FedEx and UPS beef up staffing ahead of the holidays
21.09.2015 509 views
With a busy holiday season looming, two major shipping companies are adding about 150,000 employees to keep up with the anticipated spike in demand.
FedEx Corp. plans to hire more than 55,000 employees nationwide in advance of what it projects as “another record peak holiday season,” according to FedEx Services CEO Mike Glenn.
“We’re not slowing or adjusting our service commitments heading into peak,” Glenn told analysts on FedEx’s Q1 2016 earnings call, according to a transcript from Seeking Alpha. “We’ve been closely working with our customers all year to understand their peak shipping needs, and we stand ready to deliver.”
UPS Inc. said it plans to hire up to 95,000 seasonal employees—about the same number it hired last year—to make sure customers get their packages on time. A spokesman tells Internet Retailer the company has made a number of adjustments this year so it doesn’t fall behind during peak times.
“We’ve upgraded several sorting facilities with state-of-the-art sortation equipment to increase throughput, essentially allowing us to need fewer people while being able to handle more volume,” the spokesman says. “We’ve also expanded several hubs to allow for more volume.”
Handling additional volume comes at a cost, however, and it’s a cost that will be passed along to its high-volume customers. Chief commercial officer Alan Gershenhorn had warned of potential peak surcharges on the company’s second quarter earnings call in late July.
UPS says the number of packages it delivers per day during peak periods is nearly double that of an average day, spiking to 32 million from 17 million on its busiest days.
The spokesman says the company has not yet determined what kinds of surcharges customers will incur during the holidays.
“UPS is working with customers that require the most significant capacity in our network during peak [times] to establish pricing that compensates UPS for the additional costs of service, while at the same time ensuring competitive pricing and high service levels,” he says. “The pricing and peak service plans are developed on a customer-by-customer basis since they have different needs depending upon their holiday shipping programs and delivery service plans that they choose to offer to consumers.”
Source: Internet Retailer
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