![]() So we’re like, ‘all right, what we’re doing isn’t working. “Yes, the density was the best this quarter since 2019, fractionally. “We’ve tried to move the needle for a long time and we haven’t been successful, principally because we’ve been focused on downstream, improving delivery density through access points or SurePost Redirect. She also said UPS was looking at upstream delivery density. Our end-to-end network is allowing us to deliver record high service levels, and that matters. Ms Tome also noted that UPS was discounting less, adding: “And part of that is because our customers value the service that we provide. “So we are running our business the way that we want to run it in this better, not bigger, framework despite the macro environment.” She added: “Another fun fact is that in the second quarter, we won new great revenue quality business in the enterprise part of our segment than we have in the past five years. Now that volume hasn’t come into the network yet, because we just won it, but it’s coming in the back half. Going through some “fun facts”, in what one analyst called a “stunning performance” by Ms Tome, she noted that of UPS’s top 20 customers, more than 65% grew volumes with the operator. She added: “More than half of the volume decline in our business, including air, was because of agreements we reached with a few of our customers on the volume we will take and the volume we won’t take.” That gives us room to grow in the parts of the market that we want to grow, like SMB, B2B, healthcare and others.” “We project by the end of this year that Amazon revenue will be less than 11% of our total. That means both volume and revenue for Amazon is coming down. But we’ve contractually agreed on what makes sense for us versus what makes sense for them. ![]() “The last time I looked, $35bn of inventory. She added that “Amazon has a lot of volume to deliver”. But, as we’ve shared with you in the past, we have reached a contractual agreement with Amazon about the volume we will take into our network and the volume they will deliver.” “We have a great relationship with Amazon, our largest customer. “More than half of the volume decline in the United States was based on actions we took with a few of our customers under our better, not bigger, framework. “I would call that pretty close to being on forecast,” she said. In an earnings call, CEO Carol Tome noted that the integrator saw volumes fall, missing its forecast by some 222,000 packages a day. UPS is cutting its work with Amazon – in a way that “makes sense for us” – to focus on delivery density.
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