Is UPS Starting A Trend By Opening Stores in Areas Where Post Offices Were Closed?
The Postal Service is closing post offices across the nation in an effort to save money. But it seems a trend is starting by UPS Inc to open up stores in places where USPS is shutting down. If UPS opens stores in areas where the Postal Service has shut down–USPS could possibly lose many of the customers it once enjoyed at the closed Post Offices. A reader told PostalReporter.com that one of their stations will more than likely be closing soon. Recently UPS opened a store that will be closer than the Post Offices that USPS will recommend customers to take their business. UPS even provided donuts to the postal window clerks working at the station pending closure. UPS is so happy about USPS possibly closing this station they are celebrating in advance. On another note it would be interesting to see USPS revenue reports in cities where Post Offices closed with UPS OR Fedex nearby.
Take a look at a this story from the Oregon Daily Herald about UPS opening store in Oregon..
UPS Inc. fills role of outgoing Postal Service in EMU
The Postal Service officially made the decision to consolidate its Eugene offices on Jan. 14, after a closure announcement made last October followed by an unsuccessful appeals process. Students in the ASUO and International Student Association protested the decision to no avail, and the EMU post office shut down.The new business will take up the space formerly occupied by the Postal Service, but the senator said the UPS Store would refurbish the current office to fit its needs and use the existing mailboxes.
“Their main goal is to provide services as soon as possible so they’re going to try to move in ASAP and keep the move-in period short,” Lange said.
Postal Service media spokesperson Ronald Anderson said the public postal service had no comment on the new private courier.
Editorial: Not all post offices should pay their way
Filed under: APWU, fedex, post office closings, postal, postal news, ups, usps
In an editorial by the Concord (New Hampshire) Monitor they wrote:
The postal service has since the 1980s operated as an “independent establishment of the executive branch” and, as such, is expected to be self-supporting. For the most part, it is. But in exchange for its monopoly on first and third-class mail, it is charged with providing universal service, which means delivering mail at a loss in many parts of the nation.
Some 26,000 of the service’s post offices operate at a loss. The service has embarked on a long and cumbersome review of 2,000 of those offices to decide how many to close. By law, it is not allowed to close offices solely because they are losing money. Doing so in some cases makes sense. In other cases – for example, when the nearest alternative post office would be many miles away – a money-losing office shouldn’t be closed.
Some conservatives want to end the postal service’s monopoly and let private companies deliver rural mail. Rural residents, of course, would be charged rates commensurate with the cost of delivery. A move in that direction, however, would be a tragic break with history and a breach of the social contract, one that would be economically and sociologically devastating to much of rural America. Read full article
Not so fast! At a meeting last year the Postal Service briefed APWU National officers about plans to consolidate operations in large stations and branches. USPS conceded that:
…among the reasons for closing stations and branches is that there are fewer “procedural requirements” for closing stations and branches than for small post offices. They also said that 34 percent (now 35%) of current postal revenue comes through alternative access, and that they are striving to increase that percentage.
The reasons given by USPS on what Triggers a station/branch to close or consolidate:
Operational Efficiencies
Declining Office Workload
- Retail Transactions
- Mail Volume
Proximity of Other Facilities
Loss of Lease; No Suitable Alternate Quarters
Economic Savings Offered through Alternative Service
So is it closing money-losing stations/branches, a way to increase alternative access to postal services or both?
APWU expressed its concern that USPS may be attempting to circumvent the contract:
We also believe that if management backfills the stations and branches it closes with contract postal offices (CPUs), this would violate the procedural requirements on subcontracting in Article 32.1 of the Collective Bargaining Agreement.
The other point to ponder: In many of the locations where stations/branches are closing or consolidating sits FedEx Kinkos and UPS stores. So USPS customers may choose to utilize alternative companies in lieu of traveling the extra distance for USPS alternative access to mail services. Only time will tell.
Below is a timeline USPS developed for closing Post Offices (9 months or longer) vs. “Classified” Station/Branches (4 months)
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Task Name [Post Offices]
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Duration1
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Authorization to Study
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10 days
|
|
Review & Investigation Study (data gathering)
|
25 days
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|
Community Input
|
25 days
|
|
Proposal* Posting & District Manager Review and Approval
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100 days
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Headquarters Review & Final Determination
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30 days
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Final Determination Posting and Customer Appeal Period*
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30 days
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If appealed, 120 days are added to timeline for PRC Review
|
|
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Office Closeout (60 days after posting of final determination)*60 days
|
|
Classified Stations/Branches
Task Name
|
Duration1
|
|
Authorization to Study
|
5 days
|
|
Review & Investigation Study (data gathering)
|
15 days
|
|
Community Input
|
20 days
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|
Proposal (No Posting)
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10 days
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Headquarters Review & Final Determination
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10 days
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|
Union Notification and Office Closeout (60 days after HQ Decision)
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60 days
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FedEx Is Again USPS’s Largest Supplier For 8th Straight Year
FedEx transports Express, Priority and First Class Mail, and earned postal revenues of $1.373 billion (corrected) in fiscal 2010. While at the top of the list, FedEx’s postal revenues declined from a high point of over $1.6 billion. Another postal competitor, United Parcel Service (UPS) , is the Postal Service’s 12th (corrected) largest postal supplier, earning $95 million in revenue – a $12 million increase from last year.
Husch Blackwell’s Postal Service Contracting practice group today released its list of the top 150 U.S. Postal Service suppliers for fiscal year 2010, and for the eighth straight year FedEx claimed the No. 1 spot with Northrop Grumman jumping from fourth to second. The list is compiled by David P. Hendel, a partner in the firm who has served clients’ postal contracting needs for 29 years. This is the 15th year for the list.
First-place FedEx transports Express, Priority and First Class Mail, and earned postal revenues of $1.373 billion in fiscal 2010 – falling slightly from the $1.4 billion it earned in fiscal 2009. Another postal competitor, United Parcel Service, is the Postal Service’s 12th largest postal supplier, earning $95 million in revenue – a $12 million increase from last year.
“Once again, transportation and technology providers stand atop the list of the Postal Service’s largest suppliers,” said Hendel, who compiles the list from information obtained under the Freedom of Information Act. “But unlike last year, in fiscal 2010 more top suppliers had declines rather than gains in postal revenues.” The sharp decline seen in postal spending over the previous several years has stabilized; spending in FY 2010 totaled $12 billion, a 1 percent decrease over FY 2009. By contrast, postal spending in FY 2009 declined more 19 percent from FY 2008.
Second-place automation supplier Northrop Grumman earned $494 million in postal revenues. Northrop Grumman provides automation design, equipment fabrication, field deployment and logistics support to the Postal Service.
Other companies in the top 10 include third-ranked Kalitta Air, an air transportation and mail distribution service for military mail bound for Iraq and Afghanistan; trucking contractor Pat Salmon & Sons, Inc. in fourth place; systems manufacturer Siemens in fifth; computer company Hewlett-Packard in sixth; transportation company Wheeler Bros., Inc. in seventh; advertising agency Campbell-Ewald in eighth; consulting company Accenture in ninth; and the number 10 spot was secured by technology company IBM.
“Opportunities for facility contractors continue to decline in 2011 as the agency is unlikely to build many new facilities in a time of decreasing mail volume,” Hendel said. “But opportunities do exist for modifying existing facilities and retrofitting facilities for energy conservation purposes.”
Other trends identified in FY 2010 figures:
* Increased spending on ground transportation – up 5.3 percent from FY 2009
* Decreased spending on domestic air transportation – down 2 percent
* Decreased spending on international air transportation – down 26 percent
* Spending on supplies and services remained stable
The firm’s Postal Service Contracting group assists clients in contracting with the U.S. Postal Service, and its members are knowledgeable regarding the needs specific to the postal industry. Hendel has developed and presented several training courses on postal contracting. He also writes a monthly column on postal contracting issues for the National Star Route Mail Contractors Association. He has represented hundreds of postal contractors on a wide range of issues.
——
Top 12 USPS Suppliers for 2010
Federal Express Corporation
$1,373,140,689
Northrop Grumman*
$494,601,395
Kalitta Air LLC*
$371,823,791
Pat Salmon & Sons Inc*
$142,869,164
Siemens*
$134,774,653
Hewlett Packard Co*
$133,240,521
Wheeler Bros Inc
$124,868,868
Campbell-Ewald (includes payments to 3rd parties)
$121,573,393
Accenture
$115,091,627
International Business Machines
$114,588,310
Mail Contractors of Arkansas Inc*
$104,668,098
United Parcel Service Co*
$95,068,821
Top 150 USPS suppliers for Fiscal Year 2010
UPS to Require Photo IDs For Shipping Packages At All Retail Locations
Will this new requirement give USPS more business?
UPS is now requiring photo identification from customers shipping packages at retail locations around the world, a month after explosives made it on to one of the company’s planes.
The Atlanta-based package courier said Tuesday the move is part of an ongoing review to enhance security. The directive will apply at The UPS Store, Mail Boxes Etc. locations and other authorized shipping outlets.
UPS customer centers have required government-issued photo identification since 2005.
In late October, a printer cartridge on a UPS cargo plane bound for Chicago was stopped in London after explosives were discovered. The package was later traced to a retail location in Yemen.
The stepped-up security also comes as UPS prepares for its busiest shipping day of the year. United Parcel Service expects to deliver 430 million packages between Thanksgiving and Christmas, and 24 million packages alone on its busiest day, projected to be Dec. 22. That’s up 60 percent from a normal day.
“Since retail centers experience a significant increase in business from occasional shippers during the busy holidays, this enhancement adds a prudent step in our multi-layered approach to security,” UPS Vice President of small business and retail marketing Dale Hayes said in a statement.
UPS Mail Innovations Opens State-of-the-Art Processing Center Near Phoenix
The United States Postal Service has awarded UPS a $280 Million four-year contract for “air transportation and terminal handling services in support of a nationwide air transportation network.”
The day after USPS awarded the contract, UPS issued this press release on opening a new state of the art mail processing center:
UPS Mail Innovations Opens State-of-the-Art Processing Center Near Phoenix
Company Also Invests in Sorting Technology for New Jersey Center
UPS Mail Innovations, the business mail services unit of UPS , has opened a new processing center near Phoenix to improve service to companies in Arizona and New Mexico that rely on UPS to manage their outbound mail processing.
UPS Mail Innovations handles the pick-up, processing and sorting of its customers’ outbound mail pieces weighing less than one pound and applies postage before delivering the pieces to the U.S. Postal Service for final delivery. With the opening of the new facility in Tolleson, Ariz., UPS Mail Innovations now processes mail at 16 locations in the United States.
The Arizona facility is processing approximately 20,000 mail pieces each day for distribution to others parts of the country and also delivering about 28,000 already-processed mail pieces each day to nearby Postal Service facilities for final delivery. Customers include companies in the retail and pharmaceutical industries, among others.
“UPS Mail Innovations serves customers that have opted to outsource their mail operations, saving them time and money,” said David Larkin, regional manager for UPS Mail Innovations. “Opening this facility in Arizona enables us to offer customers in the region more efficient and effective service than ever before.”
The opening of the facility is the third major recent investment by UPS in UPS Mail Innovations. In October 2009, the company added a new parcel sorter to its facility near Logan Township, N.J., allowing for more complete and speedier processing of under-a-pound parcels. Later this month, the company will double the size of its facility in Rancho Cucamonga, Calif., and next year install a parcel sorter at that facility.
“We continue to invest smartly in UPS Mail Innovations because we recognize the critical role it plays in helping businesses operate and grow,” said John Walsh, vice president of business development, UPS Mail Innovations. “Business mail processing, when done right, is a vital part of effective logistics for any business.”
UPS Mail Innovations is a work-share partner with multiple postal authorities around the world. Helping companies more efficiently and effectively manage their outbound mail while pursuing maximum postage savings, UPS Mail Innovations is an important component of UPS’s expanding portfolio of package delivery, transportation and logistics services. For more information, visit upsmailinnovations.com.
UPS 3Q Earnings Climb 69 Percent on Revenue Growth of 9 Percent
UPS (NYSE:UPS) today announced adjusted diluted earnings per share of $0.93 for the third quarter of 2010, a 69% improvement over the prior-year period. Global revenue grew 9.3%, generating $1.5 billion in adjusted operating profit, a 62% increase.
On a reported basis, diluted earnings per share were $0.99, an 80% increase over the $0.55 in the same period last year. During the quarter, UPS recorded an after-tax benefit of $61 million on the sale of real estate.
“UPS once again exceeded expectations due to superior execution across all business units and our ability to provide solutions that create value for our customers,” said Scott Davis, UPS chairman and CEO. “We continue to deliver significant earnings growth and margin expansion in the current economic environment. This is a true testament to what can be accomplished when you have excellent people, superior service and an unmatched global portfolio.”
Based on the company’s performance, UPS has increased its guidance for 2010 adjusted diluted earnings to a range of $3.48 to $3.54 per share, a 51%-to-53% increase over last year.
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Adjusted
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|||
| Consolidated Results |
3Q 2010
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3Q 2010
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3Q 2009
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| Revenue |
$12.19 B
|
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$11.15 B
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| Operating profit |
$1.62 B
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$1.51 B
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$929 M
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| Operating margin |
13.3 %
|
12.4 %
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8.3 %
|
| Average volume per day |
15.0 M
|
|
14.3 M
|
| Diluted earnings per share |
$0.99
|
$0.93
|
$0.55
|
For the three months ended Sept. 30, 2010, revenue increased 9.3% on average daily volume growth of 5%. UPS delivered 958 million packages in the quarter.
Adjusted operating margin expanded 410 basis points to 12.4%. On a reported basis, operating margin was 13.3%.
During the quarter, UPS unveiled a new communications platform with the theme “We Love Logistics.” This campaign is UPS’s first coordinated global advertising effort and is designed to demonstrate the power of logistics to businesses around the world.
Full story: UPS 3Q Earnings Climb 69 Percent on Revenue Growth of 9 Percent – UPS Pressroom.
UPS Joins USPS to Enable Consumers To Return Packages via Home Mailbox
UPS Makes It More Convenient to Return Goods
ATLANTA, Aug 12, 2010 — UPS today announced it is launching UPS Returns(R) Flexible Access, a new service with a unique label that allows consumers to drop returns at any U.S. Postal Service(R) (USPS) location or personal mailbox in addition to the thousands of UPS locations nationwide.
UPS began testing the service last year with a few retailers such as BuySeasons, the largest retailer of costumes and party supplies on the Internet. Because of the positive customer response, UPS now is making the returns service more broadly available.
“Our experience with UPS is enabling growth for our business and allowing us to provide a higher level of service to our customers,” said Terry Rowinski, vice president of operations for BuySeasons. “UPS Returns Flexible Access is an innovative solution and we are excited to be one of the first customers to implement the product into our business model.”
UPS Returns Flexible Access utilizes the Postal Service’s Parcel Return Service(R), combined with UPS’s own drop-off locations and delivery network, to provide retailers’ customers with increased convenience when returning items. Customers of participating retailers receive special package labels that allow them to enter returns packages in more than 150 million postal access points — including personal mailboxes — for their postal carrier to pick up.
Consumers also can drop the package off at their local U.S. Post Office,(TM) in postal collection boxes or at traditional UPS drop-off locations including The UPS Store(R), UPS drop boxes, UPS customer centers, third-party retailers (Office Depot, Staples, and Authorized Shipping Outlets) or hand it to a UPS driver. The combination of UPS and postal access channels creates the most extensive returns network available to consumers today.
After a returns package is transported to a Postal Service location for dispatch to UPS, a UPS driver picks it up and transports the package back to the retailer via the UPS ground network. This offers retailers an inbound view of returns packages, facilitating improved customer service and cost savings due to better inbound operations planning.
“This game-changing consumer-to-business returns service improves UPS’s returns portfolio, which is already the most extensive in the industry,” said Linda Shepherd West, new product development director at UPS. “Working with the U.S. Postal Service to process returns through more than 150 million access points provides retailers the added flexibility they need to enhance their customer’s overall experience.”
UPS Returns Flexible Access is just another example of the enhancements UPS is making to its market-leading returns portfolio. UPS Returns services feature better time-in-transit than traditional returns consolidators. In addition, most UPS Returns services are available internationally, simplifying the returns process from 98 countries or territories around the globe. The UPS Developer Kit enables customers to integrate UPS Returns(R) into their own Web sites and enterprise applications.
To learn more about UPS Returns Flexible Access, visit www.ups.com/flexibleaccess.
AT & T Ships Products To Postal Employees Using USPS Discount Program Via FedEx, UPS
The U.S. Postal Service has an “agreement with AT&T Wireless to provide discounted wireless phone service, phones, and accessories to postal employees.” However, whenever Postal Employees order products online at AT & T’s website, the items are shipped via FedEx or UPS. An AT & T representative explained that shipping costs are cheaper using FedEx or UPS.
So let me get this straight, Postal Employees order products from AT & T online and its boosts the shipping volume for its largest competitors? If USPS signs an agreement with a company (which may include shipping) shouldn’t one of the prerequisites be that products are shipped via the U.S. Postal Service?
The USPS also has wireless phone service, phones, and accessories agreements for its employees with Verizon Wireless, Sprint Nextel Wireless, T-Mobile Wireless and U.S. Cellular. It will be interesting to find out if any of these companies utilize USPS for shipping its products to Postal Employees.
AT & T Ships Products To Postal Employees Via Fedex, UPS