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Fedex getting "grounded"?
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<blockquote data-quote="paganpink" data-source="post: 311618" data-attributes="member: 5419"><p>According to the recent yearly feedback meeting we have been beating big purple like a drum as far as taking volume from them. A graph of the last few years shows mirror opposite trends with their volume plummeting and ours spiking upward for at least the last year and a half. Plus, we are both taking volume from DHL who appaers to be on its last legs after losing about $900 million or so in the US market. Perhaps they thought that they could run it like they do their monopoly class mail in Germany where they charge about .65 cents for a letter in a country the size of Texas. And their prices aren't the worst of their problems at DHL- their service is. They had an on time record in the 70% range a few years ago! That's a level that even our post office beats handily with the plodding improvements they have made, not the least of which is using multi billion dollar contracts with UPS and FDX to transport the mail for them before they break it out and deliver it. We are in an industry where even the ground packages are well over 99% on time with the industry leaders, and the next day air sector is 99.9% plus (depending mainly on weather) as UPS and FDX compete to become better and better. Much of the last small percentage point of reliability improved quickly after we started guaranteeing our on time deliveries forcing us to "get better or get gone". A stroke of genius on UPS 's part I believe. Once the ground was offered the same thing it also had an impact on reliability even though there were people saying that we would lose our rear ends if we dared to put guarantees on such a lowly thing as a ground parcel! In both cases UPS led the way with Fedex following soon after. FDX ( their ticker symbol) is still less reliable with ground with a major factor being coverage for drivers that are sick or "go down" on area and can't finish their routes. Although FDX has brought much needed improvement over the old RPS policies which oftentimes saw loads sitting all day if a driver was sick (since it was mainly considered the drivers responsibility to get his area covered) they had still better hope their workforce doesn't continue organizing, as some of their buildings have voted to do recently, because their cost advantage is the only thing making them competitive. No matter how a UPS person feels about how they are treated they are paid much better and have many things such as overtime after 8/day rather than 40/week that ensure even greater money than a comparable FDX air driver. FDX ground by contrast doesn't pay squat, and you have 0 benefits including having to pay for your own social security and not even being covered by workers compensation as a so called subcontractor.</p></blockquote><p></p>
[QUOTE="paganpink, post: 311618, member: 5419"] According to the recent yearly feedback meeting we have been beating big purple like a drum as far as taking volume from them. A graph of the last few years shows mirror opposite trends with their volume plummeting and ours spiking upward for at least the last year and a half. Plus, we are both taking volume from DHL who appaers to be on its last legs after losing about $900 million or so in the US market. Perhaps they thought that they could run it like they do their monopoly class mail in Germany where they charge about .65 cents for a letter in a country the size of Texas. And their prices aren't the worst of their problems at DHL- their service is. They had an on time record in the 70% range a few years ago! That's a level that even our post office beats handily with the plodding improvements they have made, not the least of which is using multi billion dollar contracts with UPS and FDX to transport the mail for them before they break it out and deliver it. We are in an industry where even the ground packages are well over 99% on time with the industry leaders, and the next day air sector is 99.9% plus (depending mainly on weather) as UPS and FDX compete to become better and better. Much of the last small percentage point of reliability improved quickly after we started guaranteeing our on time deliveries forcing us to "get better or get gone". A stroke of genius on UPS 's part I believe. Once the ground was offered the same thing it also had an impact on reliability even though there were people saying that we would lose our rear ends if we dared to put guarantees on such a lowly thing as a ground parcel! In both cases UPS led the way with Fedex following soon after. FDX ( their ticker symbol) is still less reliable with ground with a major factor being coverage for drivers that are sick or "go down" on area and can't finish their routes. Although FDX has brought much needed improvement over the old RPS policies which oftentimes saw loads sitting all day if a driver was sick (since it was mainly considered the drivers responsibility to get his area covered) they had still better hope their workforce doesn't continue organizing, as some of their buildings have voted to do recently, because their cost advantage is the only thing making them competitive. No matter how a UPS person feels about how they are treated they are paid much better and have many things such as overtime after 8/day rather than 40/week that ensure even greater money than a comparable FDX air driver. FDX ground by contrast doesn't pay squat, and you have 0 benefits including having to pay for your own social security and not even being covered by workers compensation as a so called subcontractor. [/QUOTE]
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