Express handing resi deliveries to Ground

[vantexan]

“FedEx’s move to hand off delivery of a significant portion—we estimate 60%—of its residential Express packages to the Ground network for delivery is likely to drive significant cost savings ,” wrote Wadewitz in a Monday research report. He believes FedEx can save up to $600 million a year from the shift.”

And if they can save that much they'll start looking for ways to save more using Ground.

 

[59 Dano]

Where's Dano when you need him?

Why do you think I returned to the company????

So MrFedex was right all along!
I guess the rampant speculation is over.

How about some rampant speculation?

Not quite. He'd been pitching the idea forever. This was one of several planned responses to the failure of Express to tighten up. Won't go so far to say it was/wasn't inevitable at some point, but this and the decision to implement it are somewhat recent.

 

[vantexan]

Why do you think I returned to the company????



Not quite. He'd been pitching the idea forever. This was one of several planned responses to the failure of Express to tighten up. Won't go so far to say it was/wasn't inevitable at some point, but this and the decision to implement it are somewhat recent.

That's because FedEx refused to listen to an employee. They had to wait until it seemed like their idea.

 

[59 Dano]

Still a no layoff policy.

There is no such policy.

Your manager may not have heard anything at that point.

Hardly any of them did. Express had a planned announcement but they had to rush it out Friday because word had leaked and they wanted to get it out there before whichever news org who found out scooped them. Anyone who was involved was sworn to secrecy. Guys in my group were given an updated confidentiality agreement to sign.

 

[59 Dano]

Unfortunately I can see the possibility of customers filing class action lawsuits, some customers have strong feelings against Ground, and specifically want Express carrying their packages. And if it turns out that they(lawyers) see this as a cash grab, it has potential to get ugly.

Would be laughed out of court.

 

[MDUB25]

P1 residential commit time will change to 12pm. Don't know when it will start. Senior manager told us this morning

 

[59 Dano]

That pretty much describes Express presently.

And here we are, with freight going to Ground.

There was a reason I expressed so much frustration and aggravation about people not meeting and being held to standards - it's expensive. When things get too expensive, people look for cheaper alternatives.

This doesn't happen now if managers and seniors took care of the issues that were within their control.

 

[59 Dano]

I'm sure they will do this on the origin side of things where feasible. A Florida-to-Georgia package can make it in 2 days, so I don't see why they wouldn't use Ground for the ride and the delivery. That may also be in the works with the new ASTRA coding.

But in your cases you stated a Ground driver would deliver the Georgia package and an Express driver would deliver the California package. The company wants $15/hour Ground drivers, not $25/hr Express drivers so they're going to increase the use of their contractor model. Actually, the shareholders want that and the C suite is focusing on that.

They will try one way and if doesn't work they will try another.

There are a bunch of delusional people in the FB group who are convinced that customers will get upset en masse at the decline in service and we'll get it all back. It's resi stuff that's due by 2000 and no one cares who delivers it.

 

[59 Dano]

my freight = Fedex EXPRESS freight. Not "FedEx" freight, not "FedEx Ground" freight. The customer SPECIFICALLY stated they wanted that service with the Express company, NOT with Ground. If they wanted GROUND service, they would have chosen the GROUND company. If Ground wanted to give Express freight, they could because we could be a "contractor" with FXG, just like you.

There is no way to go the other way around. We don't contract with other companies when we service the area ourselves.

That's where the lawyers are going to circle. It's bait and switch, technically.

If FedEx sold all shipping products as pure "FedEx" shipments then I'd have no leg to stand on. However, they paid for "FedEx Express", not "FedEx Ground".

Dude... no one cares. We do, but outside of us? The rest of the world doesn't care.

Customer: "The Ground guy delivered the package I wanted the Express guy to deliver."
Lawyer: "Whoopee. What are your damages?"
Customer: "It's not what I wanted."
Lawyer: "You paid for next day delivery by 2000. You got that."
Customer: "But I wanted the other guy to do it."
Lawyer: "Wanna guess how much that's worth in damages?"

 

[59 Dano]

I was talking to my SM this morning and he’s claims it’s only going to be for the outer areas and that everyone is speculating. He claims it won’t effect most of us. I told him that if they hadn’t released the news without more information people wouldn’t need to be speculating. I guess all we can do is wait and see what happens.

Rumor is that they are targeting routes that do 5-7 SPH. Other rumors are that there are more criteria involved that will determine whether an Express pkg stays with Express or is tendered to Ground.

 

[MAKAVELI]

And here we are, with freight going to Ground.

There was a reason I expressed so much frustration and aggravation about people not meeting and being held to standards - it's expensive. When things get too expensive, people look for cheaper alternatives.

This doesn't happen now if managers and seniors took care of the issues that were within their control.

That's what happens when you have the massive turnover that we have. The company's got nobody to blame but themselves.

 

[59 Dano]

That's what happens when you have the massive turnover that we have. The company's got nobody to blame but themselves.

I put it hand in hand. Couriers didn't want to be held to high standards and their bosses didn't want to hold them to high standards. When management and couriers don't work together to take care of the things that they can control, and are content to be stagnant, someone else will do it for them.

And here we are!

 

[59 Dano]

P1 residential commit time will change to 12pm. Don't know when it will start. Senior manager told us this morning

If any of you have seen an increase in engineers at your stations and/or talk of routes being restructured........

 

[PSB1964]

Fedex Express just lost their PENSION now they are losing work. I think its time to join the UNION

 

[MAKAVELI]

I put it hand in hand. Couriers didn't want to be held to high standards and their bosses didn't want to hold them to high standards. When management and couriers don't work together to take care of the things that they can control, and are content to be stagnant, someone else will do it for them.

And here we are!

I think this goes far beyond lazy couriers. The vast majority of us are hard-working and productive. This is more about FedEx is system of two operating companies unable to adapt to e-commerce growth.

 

[Route 66]

Fedex Express just lost their PENSION now they are losing work. I think its time to join the UNION

That shipped sailed off empty years ago - not enough passengers interested in signing up for the cruise

 

[Operational needs]

Rumor is that they are targeting routes that do 5-7 SPH. Other rumors are that there are more criteria involved that will determine whether an Express pkg stays with Express or is tendered to Ground.

If this is true, I’m glad I got off my last route.

 

[MAKAVELI]

If this is true, I’m glad I got off my last route.

Not enough volume in those areas to make a difference. They will be targeting high density resis even more.

 

[bacha29]

Not enough volume in those areas to make a difference. They will be targeting high density resis even more.

The stock's only up 5% on Friday's news. And I asked my adviser what his firm's opinion is on the matter......not much. On the other hand Morgan Stanley has put a new target price on Amazon.......2400. Another 8+% on top of another 52 week high.

 

[MAKAVELI]

The stock's only up 5% on Friday's news. And I asked my adviser what his firm's opinion is on the matter......not much. On the other hand Morgan Stanley has put a new target price on Amazon.......2400. Another 8+% on top of another 52 week high.

I think a lot of big investors are probably a little skeptical about this plan and waiting to see if it actually works.