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The Plan is Still a Go
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<blockquote data-quote="MrFedEx" data-source="post: 1064318" data-attributes="member: 12508"><p>Express is still profitable. The profit margins at Ground are so much greater for Smith that he's willing to gut Express and shift XS and E2 over...it's all about the money. IMO, all of the talk about saving $1.7B at Express is just a ruse to cover for the Ground switchover. Of course Fred will be able to save money at Express, because he's not going to need as many people, vehicles, or planes to move his product. </p><p></p><p>I'm not a "doomsday evangelist" but if you worked here, you'd understand the way FedEx operates. They say one thing, and then do another. The one thing that looms over everything else is Fred's subsidized Ground division, which operates at an approximately 40% cost advantage over UPS and returns far more profit on a percentage-basis than Express. It should be <strong>obvious</strong> that Smith is going to move as much of the Express product line over to Ground as quickly as possible.</p><p></p><p>Common sense.</p></blockquote><p></p>
[QUOTE="MrFedEx, post: 1064318, member: 12508"] Express is still profitable. The profit margins at Ground are so much greater for Smith that he's willing to gut Express and shift XS and E2 over...it's all about the money. IMO, all of the talk about saving $1.7B at Express is just a ruse to cover for the Ground switchover. Of course Fred will be able to save money at Express, because he's not going to need as many people, vehicles, or planes to move his product. I'm not a "doomsday evangelist" but if you worked here, you'd understand the way FedEx operates. They say one thing, and then do another. The one thing that looms over everything else is Fred's subsidized Ground division, which operates at an approximately 40% cost advantage over UPS and returns far more profit on a percentage-basis than Express. It should be [B]obvious[/B] that Smith is going to move as much of the Express product line over to Ground as quickly as possible. Common sense. [/QUOTE]
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