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FedEx Discussions
NOT STOP COST, UNIT OF LABOR
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<blockquote data-quote="Exec32" data-source="post: 2251273" data-attributes="member: 56206"><p>From what I hear you must know how much it cost for your company to do one stop to determine your negotiation range. FedEx has designed a process of negotiating on a premise that the STOP is the bases of evaluation. If this is the case then why does FedEx have so many clauses and addendums in the contract that have nothing to do with the act of doing a STOP. </p><p>DETERMINING Your unit of labor is a more precise measurement of cost. This can capture all expenses in the performance of delivery. For me to compete within my industry and provide the level of service the contract demands, I will need to charge 36 dollars per unit hour of labor. This can capture items like HR, QUALITY CONTROLL, CUSTOMER SUPPORT, RETENTION, COURIER DELIVERY, ACCOUNTING, ADMINISTRATIVE, OVERTIME, any other currently uncompensated or undervalued services. This of course is based on volume, or what FedEx likes to call scale. If you determine units of labor it will also capture growth and resource utilization.</p><p>MY POINT IS, I informed the TM, " the only thing I want from you is the right package on the right truck with the right address" and I will do the rest, thus creating a real independent relationship, however this will cost you more. The only remaining thing for me to become truly independent is to service more than just one customer, which is now just FEDEX. The viability of their model relies on this. Remove CONTROLL and pay for all services, (FedEx) be a "logistics" company only, and let me handle the delivery. GET IT!</p></blockquote><p></p>
[QUOTE="Exec32, post: 2251273, member: 56206"] From what I hear you must know how much it cost for your company to do one stop to determine your negotiation range. FedEx has designed a process of negotiating on a premise that the STOP is the bases of evaluation. If this is the case then why does FedEx have so many clauses and addendums in the contract that have nothing to do with the act of doing a STOP. DETERMINING Your unit of labor is a more precise measurement of cost. This can capture all expenses in the performance of delivery. For me to compete within my industry and provide the level of service the contract demands, I will need to charge 36 dollars per unit hour of labor. This can capture items like HR, QUALITY CONTROLL, CUSTOMER SUPPORT, RETENTION, COURIER DELIVERY, ACCOUNTING, ADMINISTRATIVE, OVERTIME, any other currently uncompensated or undervalued services. This of course is based on volume, or what FedEx likes to call scale. If you determine units of labor it will also capture growth and resource utilization. MY POINT IS, I informed the TM, " the only thing I want from you is the right package on the right truck with the right address" and I will do the rest, thus creating a real independent relationship, however this will cost you more. The only remaining thing for me to become truly independent is to service more than just one customer, which is now just FEDEX. The viability of their model relies on this. Remove CONTROLL and pay for all services, (FedEx) be a "logistics" company only, and let me handle the delivery. GET IT! [/QUOTE]
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