UPS has just enough capacity for the holidays

Author without image icon
Editorial
26 October 2015
2 min

UPS has learned from the mistakes it made during the holidays in 2013 and 2014. The parcel carrier was short of staff in 2013 to handle all parcels on time. In 2014, UPS actually hired too many employees. This year, the courier company says it has "just enough" capacity.

In most cases, UPS manages to deliver parcels properly and on time, but this is a big challenge during the holidays. Consumers set the standards and companies have to work hard to keep their customers happy. During the year, UPS delivers 'only' 13 million parcels a day, while during the holidays it averages 29.4 million parcels a day. As a result, UPS has to be smart and efficient with the resources it has. Overloading is often lurking.

Extra forces
To transport all orders on time and properly, UPS needs 95,000 extra workers to work for the company temporarily in December. The parcel carrier believes this number is just enough to handle the rush and keep consumers happy. Last year, it also hired 95,000 extra workers. That was too many then, but with the growth of e-commerce, it should be enough now.

Competition comes up with smart ideas
UK carrier Yodel is also struggling with capacity issues around Christmas. They need about 7,000 extra workers during the festive season; an increase of about 70% of the workforce. As an extra gimmick, Yodel is going to let about half of the temporary workers do their work in their own cars. As such, the company is still looking for independent carriers who will deliver from home to their own neighbourhood, Paazl writes.

Editorial LogistiekProfs