What is YOUR plan FEDEX?

[59 Dano]

Why? We already get deliveries with appointments and evening delivery. What's the difference.

You have to ask???

Give me a handful of deliveries that need to be done by 10:30, I'll figure it out. In the fairy tail of a Ground/express merge Ground has a better fleet for incorporating the express division. No way express trucks could handle the freight we move. Same reason Ground can absorb HD better than the other way around. Bigger trucks better flexibility.

If that were the case, Ground would already be handling it.

 

[MAKAVELI]

You have to ask???



If that were the case, Ground would already be handling it.

This is about the ONLY thing I can agree with you on.

 

[It will be fine]

You have to ask???



If that were the case, Ground would already be handling it.

So no actual answer on why there needs to be a greater level of control to deliver express volume?

 

[Route 66]

The username is great. I asked Mike Hunt, and he loved it.

Hugh G. Rekshon concurs.

 

[vantexan]

Why? We already get deliveries with appointments and evening delivery. What's the difference. Give me a handful of deliveries that need to be done by 10:30, I'll figure it out. In the fairy tail of a Ground/express merge Ground has a better fleet for incorporating the express division. No way express trucks could handle the freight we move. Same reason Ground can absorb HD better than the other way around. Bigger trucks better flexibility.

How about a dedicated Express pick-up crew to satisfy FAA rules regarding having regular employees handle freight until it reaches destination ramp, then have contractors deliver it? Amazon starts it's own airline/delivery, FedEx downsizes jets to save money and lays off enough Express couriers to just do pickups and maybe First Overnight deliveries. Everything that can be trucked will be.

 

[MAKAVELI]

So no actual answer on why there needs to be a greater level of control to deliver express volume?

Time sensitive shipments. That pretty much says it all. Customers ship ground because it's cheap and not time sensitive. The level of micromanagement in Express has reached ludicrous levels, all in the name of squeezing as much profit as humanly possible. The problem is all this micromanagement is having a negative effect on profitability, but Memphis is too blind to see it.

 

[59 Dano]

So no actual answer on why there needs to be a greater level of control to deliver express volume?

Go ask DHL/Airborne Express why it flopped with the contractor model. Then go ask UPS why it works so well without it.

UPS doesn't have that gap between operations management and the drivers. UPS doesn't have contractors whose agenda is to make as much money as they can and whose obligation is to meet the minimum expectations of the contract with Ground (or DHL, or Airborne Express). With the costs incurred and the revenues that can be lost in the time sensitive package business, the operation has to have control of those trucks and the people driving them.

 

[overflowed]

Go ask DHL/Airborne Express why it flopped with the contractor model. Then go ask UPS why it works so well without it.

UPS doesn't have that gap between operations management and the drivers. UPS doesn't have contractors whose agenda is to make as much money as they can and whose obligation is to meet the minimum expectations of the contract with Ground (or DHL, or Airborne Express). With the costs incurred and the revenues that can be lost in the time sensitive package business, the operation has to have control of those trucks and the people driving them.

I'm in agreement with SPH, first time I'm in agreement with you. Strange times.

 

[MrFedEx]

Go ask DHL/Airborne Express why it flopped with the contractor model. Then go ask UPS why it works so well without it.

UPS doesn't have that gap between operations management and the drivers. UPS doesn't have contractors whose agenda is to make as much money as they can and whose obligation is to meet the minimum expectations of the contract with Ground (or DHL, or Airborne Express). With the costs incurred and the revenues that can be lost in the time sensitive package business, the operation has to have control of those trucks and the people driving them.

UPS gets incredible productivity from it's workers and runs a ruthlessly efficient operation. For decades, they kept their old, surplus vehicles around for Peak, so even in the 90's, it wasn't uncommon to see a package car from the 1950's on-road. The basic body lasted for what, 30 years? And the basic chassis was a Ford or Chev with a straight-six and manual transmission. Simple, but effective.

They also lead in technology. The roll-out customer for the then-new 767 freighter was UPS, and in typical UPS fashion, it was a no-frills airplane, built for profit. Same with their tractors. Basic, but fuel-efficient and kept until the wheels came off.

They retain skilled, productive workers because they pay excellent wages and have a great retirement and benefits package. The average UPS driver has a stop count that would be the envy of any FedEx manager, and UPS routes are generally very tight, adding to the efficiency factor.

In short, they have control over every aspect of their operation, and their leadership actually knows how to run the organization. In spite of high labor costs, their business model works quite well.

 

[It will be fine]

Time sensitive shipments. That pretty much says it all. Customers ship ground because it's cheap and not time sensitive. The level of micromanagement in Express has reached ludicrous levels, all in the name of squeezing as much profit as humanly possible. The problem is all this micromanagement is having a negative effect on profitability, but Memphis is too blind to see it.

So micromanagement is bad, but it's the only way to successfully deliver time sensitive shipments? Van's the only one who brought up something reasonable with FAA regulations demanding employee handling. You and Dano are just saying, "It's too hard, contractors couldn't deliver boxes before 10:30." That's just nonsense. A proper incentive structure would solve any issues. Lose $1K for any lates, we won't have lates. Money talks, we could get better results than folks on here that say, "Work slowly, paid by the hour, lates aren't my problem if management sends me out with too many stops."

 

[bacha29]

Sph. 59DANO,Mr.Fedex together have put the matter to rest. IC/ISP"s who hope that their salvation is going to come by means of getting the Xpress volume are going to be dissapointed. UPS is the model of corporate efficiency and cheap wage fedex contractors are at least for the time being not going to gain access to it. THe high level of command and control needed in the time sensitive business is something no contractor would tolerate and would not give the contractor enough autonomy to meet the legal definition of a independent contractor.

 

[vantexan]

Sph. 59DANO,Mr.Fedex together have put the matter to rest. IC/ISP"s who hope that their salvation is going to come by means of getting the Xpress volume are going to be dissapointed. UPS is the model of corporate efficiency and cheap wage fedex contractors are at least for the time being not going to gain access to it. THe high level of command and control needed in the time sensitive business is something no contractor would tolerate and would not give the contractor enough autonomy to meet the legal definition of a independent contractor.

FedEx could still have Express only deliver Priority shipments, give everything else to Ground, and greatly reduce it's regular employee workforce. Probably won't happen now that fuel prices are much lower. Ground might account for most of the profit, but Express will be much more profitable with lower fuel costs. That's not going away soon, too much oil out there.

 

[MAKAVELI]

So micromanagement is bad, but it's the only way to successfully deliver time sensitive shipments? Van's the only one who brought up something reasonable with FAA regulations demanding employee handling. You and Dano are just saying, "It's too hard, contractors couldn't deliver boxes before 10:30." That's just nonsense. A proper incentive structure would solve any issues. Lose $1K for any lates, we won't have lates. Money talks, we could get better results than folks on here that say, "Work slowly, paid by the hour, lates aren't my problem if management sends me out with too many stops."

I never said it was too hard. My point is with the level of control, FAA regulations and RLA exemption, Grounds contractor model is not feasible for the Express side. But dream on if you wish.

 

[STFXG]

I never said it was too hard. My point is with the level of control, FAA regulations and RLA exemption, Grounds contractor model is not feasible for the Express side. But dream on if you wish.

Which FAA regulations do you speak of?

Contractors wouldn't need to worry about unions so the RLA wouldn't really matter.

 

[MrFedEx]

Which FAA regulations do you speak of?

Contractors wouldn't need to worry about unions so the RLA wouldn't really matter.

FedEx gets all of it's anti-union language and protection because it is classified as an airline, even though it's really a package delivery service that has an airline component. Both UPS and FedEx are systems integrators, meaning basically that they offer a full range of services to the customer. The whole RLA house of cards is based on the airline definition.

 

[STFXG]

FedEx gets all of it's anti-union language and protection because it is classified as an airline, even though it's really a package delivery service that has an airline component. Both UPS and FedEx are systems integrators, meaning basically that they offer a full range of services to the customer. The whole RLA house of cards is based on the airline definition.

Right. But that wouldn't stop the switch to a contractor model from being possible. (Though that will never happen imo).

 

[It will be fine]

FedEx gets all of it's anti-union language and protection because it is classified as an airline, even though it's really a package delivery service that has an airline component. Both UPS and FedEx are systems integrators, meaning basically that they offer a full range of services to the customer. The whole RLA house of cards is based on the airline definition.

Picture this scenario. Express only does priority delivery and pickup service. They contract out the remainder of their delivery volume utilizing the existing Ground network. Express can eliminate all full time positions and only have part-time am and pm couriers. They can dump benefits for part-timers. Their main focus would then be the airline not the whole delivery network. It could strengthen their argument.
It could be more in line with what Amazon is contemplating. Focus on the high priority, high revenue shipments and dump the rest off on low cost options.
I doubt anything like this would happen, but they'll squeeze every penny they can out of the Ground network.

 

[bacha29]

Picture this scenario. Express only does priority delivery and pickup service. They contract out the remainder of their delivery volume utilizing the existing Ground network. Express can eliminate all full time positions and only have part-time am and pm couriers. They can dump benefits for part-timers. Their main focus would then be the airline not the whole delivery network. It could strengthen their argument.
It could be more in line with what Amazon is contemplating. Focus on the high priority, high revenue shipments and dump the rest off on low cost options.
I doubt anything like this would happen, but they'll squeeze every penny they can out of the Ground network.

 

[bacha29]

As has been mentioned Xpress is under RLA and Ground under Taft-Hartley. Until they is a new board majority committed to merger and consolidation, Xpress and Ground will remain seperate and given as the numbers indicate Xpress shipping is becoming a business that's too expensive to operate would you as a ground pounder actually want that business?

 

[It will be fine]

As has been mentioned Xpress is under RLA and Ground under Taft-Hartley. Until they is a new board majority committed to merger and consolidation, Xpress and Ground will remain seperate and given as the numbers indicate Xpress shipping is becoming a business that's too expensive to operate would you as a ground pounder actually want that business?

Do I want it? Not really. Would I take it? Don't see why not.