Friday, October 06, 2006

UPS Supply Chain Solutions Advises RIF

UPS supply chain operation braces for staff cuts!

UPS Supply Chain solutions plans to reduce headcount to make the operation more nimble, according to news report published today in the WSJ. The newspaper reported UPS would not reveal how many staff would be affected, but said some would be reassigned to other parts of the company or let go. The changes are expected to take place before the end of the year.

The word on the street is that the number is close 1000 people. I like the use of the word "nimble" in this press release. The knock on UPS is that they consistently deploy highly manual solutions for their clients, with little or now automation. Essentially, this makes them nimble and flexible. However, the concept of operations and solution does not equate to robust growth or have the ability to create additional velocity in the supply chain due to limitations within the four walls. Hence my take is this...
UPS is soft right now, they are losing customers in the solutions' market...and are essentially just letting staff go due to customer loses. This is proactive...lets see what the future holds.


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