General Discussion
In reply to the discussion: Congress is being bribed to kill the Postal Service. Even though they do better than FedEx or UPS. [View all]haele
(12,726 posts)It's more cost effective for large businesses that have extremely high volume or large drop-shipping requirements to use UPS than to use USPS, which is set up for smaller volume and personal postal requirements. Business to Business shipping and mailing.
We use UPS and/or FedEx when shipping installation parts, technical manuals, small equipment and tools, because it makes better business sense and is more cost effective to have them come up to the shop, pick up, and deliver to one or two particular sites that also have accounts with UPS or FedEx and have regular interaction with those companies.
Our shipments are not competing for delivery or pickup with the thousands of other individual address on that delivery person's route, only the hundred or so contracted addressses the delivery person is going to that day.
The issue most people have is that for a large number of customers, USPS is the only carrier that they can use either due to locations served or because of cost. While UPS and FedEx may have a more robust express and priority service, they can only guarentee to their deliveries to established customers and from hub to hub. Unless they are willing to take a profit hit, going into universal residential and individual delivery area is not going to be a major revenue generating business model.
There's the rub with privaitzation. UPS is union. USPS is also union - but they're not required to make a profit.
That you are still union, and still have a significant employment level is a good deal. The idea of cutting labor to improve the P/E has devistated much of shipping and delivery wages. Longshoremen have been taking a major employment hit with the improvements in shipping automation.
Haele