume declined marginally and deferred volume was flat against strong prior-year results.
Total international export volume grew 11.3%. Non-U.S. domestic package volume posted solid 4% growth as the company overlapped the effect of an acquisition.
Keep in mind Fed Ex Air and Ground use to be our packages. The USPS had been our only competitor for a long time. Even USPS has cleaned up its image and is providing better service on packages. Don't be complacent.
Keep up the great service
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