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FedEx Discussions
Ground to absorb Express
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<blockquote data-quote="dmac1" data-source="post: 2719818" data-attributes="member: 60252"><p>Not all express is time of day sensitive. Ground could deliver al of that. Ground drivers are expected to deliver every package on their vehicle daily. ISPs are supposed to ensure that they do get delivered. or else they risk their investment. Ground ISPs have a much bigger incentive to get packages out on time, especially if fedex pays just a little extra to deliver express packages. </p><p></p><p>Express can still do their pickups, maybe do all pickup, and all specific time deliveries. If fedex can even cut 20% of their delivery drivers, they'll save millions annually, maybe into the hundreds of millions. </p><p></p><p>And all the savings aren't just driver pay- there's support staff, vehicles, vehicle maintenance, terminal/station leasing, HR would be smaller, retirement contributions, benefits, and so on. There is just no way fedex should be paying twice as much for the driver, plus all these additional employment costs if there is an alternative.</p></blockquote><p></p>
[QUOTE="dmac1, post: 2719818, member: 60252"] Not all express is time of day sensitive. Ground could deliver al of that. Ground drivers are expected to deliver every package on their vehicle daily. ISPs are supposed to ensure that they do get delivered. or else they risk their investment. Ground ISPs have a much bigger incentive to get packages out on time, especially if fedex pays just a little extra to deliver express packages. Express can still do their pickups, maybe do all pickup, and all specific time deliveries. If fedex can even cut 20% of their delivery drivers, they'll save millions annually, maybe into the hundreds of millions. And all the savings aren't just driver pay- there's support staff, vehicles, vehicle maintenance, terminal/station leasing, HR would be smaller, retirement contributions, benefits, and so on. There is just no way fedex should be paying twice as much for the driver, plus all these additional employment costs if there is an alternative. [/QUOTE]
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