Insights

Network Optimization: UPS Begins Negotiations with Teamsters

For months now, there has been an undercurrent of trepidation in the parcel market. Shippers everywhere have been nervously watching the clock, counting down the days until the current collective bargaining agreement between UPS and the Teamsters union expires. That deadline is rapidly approaching, and the WSJ is reporting that UPS has indeed begun negotiations with the US’s largest labor union, a move that will impact not only the 330,000 Teamsters members, but the supply chain industry as whole. 

UPS is by far the largest carrier in the parcel market, and the Teamsters union is the engine that drives the shipping giant. The last time negotiations between the two broke down, the ensuing labor strike had catastrophic effects on markets across the globe. To say outside businesses are watching the current negotiations with bated breath is an understatement. 

Any potential strike will ultimately have a massive impact on the supply chain industry, but for leaders looking to be proactive, there are in fact mitigation strategies available. While it’s true UPS is the largest parcel carrier in the US, for shippers with the proper technology in place, there are plenty of other options out there. 

Zero Down’s best-in-class Transportation Spend Management System provides numerous network optimization options, but perhaps the most powerful advantage our advanced logistics software offers is carrier flexibility. Flexibility is the first step to a resilient supply chain, and having the ability to incorporate multiple carriers into your shipping profile helps to mitigate market fluctuations, and bypass bottlenecks. Our system establishes a Net Rate Nucleus™ for your company, consolidating multiple carrier agreements and rate sheets into one easy to use platform. This allows your operations team to quickly select the lowest-cost carrier from multiple quotes, helping to maximize savings, and to keep things moving. 

It’s extremely difficult to predict the long-term effects of this negotiation, and that means that remaining flexible is the best strategy for shippers looking to gain a competitive edge. Having the ability to call upon multiple carriers not only insulates your supply chain from negative market forces, but helps to maximize your savings in the long-term. If your company is interested in a network optimization project to help build a flexible and resilient supply chain, reach out to us today, and let’s get started.

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