Anonymous 10
Guest
It makes me sad everytime i see one of the charismatic characters that i've learned alot from go.
consolidation/EBO...so what happens now...
- Thread starter sosocal
- Start date
island1fox
Well-Known Member
Charley,
I have posted about high revenue volume vs cost per piece.While my basic position has not changed --I would hate to see "panic" set in.
There are many factors that go in to profitability.
I know that there is volume that is extremely undesireable-but-everyone should keep in mind --the present restructuring has been in the planning stages for well over ten years--believe it or not. One thing you all know for a fact --UPS moves very slow with ANY change.
I believe there will be a major transformation from what we see today --but the plan will be continually changed and updated due to other factors --such as fdx unionized --fed x contractor controversy -future contracts--production levels--cost controls,government taxes, increased benefit and health costs etc,etc.
While "panic" should not set in ----no one should take his or her job for granted --mgmt or union. I do not know Dusty --but through his posts on BC -I see him as a very hardwoking UPSer and proud Teamster member--as he has stated -gives his best everyday---if more Ups people did that --the RPP vs CPP would not disappear --but would ease a bit.
Speed Demon
Member
Packaging Up Rate Hikes
Jan 4, 2010 2:43PM GMT
The Journal of Commerce Magazine - News Story
With volume momentum growing, FedEx says it’s time to add pricing momentum to the shipping mix
Weak economy and all, FedEx celebrated a record day in its express division on Dec. 14, 2009, handling 14.1 million packages, and the company has a clear idea of how it wants to mark the occasion.
Pointing to improving demand across its entire range of services, FedEx officials say they are determined going into 2010 to raise prices that have been hurt by diminished demand and beaten down the company’s earnings over the past year.
“As the economy continues to improve, we believe that we’ve got a terrific opportunity to review our pricing strategy,” T. Michael Glenn, executive vice president of the delivery giant, said in a conference call with Wall Street analysts last month, “to make sure it reflects the value of the services that we provide, with the specific objective being to improve our yields for both our parcel and our freight services.”
The company has already announced it will raise list prices 4.9 percent for its express and parcel services, just as FedEx and rival UPS announced a year ago heading into 2009. But that hardly reflected reality in the domestic market: FedEx Express yield for U.S. business fell 21 percent in the six months ending Nov. 30 compared to the same period the year before, and the company’s overall revenue of $16.6 billion in the first half of its 2010 fiscal year was 15 percent behind the year before.
Yet FedEx also ended its fiscal second quarter seeing what it called “positive momentum in the global economy,” and because the reporting period included a key part of the peak season for the expedited business, the company expects that momentum to keep up in coming months.
“Forward-looking indicators point to near-term improvement,” FedEx Chairman, President and CEO Frederick W. Smith told investment analysts. “Manufacturers of capital goods say many of their customers are buying again, as opposed to drawing down inventories, signaling an uptick in capital spending. We believe the process of inventory clearance has bottomed and subsequent restocking is driving growth.”
As the world’s largest express carrier, FedEx has a big window on the late stocking decisions of the world’s retailers and manufacturers, and the company’s numbers showed more goods were moving through distribution pipelines late in 2009, even if the revenue for the carrier didn’t always keep up.
Domestic package volume grew 4 percent in the fiscal second quarter, but FedEx was especially happy about the 6 percent gain in average daily volume for International Priority service.
But even that came with a 14 percent reduction in yield, a sign of why FedEx is intent on taking a new pricing strategy to the market.
“There are several things that we can do and plan to do to make a positive impact on those yields,” Glenn said. “One would be to ensure we get acceptable rate increases as contract renewals roll around, and we have a lot of contract renewals that will be in the hopper here in the months ahead. Two, we are reviewing our pricing guidelines for new business, given the strength of the volume trends. And we are ensuring and analyzing specific customers to make sure that they are meeting volume commitments to retain their current pricing.”
A tough line on rates may prompt stronger competition from UPS for the parcel and express business, but UPS has announced similar increases. Glenn said, however, FedEx is willing to walk away from business to match pricing momentum to volume growth.
“Market share is an interesting statistic but it is not what drives FedEx Corp. . . . When you have the solid growth trends we have at express and ground, you can be more selective, including being more willing to walk away from a piece of business as the economy is improving, than you might be in a difficult economy,” Glenn said.
Still, the company’s operating figures for 2009 suggest it won’t necessarily dismiss customers over transportation costs.
With its cheaper parcel services, the FedEx Ground division defied economic trends last year, and volume at the business grew 4 percent in the second quarter while the operating profit expanded 12 percent to $238 million. The results suggest FedEx retained shippers as they traded down to cheaper services, a strategy the company will keep using in an improving economy.
“The beauty of our organization is that we have a broad portfolio that allows customers to pick and choose the value proposition they would like,” said David Rebholz, president of FedEx Express.
Jan 4, 2010 2:43PM GMT
The Journal of Commerce Magazine - News Story
With volume momentum growing, FedEx says it’s time to add pricing momentum to the shipping mix
Weak economy and all, FedEx celebrated a record day in its express division on Dec. 14, 2009, handling 14.1 million packages, and the company has a clear idea of how it wants to mark the occasion.
Pointing to improving demand across its entire range of services, FedEx officials say they are determined going into 2010 to raise prices that have been hurt by diminished demand and beaten down the company’s earnings over the past year.
“As the economy continues to improve, we believe that we’ve got a terrific opportunity to review our pricing strategy,” T. Michael Glenn, executive vice president of the delivery giant, said in a conference call with Wall Street analysts last month, “to make sure it reflects the value of the services that we provide, with the specific objective being to improve our yields for both our parcel and our freight services.”
The company has already announced it will raise list prices 4.9 percent for its express and parcel services, just as FedEx and rival UPS announced a year ago heading into 2009. But that hardly reflected reality in the domestic market: FedEx Express yield for U.S. business fell 21 percent in the six months ending Nov. 30 compared to the same period the year before, and the company’s overall revenue of $16.6 billion in the first half of its 2010 fiscal year was 15 percent behind the year before.
Yet FedEx also ended its fiscal second quarter seeing what it called “positive momentum in the global economy,” and because the reporting period included a key part of the peak season for the expedited business, the company expects that momentum to keep up in coming months.
“Forward-looking indicators point to near-term improvement,” FedEx Chairman, President and CEO Frederick W. Smith told investment analysts. “Manufacturers of capital goods say many of their customers are buying again, as opposed to drawing down inventories, signaling an uptick in capital spending. We believe the process of inventory clearance has bottomed and subsequent restocking is driving growth.”
As the world’s largest express carrier, FedEx has a big window on the late stocking decisions of the world’s retailers and manufacturers, and the company’s numbers showed more goods were moving through distribution pipelines late in 2009, even if the revenue for the carrier didn’t always keep up.
Domestic package volume grew 4 percent in the fiscal second quarter, but FedEx was especially happy about the 6 percent gain in average daily volume for International Priority service.
But even that came with a 14 percent reduction in yield, a sign of why FedEx is intent on taking a new pricing strategy to the market.
“There are several things that we can do and plan to do to make a positive impact on those yields,” Glenn said. “One would be to ensure we get acceptable rate increases as contract renewals roll around, and we have a lot of contract renewals that will be in the hopper here in the months ahead. Two, we are reviewing our pricing guidelines for new business, given the strength of the volume trends. And we are ensuring and analyzing specific customers to make sure that they are meeting volume commitments to retain their current pricing.”
A tough line on rates may prompt stronger competition from UPS for the parcel and express business, but UPS has announced similar increases. Glenn said, however, FedEx is willing to walk away from business to match pricing momentum to volume growth.
“Market share is an interesting statistic but it is not what drives FedEx Corp. . . . When you have the solid growth trends we have at express and ground, you can be more selective, including being more willing to walk away from a piece of business as the economy is improving, than you might be in a difficult economy,” Glenn said.
Still, the company’s operating figures for 2009 suggest it won’t necessarily dismiss customers over transportation costs.
With its cheaper parcel services, the FedEx Ground division defied economic trends last year, and volume at the business grew 4 percent in the second quarter while the operating profit expanded 12 percent to $238 million. The results suggest FedEx retained shippers as they traded down to cheaper services, a strategy the company will keep using in an improving economy.
“The beauty of our organization is that we have a broad portfolio that allows customers to pick and choose the value proposition they would like,” said David Rebholz, president of FedEx Express.
IWorkAsDirected
Outa browns on 04/30/09
It's just a wild guess, but I'm bettin' you have never delivered in the country.
Yes, but I also agree they should get good service. I can see this being taken advantage of, there would have to be alot of thought before starting something like this. Who wants their boss or co-workers checking out their package? What if you are not at work for some reason when it's delivered? What if it gets stolen or misplaced? Sounds like a nightmare to me.
Dustyroads
Well-Known Member
As I said, you obviously, have never delivered in the country. Country drivers indirect packages every single day to commercial addresses. Customers alert you when packages are coming so you will bring it to them instead of leaving on their porch. If they aren't at work, you don't leave it, it's that simple. If it's stolen, well, first, the person signed for it, so we're clear, second, no one steals out in the country at work, and three, we have a lot more losses off of people's porch as a company than we do of packages that a person signed for in person.
As I said, you just don't have any experience of delivering in rural areas. I'm sure it's new and scarey for you. But, as I've noted, rural drivers do it all of the time, if they want to.
govols019
You smell that?
I get paid to take it the address on the box. If they wanted it where they work then that's the address they should have put on it.
If I happen to see them at their place of work and they ask I will let them have the package there. If they don't ask then it will be at their house when they get home.
If I happen to see them at their place of work and they ask I will let them have the package there. If they don't ask then it will be at their house when they get home.
1989
Well-Known Member
IWorkAsDirected
Outa browns on 04/30/09
Oohhh New and Scary!! I lived on a farm for 19 years 5 miles from anybody. What I am talking about is the fact that some (maybe alot) of drivers, especially new or cover drivers would take advantage of this and it would be a nightmare, AND how could this be implemented ONLY for "country routes" AND Who paid for this service anyway? Who are we contracted with? The shipper!!! So if the receiver wants it somewhere else, they should have it shipped somehwere else. It really needs to be clear, cut and dried or it would be a mess.
UpstateNYUPSer(Ret)
Well-Known Member
Indirecting residential packages to a commercial location is only done with the permission of the consignee but I can tell you from experience that most of the people that I would ask had no problem and even appreciated me doing this for them. We are not talking about leaving a Nordic Trak at their office--we are talking LL Bean or something manageable. It is a win/win but it does take a solid relationship with the business and especially the consignee in question. There were instances when doing this would save me a 10 mile round trip for that one package.
I am on a city run so this is not as big of a deal but I still have a couple of customers who both live and operate a business on my area so I will bring their personal packages to their business and they thank me for doing so.
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