10/27/2005

Aggressive Initiatives Save Fuel At UPS Airlines

UPS has the world's ninth largest fleet of planes. Can you imagine the fuel bill they run up? New initiatives have been implemented to help them reduce fuel costs by up to one million dollars a month. I think that this will be the trend in most companies. There is no way around the price of an individual gallon of fuel but if you can become more efficient you can save money. The management of UPS measures everything. This is just another improvement they think needs to be done and will make them even more competitive in the shipping world.

1 comment:

Dr. Tufte said...

-1 on Elijah's comment for poor capitalization.

This is precisely what we expect to see in this situation.

My guess is that UPS does not buy in bulk. It's more likely that they sign forward contract for delivery at a future date at a price that is fixed today.