Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
The Competition
FedEx Discussions
Ground taking over
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="bacha29" data-source="post: 5532398" data-attributes="member: 58386"><p>The message Wall Street gave to the company is clear and concise. Reduce both final mile and corporate overhead costs with the objective being improved margins and the ability to sustain those margins throughout the upcoming recession. </p><p></p><p>You're obviously quite excited to get to haul air box given that by your own admission a big mileage day for your trucks is 30 miles. Even despite that uncommon advantage there is no guarantee that you'll make money hauling air box. However for the guy out in rural America whose daily mileage can be upwards of 10 times what yours is he will likely have to leave assets at the terminal to wait for the air box to finally arrive then have a very small window to haul a very small load over a very long distance.</p><p></p><p>Contractors are already selling trucks and downsizing just to raise cash and cut capacity. It's quite obvious that they don't see air box as a solution to their problems but will only serve to compound and accelerate a deteriorating economic situation.</p><p></p><p>Rest assured the practice of taking an air box and wash it through the Express corporate machine and then pass it off to Ground who will then wash it again through the Ground corporate machine will not achieve that stated goal of cutting very big numbers out of the operating cost side of the balance sheet.</p><p></p><p>I believe that Raj and Fat Freddy greatly dislike having to make this move given the obvious risks and dangers involved especially given that it doesn't take an MBA to see that Ground completely lacks the uniform design structure needed to handle air box but I don't think they have much of a choice.</p></blockquote><p></p>
[QUOTE="bacha29, post: 5532398, member: 58386"] The message Wall Street gave to the company is clear and concise. Reduce both final mile and corporate overhead costs with the objective being improved margins and the ability to sustain those margins throughout the upcoming recession. You're obviously quite excited to get to haul air box given that by your own admission a big mileage day for your trucks is 30 miles. Even despite that uncommon advantage there is no guarantee that you'll make money hauling air box. However for the guy out in rural America whose daily mileage can be upwards of 10 times what yours is he will likely have to leave assets at the terminal to wait for the air box to finally arrive then have a very small window to haul a very small load over a very long distance. Contractors are already selling trucks and downsizing just to raise cash and cut capacity. It's quite obvious that they don't see air box as a solution to their problems but will only serve to compound and accelerate a deteriorating economic situation. Rest assured the practice of taking an air box and wash it through the Express corporate machine and then pass it off to Ground who will then wash it again through the Ground corporate machine will not achieve that stated goal of cutting very big numbers out of the operating cost side of the balance sheet. I believe that Raj and Fat Freddy greatly dislike having to make this move given the obvious risks and dangers involved especially given that it doesn't take an MBA to see that Ground completely lacks the uniform design structure needed to handle air box but I don't think they have much of a choice. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
The Competition
FedEx Discussions
Ground taking over
Top