How does UPS Mail Innovations Work?

[02ranger]

I ordered something from thinkgeek.com over the weekend and chose economy shipping because, honestly, I don't care when it arrives. This resulted in it shipping via UPS Mail Innovations. I've read a little on it and from what I've read, the item ships via UPS until it makes it to the destination town, then is transferred to the post office for final delivery. I'm a little confused, though. It started in Urbancrest, OH and is going to Salisbury, NC. My tracking says they received the package in OH but then the last update says "Package transferred to dest MI facility" in Urbancrest, OH. From what I've been able to find, that means it's been transferred to the local Post Office. How does this make sense if it's supposed to go to NC?

I know there are LOTS of complaint threads about shipping and I've even made one myself, but that's not what this is. I'm not too concerned about how long it takes or the price, I just don't understand the UPS Mail Innovations system and I'm hoping somebody here can explain it.

Thanks!!

 

[Soundmanred]

Yes, that's what happens.
Don't concern yourself with what happens in between, you'll go crazy wondering why they do things the way they do.

 

[02ranger]

Yes, that's what happens.
Don't concern yourself with what happens in between, you'll go crazy wondering why they do things the way they do.

Do you think I'm interpreting the part about the dest MI facility right meaning it is/was at the OH Post Office?

 

[dbk]

Like Fedex Smartpost AFAIK I've had zero issues with either one

 

[02ranger]

Like Fedex Smartpost AFAIK I've had zero issues with either one

I feel sure it'll get to me, I'm not really worried, just curious as to how it works. I've been thinking about it and I think I may have misunderstood the last update. I took it to mean the MI Facility it mentioned was in Urbancrest OH because that was the location listed. I think what it really means is it's being transferred to the "destination" MI Facility in NC, and it was scanned for that trip in Urbancrest........

 

[ElFenix]

UPS takes the profitable (usually long-haul) portion of the route and dumps the unprofitable (usually short-haul) portion of the route on the USPS.

 

[02ranger]

UPS takes the profitable (usually long-haul) portion of the route and dumps the unprofitable (usually short-haul) portion of the route on the USPS.

That's kinda what I was thinking. So in the example of my package from Ohio to Salisbury NC, most likely UPS is taking it from Ohio to a major sorting facility here like Greensboro or Charlotte, then trading it off to USPS to go the rest of the way?

How does that wind up being cheaper? I understand why it's cheaper for UPS, because that makes fewer packages on the truck for delivery, but how does it wind up being a cheaper option for the consumer and still profitable for both UPS and USPS?

 

[cubby1223]

That's still better than DHL. Took a 5 day standard route (no delays, no mishandling) for a package to arrive at my door... from a starting point less than an hour's drive from my house. I ordered from that company despite their prices being a little higher, because being within an hour's drive I figured package will arrive the next day, two at the most... it was an item I needed rushed, and DHL did not rush...


UPS is using a system of calculations that works best in most cases, but may not be optimal in others. Your package will arrive. But the main thing is UPS chose the route that costs them the least amount of cash.

 

[02ranger]

That's still better than DHL. Took a 5 day standard route (no delays, no mishandling) for a package to arrive at my door... from a starting point less than an hour's drive from my house. I ordered from that company despite their prices being a little higher, because being within an hour's drive I figured package will arrive the next day, two at the most... it was an item I needed rushed, and DHL did not rush...


UPS is using a system of calculations that works best in most cases, but may not be optimal in others. Your package will arrive. But the main thing is UPS chose the route that costs them the least amount of cash.

I have no doubt it'll arrive, and I'm not too concerned about when or even the route it takes. If I was really worried about the timing I'd have paid for a faster shipping method. I'm just genuinely curious about how all this works. I can't quite see how it's a cheaper option and yet still profitable for UPS and USPS. I kinda get why it works for UPS because they don't have to pay to deliver it to the house, but how is it better for USPS and how is it profitable for them both at a lower price? I'm also kinda curious about where in the shipping process it gets transferred to the post office. Pretty much I'm just curious.

As a side note, tracking on UPS MI really sucks. lol

 

[cubby1223]

I can't quite see how it's a cheaper option and yet still profitable for UPS and USPS.

Who said USPS is profiting from the shipment?

USPS makes daily runs to most people's homes, that's why having an extra package tag along is not much of an increased expense, versus UPS who has to make special trips for single packages.

USPS sets their rates for weight, size, and zip-code to zip-code. UPS takes the post office's rate if dropped off in North Carolina versus Ohio, and if the difference in prices is calculated to be cheaper than UPS carrying the package to NC, they hand it off in Ohio.

UPS has main hubs that transport the bulk of packages, then they spread out from there. UPS's hub system may not be optimized for an Ohio to North Carolina run, instead optimized for runs going a different direction.

 

[ElFenix]

That's kinda what I was thinking. So in the example of my package from Ohio to Salisbury NC, most likely UPS is taking it from Ohio to a major sorting facility here like Greensboro or Charlotte, then trading it off to USPS to go the rest of the way?

How does that wind up being cheaper? I understand why it's cheaper for UPS, because that makes fewer packages on the truck for delivery, but how does it wind up being a cheaper option for the consumer and still profitable for both UPS and USPS?

any 1 additional piece of mail delivery costs USPS practically 0 because they're already going to your house 6 days a week. so long as it's just using excess capacity in the network of UPS and USPS, it can be a less expensive than just UPS and faster than plain USPS.

note: the second doesn't apply when DHL is used.

 

[02ranger]

Who said USPS is profiting from the shipment?

USPS makes daily runs to most people's homes, that's why having an extra package tag along is not much of an increased expense, versus UPS who has to make special trips for single packages.

USPS sets their rates for weight, size, and zip-code to zip-code. UPS takes the post office's rate if dropped off in North Carolina versus Ohio, and if the difference in prices is calculated to be cheaper than UPS carrying the package to NC, they hand it off in Ohio.

UPS has main hubs that transport the bulk of packages, then they spread out from there. UPS's hub system may not be optimized for an Ohio to North Carolina run, instead optimized for runs going a different direction.

I just kinda assumed they profitted, or at the very least broke even, on it. Otherwise why do it? That does make sense about USPS making daily runs to everybody's house, meaning it's easier for them to deliver than UPS. As dumb as I know it sounds, I hadn't really considered that. lol

any 1 additional piece of mail delivery costs USPS practically 0 because they're already going to your house 6 days a week. so long as it's just using excess capacity in the network of UPS and USPS, it can be a less expensive than just UPS and faster than plain USPS.

note: the second doesn't apply when DHL is used.

I got an update on my package today. It says it has arrived at Dest MI Facility in Raleigh, NC. It took almost 24 hours from the Urbancrest OH to Raleigh NC update, which is WAY longer than that drive takes, so between that and what I found on Google, I thought it meant it went into the Postal Service at Urbancrest, which is one thing that really confused me. Seeing it in Raleigh makes much more sense now. I'm guessing that they'll transfer it to the Post Office in Raleigh to come to Salisbury for delivery, but it's possible UPS will bring it to their warehouse here in Salisbury and then transfer it to USPS.

Anyway, the system makes more sense to me now. I can definitely see how it benefits UPS and sorta see how it works for USPS. Like I said before, I'm not complaining, I just didn't really understand it. Thanks for all the responses!

Edit: Just got another update that says "Shipment Info Received By Post Office" in Charlotte, NC.....

 

[kranky]

I always wondered if the "Innovation" was that trying to collect on an insured package that was lost of damaged gave both organizations the opportunity to engage in a finger-pointing battle royale until you gave up and went away.

 

[02ranger]

I always wondered if the "Innovation" was that trying to collect on an insured package that was lost of damaged gave both organizations the opportunity to engage in a finger-pointing battle royale until you gave up and went away.

Yeah, I really don't see much to call "innovative" in this shipping method, but I guess it works ok. Maybe all the good names were already taken?

 

[PastTense]

Daily runs to everyone's house? Do we have someone acquainted with USPS who can respond to this. I was under the impression that delivery methods vary between a postal carrier driving a truck (and could thus carrier packages) to a postal carrier walking by each house--so there would be no room on his cart for packages and the USPS would be sending out separate trucks with the packages...