Will Amazon Fire UPS Over Christmas Catastrophe?

brett636

Well-Known Member
I believe UPS has a very close relationship with Amazon so this news may not be news to the powers that be within UPS. The amazon shipping drone is a good example of this as my understanding is Amazon got help designing the drone from UPS who also unveiled a drone for the same purpose using the same design. I'm hoping that this close relationship will still benefit UPS and Amazon over the long run, but who knows what that may look like down the road.
 

Chawkat

New Member
Hello,
I am a Columbia Business School student studying the effects of e-commerce on the shipping industry.
Would any one of you be kind enough to have a quick chat, over the phone, at your convenience about the matter?
Many thanks,
Chawkat
 

barnyard

KTM rider
What's their to study??? Seriously. More people are ordering stuff online and the companies that deliver it are getting bigger and making more money.

You must be writing an article for the news magazine, "Duh."
 

Dracula

Package Car is cake compared to this...
Amazon is as much responsible for this regional failure as we are.

FedEx turned away Amazon volume mid-way through Peak.

Until such time as Amazon has their own delivery company in place they will have to continue to deal with UPS and FedEx.

According to MsPacMan, UPS and Amazon signed a 5 year exclusive contract beginning in 2014.

The common thinking around here, is we took the shot on the chin for Amazon's over-optimistic projections and promises. That is a shot we are welcome taking. Even outside observers could see UPS was doing everything we always do during peak.

But when retailers and Amazon is telling customers that they could order until 3PM on December 23RD and get delivered by the next day, and customers wait that long until they DO order, well, then, UPS will never be able to fit 500 pounds of rice in a 5 pound bag.

I know a driver that knows a UPS pilot, and he asked him about this, thinking UPS didn't have enough planes to do the job right. He said the pilot laughed at him, and said UPS could have had every aircraft in the US working during the 23rd-24th, and it wouldn't have made any difference, because airports have a finite amount of room on the runways for airplanes to land. He said the fact that Fed-Ex DIDN'T have the problems we had during the final days of peak was worse news for them than it was for us.

From what we are hearing, UPS is going full-throttle expanding building, nation-wide. And Amazon is doubling down with us.
 

MoarTape

Well-Known Member
From what we are hearing, UPS is going full-throttle expanding building, nation-wide. And Amazon is doubling down with us.


Do you know if they're expanding buildings or what? I know of Memphis being expanded, but have you heard of anything else?
 

Dracula

Package Car is cake compared to this...
Yes, they are. Both of our metro buildings are getting expansions, and from what I've heard, it's an national add-on.
 

upschuck

Well-Known Member
I heard through the grapevine that they are planning on building a new building in a neighboring city for the hub operation, and leave the centers here, instead of expanding the present building.
 

TUT

Well-Known Member
because airports have a finite amount of room on the runways for airplanes to land. He said the fact that Fed-Ex DIDN'T have the problems we had during the final days of peak was worse news for them than it was for us.

From what we are hearing, UPS is going full-throttle expanding building, nation-wide. And Amazon is doubling down with us.

1. Truth on Airport runways. This is the bottle neck.

2. Bending reality about Fedex's situation being worse. They may have turned back Amazon, but there are like another million customers in the world, they weren't turned down. They also had the same issue of retailers worrying about their bottom line above all else, selling anything at the 12th hour promising what cannot be done. Everyone in the last days move their shipments from ground over to air, thinking they can make up time for late orders. The only hope you have is that Retailers/Buyers learn.

3. The Amazon doubling down, if true imo just proves the really have no choice in the matter and no matter what UPS or Fedex does. If retailers are going to act like they did last year, expect the same, a double down on that if there is bad weather.

It Retailers and Consumers are going to have the same habits each year, it will become obvious to most of us, learn and adapt. Those that continue to repeat the same thing over and over... well they just can't be all that smart. News will wane over time because they'll bring on a consumer expert at the beginning of each Dec and tell the masses "Order your stuff X days ahead of time, to make sure you have it", thus they told the masses and if they don't listen it's their issue, no need to point elsewhere, you were warned. This is far from the only things in our lives we have to plan out. Bet on a lot of news next Dec about consumers being told "order early".
 

Overpaid Union Thug

Well-Known Member
The common thinking around here, is we took the shot on the chin for Amazon's over-optimistic projections and promises. That is a shot we are welcome taking. Even outside observers could see UPS was doing everything we always do during peak.

But when retailers and Amazon is telling customers that they could order until 3PM on December 23RD and get delivered by the next day, and customers wait that long until they DO order, well, then, UPS will never be able to fit 500 pounds of rice in a 5 pound bag.

I know a driver that knows a UPS pilot, and he asked him about this, thinking UPS didn't have enough planes to do the job right. He said the pilot laughed at him, and said UPS could have had every aircraft in the US working during the 23rd-24th, and it wouldn't have made any difference, because airports have a finite amount of room on the runways for airplanes to land. He said the fact that Fed-Ex DIDN'T have the problems we had during the final days of peak was worse news for them than it was for us.

From what we are hearing, UPS is going full-throttle expanding building, nation-wide. And Amazon is doubling down with us.

Good post. Many UPSers continue to blame management but in reality it was Amazon's fault. Most of them probably already have such a hateful destain for UPS engrained in them that they could never see the truth.
 

joeboodog

good people drink good beer
If someone had told Amazon and other retailer the reality of the situation that the only way we could handle such massive volume is for all factors (weather, equipment, personnel) to break in our favor. Instead they over promised just as Amazon over promised. This year we should make it clear to all that we will endeavor to make service commitments at a certain volume level all bets are off.
 
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