Dell drops UPS and will use rivals
Dell has stopped relying on UPS, the world’s biggest package deliverer, to handle its box deliveries in the United States.
Instead, Dell is turning to UPS shipping rivals DHL and FedEx. The move cuts into Sandy Springs-based UPS’ dealings with one of its biggest customers. But it is a boost for DHL’s efforts to grow its presence in the U.S.
UPS spokesman Norman Black said Dell and UPS “were simply unable to reach an agreement for pricing for renewal of this particular contract.”
None of the companies involved would disclose the dollar value of the deals. Dell shipped 20.5 million personal computers for the U.S. market last year, according to IDC, which tracks data about the technology industry. That represented just over half Dell’s worldwide shipment of PCs.
But Dell’s market share has been slipping, and it has been looking for ways to streamline its operations and shave costs for everything from manufacturing to logistics.
UPS had been the carrier for virtually all of Dell’s U.S. package deliveries, Black said. While that ended effective April 1, UPS remains Dell’s primary package deliverer outside the U.S. and will continue to handle logistics issues for the computer maker, he said.
He declined to say where Dell had ranked among UPS’ largest clients. He said the reduction in business between the companies is not a material event from a regulatory financial accounting standpoint.
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