Peak Fail 2.0 Has Made Headlines

[PAS'd out]

Disagree. Most of the delays are simply because the building just can't handle the volume.

Perhaps some of it, but again comes down to UPS refusing to spend money necessary to maintain service levels. In a WSJ article yesterday our on time delivery rate last week was 91% compared with 97% same week last year. This was attributed to higher higher than expected volume, extra pickup and not enough staff and equipment to handle that volume. Sounds like lack of planning and lack of spending. If buildings are not equipped to handle volume at this important time of year then the resources need to be used to either expand or move to larger facilities.

 

[Brownslave688]

Perhaps some of it, but again comes down to UPS refusing to spend money necessary to maintain service levels. In a WSJ article yesterday our on time delivery rate last week was 91% compared with 97% same week last year. This was attributed to higher higher than expected volume, extra pickup and not enough staff and equipment to handle that volume. Sounds like lack of planning and lack of spending. If buildings are not equipped to handle volume at this important time of year then the resources need to be used to either expand or move to larger facilities.

If you ran a business would you spend billions of dollars that only make sense 20 days out of the year?

 

[soberups]

You left off the possibility of working on the 20th.

I hope we work on the 20th. It means I will be sucking fumes for DOT hours by Christmas Eve and I will get home at a decent time no matter what.

 

[Jones]

I hope we work on the 20th. It means I will be sucking fumes for DOT hours by Christmas Eve and I will get home at a decent time no matter what.

Even if you work 12 hours a day you'll still have 12 available for xmas eve.

 

[UpstateNYUPSer(Ret)]

I hope we work on the 20th. It means I will be sucking fumes for DOT hours by Christmas Eve and I will get home at a decent time no matter what.

Sure about that?

 

[a911scanner]

If you ran a business would you spend billions of dollars that only make sense 20 days out of the year?

Yes I would. Although we are full calander year business, we get an overweighted percentage of the year's business during those 20 business days.

Not to mention the fact that the rest of the world only really pays attention to what we do for those 20 days, so the good press vs. bad press is worth millions, if not billions for the rest of the year.

 

[Brownslave688]

Yes I would. Although we are full calander year business, we get an overweighted percentage of the year's business during those 20 business days.

Not to mention the fact that the rest of the world only really pays attention to what we do for those 20 days, so the good press vs. bad press is worth millions, if not billions for the rest of the year.

Good luck. Staying profitable. It doesn't usually make sense to budget for few weeks out of the year

 

[a911scanner]

Good luck. Staying profitable. It doesn't usually make sense to budget for few weeks out of the year

Losing profit for one 1/4, then making money the other 3 is how many businesses are run all year long. We would be fine.

And Retail business, which becomes our largest client this time of year has been doing this for a couple of decades now.

Bottom line is that if we spent more money on peak, maybe at a loss for the quarter, then made money the rest of the year, out profit would be just fine, so long as we aren't too far upside-down. There is not one business in the world that makes money every day, or every quarter. Saving face is worth money the rest of the year. Remember 2013? Not all of those customers have come back.

 

[PAS'd out]

Good luck. Staying profitable. It doesn't usually make sense to budget for few weeks out of the year

I don't know how long you have been with UPS but I started in 1986. Back in those days of tremendous growth and profitability for the company, peak was planned for and executed so we did not have the miserable rate of service failures we have now. They did not budget for 20 days, they planned for a very profitable and busy period with an infrastructure and temporary staffing that could accommodate the high volume.

 

[turbostixxx]

Yes I would. Although we are full calander year business, we get an overweighted percentage of the year's business during those 20 business days.

Not to mention the fact that the rest of the world only really pays attention to what we do for those 20 days, so the good press vs. bad press is worth millions, if not billions for the rest of the year.

No such thing as bad press!

 

[35years]

Link to the Wall Street Journal article...
UPS Struggles to Keep Up With Surge in Web Orders

http://www.wsj.com/articles/ups-struggles-to-keep-up-with-surge-in-web-orders-1449796191

Ok, the link wont let you read the full article.
Just Google the headline I provided in bold above to read the whole thing.

 

[Brownslave688]

I don't know how long you have been with UPS but I started in 1986. Back in those days of tremendous growth and profitability for the company, peak was planned for and executed so we did not have the miserable rate of service failures we have now. They did not budget for 20 days, they planned for a very profitable and busy period with an infrastructure and temporary staffing that could accommodate the high volume.

News flash it ain't 1986. Lots of things have changed.

Peak was very simple to plan for pre 2010 pretty much. The volume you chart looked about the same every year. A steady lead up to peak day between the 18th and 21st. Then a drop off.


Now it's all over the place.

 

[Brownslave688]

Losing profit for one 1/4, then making money the other 3 is how many businesses are run all year long. We would be fine.

And Retail business, which becomes our largest client this time of year has been doing this for a couple of decades now.

Bottom line is that if we spent more money on peak, maybe at a loss for the quarter, then made money the rest of the year, out profit would be just fine, so long as we aren't too far upside-down. There is not one business in the world that makes money every day, or every quarter. Saving face is worth money the rest of the year. Remember 2013? Not all of those customers have come back.

Lmao not all of those customers have come back? Sure they have plus some. That's why we are so heavy.

We are talking about different things. You're talking about spending money to put on some workers. Sure we could do that but for the most part this peak is running very smooth. I've had 2 twelve hour days in a rental but outside of that its been 8-9 hours.

Without accurate projections from retailers though we can't just throw money at the problem. That doesn't work.

The bigger problem is the buildings just won't handle the volume. While many on here may want to upgrade all the buildings to handle a few weeks worth of volume I say that is not a smart thing to do financially.

 

[FrigidFTSup]

here is also a new (as in Frigid) on-car at the building now

Wait, you were the old guy that came in?

 

[brownmonster]

I don't know how long you have been with UPS but I started in 1986. Back in those days of tremendous growth and profitability for the company, peak was planned for and executed so we did not have the miserable rate of service failures we have now. They did not budget for 20 days, they planned for a very profitable and busy period with an infrastructure and temporary staffing that could accommodate the high volume.

Peak was grandma sending out packages back then. The internet changed that. Sadly, there are still many people that don't have a clue about online shopping.

 

[soberups]

Even if you work 12 hours a day you'll still have 12 available for xmas eve.

I worked 14 hours on Monday and Tuesday of last week, and12.6 on Wednesday. Thursday and Friday were pretty light because I was low on hours.

 

[soberups]

Sure about that?

Yes. I work in the real world, not the BOG.

 

[UpstateNYUPSer(Ret)]

Yes. I work in the real world, not the BOG.

Your math, much like your logic regarding running air in trace, is flawed.

Your hours reset on Sunday and you could run 5 12's and still be OK.

 

[soberups]

Your math, much like your logic regarding running air in trace, is flawed.

Your hours reset on Sunday and you could run 5 12's and still be OK.

Incorrect.
Your hours reset after 34 hours off duty. The day of the week is irrelevant.
If I work 10 hours on Sunday the 20th, and then 14 hours on Monday, Tuesday and Wednesday, that means that on Thursday the 24th I will show up to work with 8 DOT hours remaining ( 10+14+14+14=52).
Try to keep up.

 

[UpstateNYUPSer(Ret)]

Sunday would be residentials only and I seriously doubt that they would give you 10 hours worth of residentials and then turn around and give you a 14 hour day on Monday.

Working Sunday is meant to take the edge off of Monday. Are you saying that if you didn't work Sunday that you would have a 24 hour dispatch on Monday?

Perhaps it is you that needs to keep up.

BTW, keep in mind that while your "hacks" may work for you, they may not work for some young kid foolish enough to follow them who may then find himself on the outside looking in.