UPS Boss Preaches the Power of No - Stock Xpo
Carol Tomé took over United Parcel Service Inc. in the middle of a pandemic that has sent demand for its services soaring. She’s teaching the delivery giant how to say no.
The longtime finance chief of Home Depot Inc. HD -1.82% and first outsider to lead UPS UPS -1.60% is remaking the company in her number-crunching image, in part by adopting the philosophy that delivering less can be more. And she is using the urgency created by the crisis to revamp its business model in months, not years.
Since she became chief executive in June, UPS has become more selective about which packages it ships. The company is tearing up shipping contracts midterm. Sales leaders evaluate customers less by volume than by what they deliver to the bottom line. Executives are scrutinizing divisions for possible divestitures. Prices are going up.
The push to transform UPS into what Ms. Tomé calls a “better, not bigger” company has created friction. Big retailers accustomed to UPS’s accommodating stance found themselves facing tighter shipping limits, especially during the crucial holiday season. Others were hit by price increases. Meanwhile, analysts have questioned whether UPS has become overly reliant on one customer, Amazon.com Inc., especially since the e-commerce company is building its own delivery network.
Carol Tomé took over United Parcel Service Inc. in the middle of a pandemic that has sent demand for its services soaring. She’s teaching the delivery giant how to say no.
The longtime finance chief of Home Depot Inc. HD -1.82% and first outsider to lead UPS UPS -1.60% is remaking the company in her number-crunching image, in part by adopting the philosophy that delivering less can be more. And she is using the urgency created by the crisis to revamp its business model in months, not years.
Since she became chief executive in June, UPS has become more selective about which packages it ships. The company is tearing up shipping contracts midterm. Sales leaders evaluate customers less by volume than by what they deliver to the bottom line. Executives are scrutinizing divisions for possible divestitures. Prices are going up.
The push to transform UPS into what Ms. Tomé calls a “better, not bigger” company has created friction. Big retailers accustomed to UPS’s accommodating stance found themselves facing tighter shipping limits, especially during the crucial holiday season. Others were hit by price increases. Meanwhile, analysts have questioned whether UPS has become overly reliant on one customer, Amazon.com Inc., especially since the e-commerce company is building its own delivery network.
