FedEx tries to win customers from rival United Parcel Service Inc with price cuts!

[bbsam]

Haven't been out to BFE in a while have you? Probably never.

Well bacha, step outside yourself a minute. How many stops did your lonely little route run a day? 50? 100? And over 350 grueling miles a day?

Let’s say for the sake of math it’s 100 stops and 100 pkgs. Let’s say you consistently get off 96 of those every day. That’s 4 service failures on average Fedex has to take.

But for every route like that, there are 100 routes in towns across the country delivering 160 stops and 400 pieces.

In the big picture, Fedex can eat those service failures and easily claim 99% service. The trials of BFE Delivery don’t and never will play a huge role in the company’s strategic maneuvering.

 

[BootsOnTarmac]

When Express was young the profits enabled the purchase of Ground operations. We at Express experienced a stagnant wage increase for so many years. Some carrots were tossed at us (Step Plan), but so much was lost. Pay for performance, shift differential, BZ's, turkeys, etc., are gone. I'm concerned by half empty cans flying around the country even on smaller aircraft. Thanks to the USPS for the volume, otherwise our aircraft would be near empty. I welcome any extra volume including Ground.

 

[Ou812fu]

I think what they want is full trucks and high profits. Selling 2 Day at Ground prices will do both. They can deliver far than Amazon they lose and make the same profit since Amazon had crazy discount.

But they aren’t going to scavenge everything they can out of Ground which will still have the higher return.

You can say a lot about Fedex. What you can’t say is that they are stupid business people.

See that's the problem. You and the ex think the way you have been doing business, is the right way. That not truly taking care of customers is going to bite you in the butt really good.

 

[bbsam]

See that's the problem. You and the ex think the way you have been doing business, is the right way. That not truly taking care of customers is going to bite you in the butt really good.

I understand it’s not the Mayberry way, but it is 2019.

 

[bacha29]

Well bacha, step outside yourself a minute. How many stops did your lonely little route run a day? 50? 100? And over 350 grueling miles a day?

Let’s say for the sake of math it’s 100 stops and 100 pkgs. Let’s say you consistently get off 96 of those every day. That’s 4 service failures on average Fedex has to take.

But for every route like that, there are 100 routes in towns across the country delivering 160 stops and 400 pieces.

In the big picture, Fedex can eat those service failures and easily claim 99% service. The trials of BFE Delivery don’t and never will play a huge role in the company’s strategic maneuvering.

That much you got. BFE's were and still are to a considerable extent abandoned out there. It was just a training center from entry level terminal managers ( 1 coming 1 working 1 leaving) for just a few months and gone same for the one and only salesman we had. But it's still a NATIONWIDE carrier and every zip not just the easy and lucrative ones all carriers want deserve the same level of service. And when the 2020 census comes out and if it confirms what many are saying and that is a continued migration to the urban areas the rural areas will still have to receive service and shortchanging the rural contractors will be among the worst decisions that company will have ever made.

 

[bbsam]

That much you got. BFE's were and still are to a considerable extent abandoned out there. It was just a training center from entry level terminal managers ( 1 coming 1 working 1 leaving) for just a few months and gone same for the one and only salesman we had. But it's still a NATIONWIDE carrier and every zip not just the easy and lucrative ones all carriers want deserve the same level of service. And when the 2020 census comes out and if it confirms what many are saying and that is a continued migration to the urban areas the rural areas will still have to receive service and shortchanging the rural contractors will be among the worst decisions that company will have ever made.

No bacha. All zips are not created equal.

 

[bacha29]

No bacha. All zips are not created equal.

It's only a matter of time until a box from a major and valued shipper doesn't get out to BFE and when it starts happening on a consistent basis simply because there's nobody to take it out there it's.......time to go find a carrier who can. Usually the carrier of the last resort. The good old United States Postal Service.

 

[Star B]

if it confirms what many are saying and that is a continued migration to the urban areas the rural areas will still have to receive service and shortchanging the rural contractors will be among the worst decisions that company will have ever made.

Just like baggage fees, it will take one to start the trend and everyone will follow. Imagine if staggered day delivery started again with the BFE zips after the 2020 census?

 

[Star B]

It's only a matter of time until a box from a major and valued shipper doesn't get out to BFE and when it starts happening on a consistent basis simply because there's nobody to take it out there it's.......time to go find a carrier who can. Usually the carrier of the last resort. The good old United States Postal Service.

Yeah, and the USPS would drop the BFE zips if they could, but they are legally bound to service them... so... your point?

 

[bbsam]

It's only a matter of time until a box from a major and valued shipper doesn't get out to BFE and when it starts happening on a consistent basis simply because there's nobody to take it out there it's.......time to go find a carrier who can. Usually the carrier of the last resort. The good old United States Postal Service.

Yeah. Cuz that’s never happened in the past 30 years.

 

[It will be fine]

Are you paid the same rate for SmartPost vs. Ground?

Not for long. Right now they have a density stop rate that is about $1 less for smartpost only stops that are close by where we already are. They don’t administer it well, shocking I know, so we end up getting paid full rate for most of it. The next contract they are rebranding smartpost and HD to e-commerce and will pay us the lower rate for all those stops. The only stops to be paid full rate will be Ground and that won’t last long.

 

[SmithBarney]

Well, looks like the Express hiring freeze might become a glacier. Glad I put my uniform request in when there was some money around.

Hiring Freeze? Its a Spring Thaw here, probably at least 15-20 new faces in the past 3 months alone.

 

[Fixxxer]

Hiring Freeze? Its a Spring Thaw here, probably at least 15-20 new faces in the past 3 months alone.

This. Packing the new hires in like sardines in a tin here. Don’t even bother learning their names anymore

 

[59 Dano]

Haven't been out to BFE in a while have you? Probably never.

Would you like to venture a guess as to what percentage of stops would even remotely resemble such a scenario?

 

[59 Dano]

Well bacha, step outside yourself a minute. How many stops did your lonely little route run a day? 50? 100? And over 350 grueling miles a day?

Let’s say for the sake of math it’s 100 stops and 100 pkgs. Let’s say you consistently get off 96 of those every day. That’s 4 service failures on average Fedex has to take.

But for every route like that, there are 100 routes in towns across the country delivering 160 stops and 400 pieces.

In the big picture, Fedex can eat those service failures and easily claim 99% service. The trials of BFE Delivery don’t and never will play a huge role in the company’s strategic maneuvering.

I don't think bacha realizes that BFE routes are the exception and not the rule.

 

[McFeely]

I just came in here to see if bacha mentioned jing weeds or stolen motor freight.

Carry on-

 

[Ou812fu]

I understand it’s not the Mayberry way, but it is 2019.

You might want to check this headline out.
FedEx loses $2 billion, warns of headwinds in coming year

 

[bbsam]

You might want to check this headline out.
FedEx loses $2 billion, warns of headwinds in coming year

Lol. Yes. The express model is killing itself. Been saying it for years. a WAGN.

Can’t think of a better time for Bezos to buy it.

 

[bbsam]

You might want to check this headline out.
FedEx loses $2 billion, warns of headwinds in coming year

FedEx Profits Pressured by Express Unit’s Woes

 

[Ou812fu]

FedEx Profits Pressured by Express Unit’s Woes

You seem to think it is only because of the express side of it. It translate to poor customer service. The same thing is happening with all groups. Just not as bad. Every single one had losses.