UPS Gambles on Gig Workers
Description
UPS is currently stuck between dropping parcel rates, rising union leverage, and stiff competition from their peers. Unlike their peers, UPS is unionized (part of the Teamsters), adding additional complexity and bottom-line pressure.
Not one to give up after 120 years in business, UPS has been looking for creative ways to make ends meet without disappointing the public. They created a massive buyout opportunity for drivers and have been working with gig drivers to handle spikes in seasonal volume without paying expensive overtime. Both strategies are saving them money, but running afoul of the Teamsters in the process.
In this episode of the Art of Supply podcast, Kelly Barner looks at UPS's challenges and the creative options they are trying in response:
- Leveraging gig drivers while warning against the danger of a loosely-managed final mile
- Introducing automation where they can, shutting warehouses where they can't
- Working to maintain a premium delivery service in a world dominated by low-cost eCommerce volume
Links:
- Negotiating the Big One: UPS and the Teamsters Labor Union
- Kelly Barner on LinkedIn
- Art of Supply LinkedIn newsletter
- Art of Supply on AOP
- Subscribe to This Week in Procurement
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