Supply chain FUBAR

GratefulCitizen · 11-01-2021, 20:07

This guy summarizes many of the problems quite well.

When companies started outsourcing all of their logistics, they were setting themselves up for future problems.
It was a great way to make short-term profits, but the bill has come due.

Speaking on behalf of many UPS employees, we'll happily take your money.

https://medium.com/@ryan79z28/im-a-t...d-bbe0ebac6a91

Badger52 · 11-02-2021, 04:16

Thanks for the regular view from the inside you contribute. I read that yesterday morning and thought it worth bookmarking. There are some serious interacting parts in the Erector Set® of moving stuff around.

On a local note, UPS rocks in this area because their goal seems to be actual delivery rather than just 'movement detected'. The others' delivery models simply suck.

1stindoor · 11-02-2021, 05:57

Great write up. Appreciate the insight as well. Found this quote to probably be the most compelling, "This is the new normal. All brought to you by the ‘experts’ running our supply chains." Like the author stated, there's no incentive to fix the problem.

As for UPS though, aren't you still affected by the same bottlenecks as well? It's not as if UPS also has their own port or rail yard. Just curious.

GratefulCitizen · 11-02-2021, 08:21

Quote:

Originally Posted by 1stindoor

As for UPS though, aren't you still affected by the same bottlenecks as well? It's not as if UPS also has their own port or rail yard. Just curious.

I transferred out of feeders (tractor trailers) and back into package (delivery trucks) over a year ago, so I don’t directly see as much of the FUBAR anymore.
During those 3 years in feeders, the Phoenix rail yard (BNSF) underwent absolutely massive expansion and still couldn’t keep up with the increase in business.

Also during that time, the major UPS hub in Phoenix moved operations out to a newer, much larger hub in Goodyear.
So capacity has been expanding, but it just hasn’t been able to keep up with demand.

I suspect the weak links in the chain are probably labor related.
The industry has been addicted to cheap labor for decades, and the supply has run out finally.

UPS has the cited problems with hiring and retaining workers, especially in the warehouses.
It’s even become an issue with hiring/promoting package drivers.

We’ve hired three new drivers off the street over the last year in our small center (12 drivers total).
The normal progression used to be 3-5 years as a part timer before getting a shot at driving.

cbtengr · 11-02-2021, 08:46

Who isn't addicted to cheap labor? I drove by the local UPS in Coraville Iowa today, they have their Now Hiring shingle out. I always thought UPS paid pretty good at least in this area and I know their drivers earned every penny they got. These businesses are going to have to bite the bullet and pay more for labor if they expect to be able to hire anyone. We all know where these added costs get passed on to. That's the price we pay as consumers. Right now I am glad that I can afford to be a consumer.

GratefulCitizen · 11-02-2021, 09:03

Quote:

Originally Posted by cbtengr

Who isn't addicted to cheap labor? I drove by the local UPS in Coraville Iowa today, they have their Now Hiring shingle out. I always thought UPS paid pretty good at least in this area and I know their drivers earned every penny they got. These businesses are going to have to bite the bullet and pay more for labor if they expect to be able to hire anyone. We all know where these added costs get passed on to. That's the price we pay as consumers. Right now I am glad that I can afford to be a consumer.

UPS pays very well…once you’ve put in your time.
And you do have to earn your money.

This addresses the other part of the problem: labor quality.
There seems to be a strong aversion to “dirty” jobs regardless of compensation levels, particularly among millennials.

Purely anecdotal, but the gen z kids appear to be willing to work some of these dirty jobs.
Maybe they’ll fill the gap being created by exiting boomers.

1stindoor · 11-02-2021, 09:56

Another just curious question...Does UPS use contracted drivers and trucks? My daughter's boyfriend was working for FedEx. Thought it was a great job with good benefits...then later I found it he didn't really "work" for FedEx, but rather for a contracted trucking company, i.e. he was cheap labor with no benefits.

GratefulCitizen · 11-02-2021, 13:40

Quote:

Originally Posted by 1stindoor

Another just curious question...Does UPS use contracted drivers and trucks? My daughter's boyfriend was working for FedEx. Thought it was a great job with good benefits...then later I found it he didn't really "work" for FedEx, but rather for a contracted trucking company, i.e. he was cheap labor with no benefits.

UPS package handlers (hub workers) and drivers are all part of various collective bargaining contracts negotiated by the Teamsters.
Depending on the state, a particular employee may or may not be in the union.

Benefits vary according to conference, region, and local union contracts.
There is a national master contract with other aspects of the contract negotiated separately for each conference, region, and local.

There are also three small local unions in different parts of the Midwest which negotiate their contracts separately from everyone else.

During peak season (roughly November 15 to January 15), temporary hires are employed.
The feeder department brings in contractors (non-UPS truckers) to handle additional work when it exceeds our capacity.

The rules on temporary hires vary by individual local union.
I’ve heard of temporary hires being used outside of peak season in some places in order to help cover vacations.

GratefulCitizen · 11-04-2021, 22:23

A shortage of a simple part is sidelining tractors.
It takes EPA approval to put in a software fix to bypass the sensor and allow the trucks to run.

Here’s the kicker:
The sensor is basically just a fuel gauge, letting the engine know when the DEF tank is empty.

A stupid emissions rule is making supply chain problems much worse.

https://landline.media/senator-nudge...sor-quick-fix/

Badger52 · 11-05-2021, 04:49

Letters, even strongly worded letters, have more strongly worded letter import if she would loudly take this to the Select Committee on Unresolved Strongly Worded Letters.

Thanks - didn't know that was a thing.
Her effort presumes a properly functioning agency. That issue needs to be taken to the Christmas-buying & food consuming public.