It’s a shame (maybe a sham). 80% of recipients at the front line, who busted their ass 7 days a week, slept in their offices, etc to make peak happen are held hostage by pricing decisions at the top. The profit results announced this week show what a sham this is. For 3, 4 or maybe five years now, we have much more volume than we can handle.
I think it was Scott Davis or Kuhn who said at the start of this resi explosion that “you don’t build a church for Easter Sunday. Here we are many years later with the same problem, except in the UPS way, we continue to jam more people into the church, with no regard to what happens to them.
This isn’t a hard problem to solve. The local Bar is charging $185 cover charge for a seat to watch the game Sunday night. On Monday, you can have the seat for free! How can a local bar owner figure this out and the brain trust at the top of Ups can’t get it right for nearly a decade!
Year round -looking at packages in the cars in my building shows about 10% with smileys on them. Based on the names painted on the boxes, there are one here and there from a multitude of national retail outlets. Yet during December, 30% of the boxes have smileys and 20-25% of the rest of the car is other national retailers’packages.
Hell, look at the irregular belt. Remember the days when it was exhaust pipes, tires, buckets and crated items? When did we begin hauling furniture again?
I listened to the webcast of the earnings call this morning. The top sales guy says he is targeting and happy with 2-3% yield growth year over year. WHAT? How is our main non gov’t competitor getting much higher than 3% and we’re happy with 2-3? The last guy to ask a question nailed it - paraphrasing- why don’t you go after higher rates even if it means less volume? BINGO - So the guy who owns a bar figures it out - airlines have been pricing based on demand for decades, Uber is less than 10 years old and they have dynamic pricing, but the smartest leaders in the logistics business can only develop slogans like forward fast vs solve their own problem?
This is nuts and won’t be solved until several management committee leaders are fired. One retiring here and there won’t fix this. The Board of directors has failed in their oversight of this company. Most of them have been there across both CEO/CFO regime change.
The Board needs to act swiftly at their February meeting. How many years are they going to listen to this management committee promise a successful peak, only to see the results of a system built in the 60’s and 70’s fail under duress. Are they going to award the management committee with a higher MIP factor than the front line? (It will be in the proxy when released in March)
How many more years are the management people going to be good little “determined people” and do whatever it takes to jam 200% through a 120% tube?
My guess is MIP will be somewhere between 70 and 100. It won’t be 100 since we didn’t make the earnings target and service sucked. It won’t be less than 70 because they won’t be able to contain the revolt that number would cause. Pin me down and I’ll say 85.
It’s nonsence. With a “premier network” over capacity - we should be at 120 and above.
remarks like that. He must have picked them up from all those McKinsey and Deloitte consultants he had up his butt all those years.
