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
The Big News
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="Ricochet1a" data-source="post: 868348" data-attributes="member: 22880"><p>The shipper pays the exact same price as they do now. Ground is acting as a cartage agent for Express. There is no reason to give the customer a break just because a different color coded truck is making the final delivery. They are still getting all the "Express" service, just having the final delivery made by a Ground driver. This is why FedEx is going to do this, they get the same revenue, but reduce their cost. </p><p></p><p>Cartage agents have and are used whenever the cost for the shipper to maintain a network for final transportation to the consignee is prohibitively high. In this case, it isn't prohibitively high, merely more cost efficient to transfer the volume over to a lower overhead service provider. in this case, that lower overhead service provider just happens to be an other opco of FedEx Corporation - how convenient...</p><p></p><p>Look at that piece of propaganda you received from Fred early in the week. There isn't any direct talk of this change, but the issue of "Quality Driven Management" is behind this. The customer decides what is quality. So, if acceptable quality can be maintained, then it is the responsibility of management to slash operating costs where ever possible. Having a Ground driver make the final "movement" of the 2nd day volume does indeed cut costs for FedEx Corporation while maintaining minimum acceptable quality.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 868348, member: 22880"] The shipper pays the exact same price as they do now. Ground is acting as a cartage agent for Express. There is no reason to give the customer a break just because a different color coded truck is making the final delivery. They are still getting all the "Express" service, just having the final delivery made by a Ground driver. This is why FedEx is going to do this, they get the same revenue, but reduce their cost. Cartage agents have and are used whenever the cost for the shipper to maintain a network for final transportation to the consignee is prohibitively high. In this case, it isn't prohibitively high, merely more cost efficient to transfer the volume over to a lower overhead service provider. in this case, that lower overhead service provider just happens to be an other opco of FedEx Corporation - how convenient... Look at that piece of propaganda you received from Fred early in the week. There isn't any direct talk of this change, but the issue of "Quality Driven Management" is behind this. The customer decides what is quality. So, if acceptable quality can be maintained, then it is the responsibility of management to slash operating costs where ever possible. Having a Ground driver make the final "movement" of the 2nd day volume does indeed cut costs for FedEx Corporation while maintaining minimum acceptable quality. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
The Competition
FedEx Discussions
The Big News
Top