A small nugget of what is sure to be many changes in the coming weeks

Discussion in 'FedEx Discussions' started by northeast swing driver, May 30, 2012.

  1. Heard this one today

    Express Saver is gone within the next few weeks. Will be shifted over to Ground.

    Also heard this one today. Please do not leave any ground pkgs in drop boxes. If they are in there take them out and bring back to the station.:rofl:

    Thats a good one. Hope they don't hold there breath waiting for me to handle grounds pkgs. Aint happening

    Give the ex cons and grifters who work at ground the combos of the boxes and let them get there own crap.

    Better Hold on. Going to be a bumpy next few weeks.
  2. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    We all know customers are stupid---they see a FedEx drop box and they don't realize that it is supposed to be for Express packages only---and you want to penalize them for their stupidity?? Do you have any idea how many non-UPS pkgs I get in my 5 drop boxes? I take them along with the UPS pkgs and drop them off at the MBE store. If the Express driver has already made the pickup I will bring any Express packages to their depot as it is on the way back to the center.

    Do the right thing for the customer--pick up the ground and bring them back to your depot.
  3. UpStater i like you

    Here is the difference between me and you

    You are compensated properly for the work you do. Therefore you do the right thing

    I am treated like a kindergartner and paid like a day laborer. Therefore freddy gets what he pays for. The customer is unfortunately in the crossfire of that
  4. CJinx

    CJinx Well-Known Member

    You shouldn't let the customer suffer because you have a problem with the company.
  5. thedownhillEXPRESS

    thedownhillEXPRESS Well-Known Member

    Been a lurker for awhile, can't sit by silently anymore and read all the purple cool aid drinkers think all is fine.
    I'm a 14 year employee watching my career, along with my co-workers, go down the drain because of corporate greed.
    Unions don't have a chance against the big business cartels like Fred and the Koch bros anymore, and its the slow decimation of the middle class of America because of it....
    Bye bye express saver....

    Last edited: May 30, 2012
  6. thedownhillEXPRESS

    thedownhillEXPRESS Well-Known Member

    I never thought my job could be "outsorced", but it has been, but not to cheaper and less educated foreigners, but cheaper and less educated Americans.
    Purple drinkers will say its the free market, or capitalism, but it is not when a super rich and powerful person/corporation spends tens of millions of dollars to buy legislation that stacks the deck in their favor, legislation that also destroyed any chance of my constitutional right to freely associate, legislation that somehow makes it possible, in America, to buy another company like ground, shift your business over to cheaper,impossible to unionize uninsured individuals , and then somehow have it that they aren't even considered employees!
    Its middle class job destruction rather, then using your resources to advance a greater good.
    Its becoming a faster race to the bottom.
    I guess most Americans, and fedexers, are fine with the future of basically indentured servitude...
    Last edited: May 30, 2012
  7. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    "Doing the right thing" does not have a $ attached to it.
  8. big idea

    big idea Member

    Yes it does or fed ex would pay thier empoyees a fair wage.
  9. HomeDelivery

    HomeDelivery Well-Known Member

    yes, I already know i'm getting shafted at HD, but the customer deserves some service...

    this past Saturday as I was driving to one of my stops, a lady was tailing my package car.
    Since I scan my mirrors, I noticed that she was following me for 5 blocks until I reached my stop.
    as I shut off my vehicle, she comes up to me to pickup a Ground package.

    I ask her, is this for Express / Air mail? "nope, it's just a return to seller"

    Is this for UPS or FedEx? "does it really make a difference?" yes! But, she didn't want to drive all the way to a closed ups store to drop off a returns shoe box...

    So, to get her out of my hair, I accepted this UPS Ground box & thought that the nearby UPS terminal will be open when I return on a Saturday (oops not after 5pm)

    Since she said it's no rush; i had to wait until Tues for a local ups store to be open to dump it on them. I tried to stuff it in one of those drop boxes during the drive home, but it wouldn't fit.

    also, I won't accept Express packages from customers on the street unless it's not an urgent Air Mail item & didn't care when it will arrive to the destination.
  10. 59 Dano

    59 Dano Well-Known Member

    So when us typical American consumers try to find cheaper comparable alternatives to the goods and services that we normally purchase, does that make us evil? Or does that only count when it comes to purchasing hours of labor?
  11. vantexan

    vantexan Well-Known Member

    I remember an oncall on a Saturday in the early 90's in southern Texas, pkg addressed to Houston, about 300 miles away. I asked the lady if she wanted Monday morning delivery. She almost started crying as she said "you mean you can't deliver it this afternoon"? Important report she was late on. I've heard some amazing remarks by customers over the years. Several have acted surprised when they learned we didn't immediately run their pkg out to the airport to put on the next outbound plane. Couldn't get to a customer during a tropical storm in southern Mississippi. He got my phone number, called me at home and threatened to alert the national media and file a lawsuit against me and FedEx if I didn't bring his pkg. Called mgr who sent pkg by taxi 80+ miles one way to deliver it. Taxi driver told mgr next day that guy made him stand there and witness him checking contents. Counted out $50,000 in cash from letter! That's the thing about FedEx. Many of our customers have serious money and they are serious kooks. I try to give good service to the elderly needing their meds, but anyone else it really depends on the person.
  12. vantexan

    vantexan Well-Known Member

    We're being exploited by your type so much we have no choice but to seek out affordable alternatives. Vicious cycle.
  13. 59 Dano

    59 Dano Well-Known Member

    So you'll only make the effort to increase your purchasing power when you feel you have no other options? Your problem ain't your *pay, buddy. ;)

    All kidding aside (well, 48% of it aside), your actor-observer bias is showing.
  14. vantexan

    vantexan Well-Known Member

    Yeah, let's not reward people for working hard. Only give them extra for dancing on the end of a string. Two tiered system, and the mid-range tier is being exploited. And ok, I'll bite. What's an actor-observer bias?
  15. Ricochet1a

    Ricochet1a New Member

    Should've probably used "self-serving bias" as a descriptor for your arguments over the months/years....

    Essentially actor-observer bias is when someone (the actor) attempts to explain their motivations/actions with one set of reasons, then applies a different set of motivations/actions for others (observing mode) performing essentially the same thing.

    It is a "fancy" way (in debate) of trying to state (in a manner of speaking) that you are "speaking out of both sides of your mouth". In this case, you use one set of motivations to explain your behavior/situation while using a completely different set of explanations to characterize the actions of others in essentially the same situation you are experiencing.

    Self-serving bias is a much better "label" to have applied to your arguments.
  16. vantexan

    vantexan Well-Known Member

    OK, Sigmund, I'm not perfect, but neither are you. There, I've applied an equal explanation to both of us. :)
  17. bbsam

    bbsam Moderator Staff Member

    How much volume is Express Saver?
  18. Ricochet1a

    Ricochet1a New Member

    That is the current $64,000 question...

    The problem with getting a good figure is two fold.

    First, Express combines all non-overnight volume together in its public financial statements. So there is the difficulty in splitting out Express Saver from 2nd Day.

    Second, one just can't look at revenue as an indicator/replacement for volume data - since revenue on ES volume (for a given piece) is markedly different from potential revenue for the same piece had it been shipped 2nd Day.

    Going way back, Express did ES more as a way for customers to save money on non-urgent shipments and to fill space on underutilized linehaul - in otherwords, ES was a source of incremental revenue enhancement without any real additional variable cost incurring as a result.

    Well... Express is squeezing out all low revenue generating line haul capacity right now (this is confirmed from my sources). Express Saver's days at Express are literally numbered right now. FedEx Corp fully expects all of this volume to be shifted over to Ground by the customers once an announcement regarding the ending of ES service is made. The potential margins for FedEx Corp in shifting this volume over to Ground are greater, compared to maintaining ES service with Express as an option for customers. Express has resorted to "holding" ES volume at stations when it arrives in time for delivery on the 2nd day - just to prevent customers from utilizing ES to get around from paying 2nd Day prices.

    I'd have to review the financials of FedEx, but I don't believe that current Express ES volume would equate to that "28%" increase (remember 900,000 pcs equating to 28%) that you wrote of. It would be convenient to be able to match up a 28% increase in Ground volume (900,000 pcs/day) with a similar reduction in piece count/day from ES on the Express side, but I can't do that as of yet. I don't believe that ES volume is that high. If I had to take a guess at this instant, I'd state maybe 300,000 pcs/day through the Express system are ES, but that is just a guess based off what I know in my head regarding overall volume and ratios of the various service levels of Express.

    I do know a relatively large reorganization is underway at Express at this moment. They are going to be rolling it out progressively over the next few months. A large part of it involves "right sizing" the line haul capability to better match FUTURE expectations of volume moving through the Express system. Getting the ES volume out of the Express system and having customers move it over to Ground (on their own) is a part of that right sizing.

    There is only a small part of volume that cannot be moved by Ground within 3 days to its destination (20% is the figure given). FedEx is thinking that for those customers, they can live with a reduction in price for their shipment movement (along with an additional day, rarely 2 additional days), or if they can't then they'll bump up to 2nd Day service. Anyway it works, FedEx is seeing a win-win for itself (increase in margin per piece moved, regardless of which system does the movement).

    The elimination of ES will affect AGFS (linehaul) much more than the stations. Most ES "tags along" with other pieces being delivered, so total stops performed by Express won't drop too much (caveat below). However, ES does tend to be rather large/heavy pieces, so the "dimentional" volume picked up/delivered by Express will drop. This is why all the Sprinters have been acquired to replace worn W700s.

    The "Cheetah" program is meeting FedEx's expectations (test markets have been favorable), so that will be another source of reduced volume for Express - shipments within a given metro area being diverted (by the customers) from Express and to Office for delivery.

    The only other shoe to drop is what will become of 2nd Day volume (delivery thereof). Given the advantageous position of FedEx right now (RLA is safely secured), my sources are seeing an incremental approach to transformation of Express and not a sudden shift. Get ES moved over to Ground, get delivery manifesting perfected, push personnel policies which will result in a gradual attrition of current wage (and even salaried) employees - get replacement employees at bottom of wage scale....

    There are some savings to be had by possessing a more efficient linehaul system (fuel efficiency, etc), but the BIG savings are going to be in labor costs. FedEx wants to squeeze an additional BILLION dollars a year in profit for Express (moving the profit margin up from around 5% to 10% of revenues for Express)- they aren't going to save a billion solely through fuel efficiency measures - they are going to get it largely though labor cost reductions.

    Between Cheetah coming on line at Office and ES being dropped by Express, there should be (by my estimations at this point) about a 20% drop in volume at Express in the next 3 years (most of that coming this summer with the dropping of ES). I'm trying to get data on whether FedEx sees a way to reducing its labor costs by 20% within Express as a result of this (if so, then this would mean a reduction of about one-third of the current full-time Courier positions into part-time positions). Rumors (I use that term deliberately) are that buyouts are to be implemented for topped-out Couriers along with early retirement incentives. I have no way to believe this is either true or not at this stage (my sources are more concerned with the impact on salaried staff positions right now).
  19. Ricochet1a

    Ricochet1a New Member

    As a side note, from Zachs (stock analysis of FDX)

    FedEx Aims for Fuel Efficient Fleet - Zacks.com

    Quoting: "It is purchasing vehicle of right-sized engines like those manufactured by Mercedes-Benz. FedEx expects that over 35% of its U.S. pick-up and delivery fleet will be equipped with 11, 000 such vehicles by end of 2013."

    End Quote....

    So just over one-third of Express delivery vehicles will be Sprinters (type vehicle) by the end of 2013 (just over a year and a half from now).

    Even the doubters should start to get the picture now.
  20. vantexan

    vantexan Well-Known Member

    I don't see why they don't go with Ford Transit Connects for many extended rts. More fuel efficient, gas is cheaper, vehicle costs considerably less. Or hopefully go with small diesel Fiat Doblos that are being badged as Rams for 2013.