UPS to become the Sears & Robuck Of shipping??

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All Trash No Trailer
I disagree with that statement. I think they want to become a smaller company and not have to spend any money on infrastructure and just deliver to more powerful packages and have less employees and more automation
Agreed, I can see the company dropping residential deliveries and focusing on bulk Business to Business pickups and deliveries.
I also think all of the Shipping Companies will soon do away with guaranteed Air Delivery times
 

worldwide

Well-Known Member
The record profits are convoluted due to the fact that the majority of those profits came from Covid -vaccines and we are charging the government premium dollar on those packages.

Where does this info come from? UPS does not break out any financials on the specific source of their profits so I'm curious where this info is from. UPS has only said they've delivered more than 1 billion vaccine doses but there's no way to know what that actually equals in terms of packages (a lot of the vaccines have been sent via air freight on pallets). Operating profit in Q3 was $2.9B ($1.4B from domestic US, $1B from int'l and $0.5B from supply chain) - how much of that was from moving vaccines? Only UPS knows that.

Based on their investor relations reports, UPS increased profits and volume growth are coming from SMB (small/medium businesses) and international operations. SMB volume was up just under 11% in Q3 and int'l just about 4%. Both of those groups have high revenue per piece and high profit margins. UPS is shedding customers with massive discounts that produce marginal profits (Fedex is doing the same thing). That's the whole point of "better not bigger". UPS is also taking NDA market share from Fedex, again focusing on higher margin shipments.
 
Where does this info come from? UPS does not break out any financials on the specific source of their profits so I'm curious where this info is from. UPS has only said they've delivered more than 1 billion vaccine doses but there's no way to know what that actually equals in terms of packages (a lot of the vaccines have been sent via air freight on pallets). Operating profit in Q3 was $2.9B ($1.4B from domestic US, $1B from int'l and $0.5B from supply chain) - how much of that was from moving vaccines? Only UPS knows that.

Based on their investor relations reports, UPS increased profits and volume growth are coming from SMB (small/medium businesses) and international operations. SMB volume was up just under 11% in Q3 and int'l just about 4%. Both of those groups have high revenue per piece and high profit margins. UPS is shedding customers with massive discounts that produce marginal profits (Fedex is doing the same thing). That's the whole point of "better not bigger". UPS is also taking NDA market share from Fedex, again focusing on higher margin shipments.
But on the other hand we still deliver a boatload of Amazon
 

Shift Inhibit

He who laughs last didn't get it.
The record profits are convoluted due to the fact that the majority of those profits came from Covid -vaccines and we are charging the government premium dollar on those packages. Not to mention in our center probably about 60% of our deliveries are Amazon once they finally take the rest of their stuff and get their shipping company up and running that will change The whole shipping industry. this year we had lost a lot of air volume and it’s funny we will go to the airport to pick up our volume I watch Amazon run like a fine oiled machine as we look like a bunch of chickens with our heads cut off trying to unload three planes I’m just utterly lost for words never knew this was happening.
We are still delivering/picking up poop 💩 boxes , so there’s that 🤷‍♂️
 

542thruNthru

Well-Known Member
Big companies have failed many times. Sears- Wards-J C Penney-Railway Express to name a few. I give UPS 10 maybe 15 more years If they are lucky before they vanish. The writing is on the wall.
You said all this every year for the last 13 years. You're becoming the next Dave!
 

One day at a time

Well-Known Member
Big companies have failed many times. Sears- Wards-J C Penney-Railway Express to name a few. I give UPS 10 maybe 15 more years If they are lucky before they vanish. The writing is on the wall.
my previous employer that I worked for for 22 years, Went public. with in 8 years all the short cuts to make the company look good to the investors caught up to them. All their shortcuts cost them their good people,inventory,and customers. The shell of the company was sold. I see the same thing happening with ups now. The next contract will be very interesting
 
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