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Driving Success: Why the UPS Model For Managing 112,450 Drivers Is A Competitive Advantage
As the first line of daily contact with 7.9 million customers, UPS drivers are the most visible part of the company’s business. And after 100 years, they remain a key competitive advantage.

While some competitors use a significantly different model to manage drivers, UPS still believes its drivers - and its system - are the best. Third party customer surveys conducted for UPS consistently rank its drivers ahead of competitors’, particularly in the areas of knowing customers’ businesses and needs and providing professional service.

J.D. Power and Associates in 2004 ranked UPS highest in business and customer satisfaction for domestic air, ground and international delivery, calling out delivery drivers among the areas where UPS performs particularly well.

Here’s why:

Integrated Network

  • UPS has the most integrated network in the business - one driver and one vehicle for air, ground and international shipping. Some competitors use three drivers, and three trucks, to handle the same volume.
  • An integrated network is more efficient. That’s a key reason UPS can handle a volume increase from nearly 16 million packages and documents on an average day to more than 22 million during the holiday Peak Season. Drivers leave with full trucks every day and return with trucks full of new shipments.

Strong Relationships

  • Because UPS drivers earn industry-leading pay and benefits, the competition for driver jobs is fierce and turnover is virtually non-existent - less than 2 percent. Nearly 40 percent of UPS drivers have 15 years or more of service and nearly 17 percent have 25 years or more.
  • In comparison, the U.S. Bureau of Labor Statistics, recently reported the median number of years that wage and salary workers age 16 and over have been on the job with their current employer is 4 years (Source: Workforce Management, January 2006).
  • Many UPS drivers work the same route for 20 or 25 years. In contrast, a major competitor reserves the right to reconfigure some drivers' routes with five days' notice, meaning their customers, service area and earnings power can change quickly.
  • UPS drivers form a real bond with customers. Anecdotal survey responses show, for example, that customers often invite them to company picnics or their children’s weddings.
  • A formal program that gathers sales leads from drivers generates volume of more than 60 million packages a year, largely because drivers take tremendous ownership of their customers and routes.

Efficiency, Safety and the UPS Way

  • UPS’s drivers are renowned for their efficiency, following standardized procedures for everything from how to hold their keys to tapping the horn while backing up.
  • UPS drivers are among the safest on the roads, logging more than 2.5 billion miles a year, and averaging more than a million miles without an accident. More than 4,451 active UPS drivers have gone over 25 years without a single avoidable accident. Two hundred forty one drivers have gone 35 years.
  • UPS employees typically work for the company four to 12 years before becoming a driver. They understand UPS’s culture long before they get behind the wheel.

The Best Training

  • New UPS tractor-trailer drivers receive 80 hours of computer-based and on-road training before operating equipment. Managers undergo a rigorous and thorough 17-day course at UPS’s Driver Training School in South Holland, Ill., before returning to their home offices to train drivers.
  • UPS package car drivers receive 20 hours of computer-based and on-the-road training, plus three safety ride evaluations during their first 22 days on the job. They make simulated deliveries in a mock city - “Clarkville, USA” - before they make their first live delivery.
  • Training continues throughout a driver’s career.
  • More than 100 companies and law enforcement agencies have approached UPS to benchmark their training and methods.

The Best Pay

UPS drivers typically earn about US$28 an hour (straight time).

The Best Benefits

UPS drivers (and part-time employees) receive full health benefits including medical, dental and eye care.

Some competing drivers are considered contractors - and don't receive paid vacation or sick days, contributions to retirement plans, or health benefits. These drivers also must pay a fee if they need another driver to temporarily cover their route.

The Best Vehicles, Maintenance and Support

UPS provides all drivers with a vehicle specifically designed to perform in the environment they work in. All fuel, oil and maintenance are provided by UPS. In fact, UPS’s Preventative Maintenance Inspection program keeps the fleet in tip-top shape so drivers can focus on their work - satisfying customers. UPS automotive mechanics are assigned to a group of vehicles and they stay with that group for the duration. That level of responsibility means each vehicle gets personalized maintenance - before anything goes wrong. UPS also provides insurance for accidents and injuries while on the road.

In contrast, some competing drivers are considered contractors and must provide their own trucks and package scanners. They also are responsible for all operating expenses including fuel, oil, taxes, tires, repairs, license fees and tolls, along with Work Accident and Workers Compensation insurance. In addition, they must pay for things like clean uniforms, vehicle washing, annual DOT inspections and drug testing.

Pension

All drivers receive generous pension contributions from UPS.

Paid Vacation

After 15 years with the company, drivers receive seven weeks of vacation, sick days, holidays and optional days. Drivers with 25 years of service receive nine weeks of vacation, sick days, holidays and optional days.

The UPS Model Versus a Contractor Model

UPS Contractor Model
Generous pension No pension
Excellent health care coverage No health care
Highest wages in the industry Lower wages
Vehicles, fuel and oil are provided by UPS All must be provided by contractor
Expert maintenance provided by UPS Must be paid for by contractor
Insurance for accidents provided by UPS Must be provided by contractor
Injuries of any kind are covered by UPS Serious injuries can mean loss of route/job - Injuries are complete responsibility of the contractor
Generous vacation policy No paid vacation. Must pay for temporary route coverage
Uniforms provided and laundered No uniforms or laundering provided
 
For more information, contact:
 
  • UPS Public Relations
    404-828-7123