You have to understand, Tom, Dick and Harry working on the dock that you talk to on a daily basis are not usually the decision makers at a company. (I'm not talking about the 1-10 person companies). The CEO\CFO\CPO are the ones who work on reducing their costs and Surepost is a way to reduce costs. Do customers come out and say all the time "I want Surepost".. No.. But do customers say "I want lower rates" Absolutely.. all the time. Surepost is our answer to offer lower rates to a customer, while still making a little bit of profit on these accounts.
The "reps" as you call them are paid on commission, when they switch an account from ground to basic, their commission goes down. So the "reps" don't want to switch customers over. However... it is better for them to switch an account from ground to Surepost, then it is to lose the account entirely to Smartpost.
If the customers were happy with the service and happy with the rates, a "rep" would be a fool to switch them since it takes money out of their pocket.
You have to make up your mind, you and others have laughed at how mgmt pays hundreds of dollars per month in our own benefits and have had a year of no pay raises and new mgmt has no defined benefit pension. Yet you also say we are bloated. Not sure how long you have been around but we have far less mgmt people then we did 20 years ago. Take for example the Finance Dept. We used to have over a dozen supervisors in finance in the district, along with 3 managers and a div mgr. We have 1/3 the districts now then we did before and finance has now 1 div mgr, 2 mgrs and 6 supvs to cover a district that used to be 3 districts. That's a huge drop in mgmt. In my old district, there used to be 9 pkg div mgrs, now the same geographic area has 3.5 div mgrs (the .5 is because that div mgr covers what was a div mgr job in the old district plus another area that was a division in the district we merged with). We went from 60 plus district mgrs to 20 districts in the US.
We have seen reduction of well over 50% of mgmt in areas like this. We have had areas like BD where we added mgmt since now we have competition and much stiffer competition then we have had in the past.
FDX pays their drivers far less then what UPS drivers earn (esp if you include the benefit costs).
I'm not saying you don't earn the money. However, I am saying FDX has shown a lot of people will do a similar job for a lot less. To say we need more reduction in mgmt isn't realistic overall. (Although in some areas such as what you don't see, I see no reason why we even need a region group anymore, those jobs s/b eliminated or moved to corporate.
A few points on your post. Lets start with the bolded Black section first. Its always easier for someone sitting behind a desk to say that drivers dont interact with the decision makers, but thats not the case. We know the diffference between the shipping department and the front office. In fact, many of us interact with the decision makers everyday and sometimes on weekends. We are alot closer to the decision makers than your reps or your management team. I am starting my 23rd year on the same route and believe me, I have forgotten more about the route and its businesses then UPS and its managers will ever know.
Drivers make a point to understand how businesses work. That includes knowing who not to waste our voices on. When we arrive and the decision maker informs us that the BD rep offered them cheaper pricing by switching to surepost, then we can tell you that customers are not asking for such a service.
Yes, everyone wants cheaper everything, but by your own admission in RED BOLD, the way to get that to the customer is to DIVERT our business to a cheaper service delivered by the postal service. thank you for that.
Why not just cut the overtime down, cut out useless management positions including division level, make routes practical, and instead of having 6 management persons in the center without decision making authority, why not start promoting hourly drivers with a full understanding of the business to make those in the trenches decisons that today cannot be made without creating a ginormous clusterphuque?
With these cuts, we could lower prices for customers who need relief and still manage the business and service the customer properly, something that doesnt happen today?
You mentioned that the BD Reps would be hurting themselves by offering surepost, but the reality is, UPS cant keep BD reps. The turnover is fugly.
There has to be a reason that reps dont stay too long at UPS. Yes there are some that do, but they make up the minority.
AS for your division level reductions, thats not what I am talking about. I am glad there have been reductions, some needed to go, others shouldnt have been hired or promoted in the first place. What I am talking about is the redundancy is useless supervisors who cannot seem to do their jobs on a daily basis. Preload mistakes are at an all time time.
All the technology in the world and yet, our misloads have tripled daily and service failures are going through the roof. 7 supervisors on the pens and we cant get out of the building before 930am and our loads look like they used a shovel to put them in.
This costs the company millions of dollars in useless overtime, mileage, service failures and customer loyalty. In reality, all you are offering the customer is a change from a crappy service to an even crapier service so UPS can save a few bucks.
The proof is in the pudding with surepost, the complaints keep coming in, and the claims are starting to add up. Eventually, claims alone will kill this program as recieving customers start to deny this service.
Peace
TOS