Last Man Standing

[brownmonster]

In this economy UPS has a chance to be the last man standing when the dust settles. DHL has almost admitted they are done and Fedex can't run 2 or 3 trucks to the same stops with the rising fuel costs. Sadly as the volume drops we cut areas and further alienate our customer base. We have the resources to weather the storm and an opportunity to win new volume through service. I fear increased production will be the answer, not an emphasis on service or quality. BM

 

[over9five]

Nice post, BM!

I was thinking that exact thing yesterday (last man standing). In my relatively short time in Feeders, I have already seen two trucking companies fall. Gawd, I can't think of either name. It'll come to me...

Jevic! That was one...

Anyhow, I guess I feel good ol' UPS is best positioned to weather the storm.

 

[dilligaf]

The sad thing is, we could get more volume with better customer service. The company has gotten so out of touch with the customer service part of this. They preach at us to get new leads, especially with DHL leaving, but when do we have time to. They are breaking out rtes to save a dime and our customers are suffering the consequences for it. Not to mention the drivers. We are out later, causing more overtime pay and 9.5 grievances. If they would leave the rtes alone or even add rtes where they are needed the drivers would be happier, have more time to look for new accounts and be more willing to build the business.

Come UPS, wake up and smell the coffee. What part of this do you not understand. The mucky-mucks are the ones killing this company. Just to save a dime? You would save a ton of money by not paying grievances and overtime.

 

[feeder53]

I believe UPS has the history and name recognition to pull ahead of the pack, IF they focus and try to get the business back that has left. This will take commitment and effort on everyones part.

 

[But Benefits Are Great!]

What is UPS doing with regards to the "reason" every trucking company is hurting / going out of business (fuel)?

 

[dilligaf]

The fuel issue is where we are capable of weathering the storm. And yes the company is doing something. Think 'green'. But that is not all they are doing. I just don't agree with some of what they are doing. Breaking out rtes might save fuel and on the other hand it might not. In some cases, as in rural communities, one truck might have to drive more than what 2 trucks would.
If our volume was up, if we had time to get new accounts, if we had happy customers and drivers, if our volume was up etc,etc that would offset the cost of fuel. It is a double edged sword that our company plays with. It draws blood in both directions.

 

[JustTired]

The participant's perspectives are clouded while the bystanders views are clear. -- Chinese proverb

Your sig line says it all. We being the participants and management the bystanders!

 

[outamyway]

The participant's perspectives are clouded while the bystanders views are clear. -- Chinese proverb

Your sig line says it all. We being the participants and management the bystanders!

No, we are the bystanders because there is very little we can do about it and we see the problems first hand.

Management can do more to fix it but they do as little as possible to change things for the better and their planning only for the short term has helped fuel the predicament we're in now. Their bonuses are also more important than a well serviced customer.

 

[New Englander]

Fuel is not that big of an issue for FedEx and multiple trucks going into stops. FedEx's subsidy for their independent contractors is less then the cost of fuel.

The rest of the fuel is on that "owners" shoulders.

 

[But Benefits Are Great!]

Fuel is not that big of an issue for FedEx and multiple trucks going into stops. FedEx's subsidy for their independent contractors is less then the cost of fuel.

The rest of the fuel is on that "owners" shoulders.

Exellent Point

 

[COSMOS]

There are rumors at FedEx Express that Express drivers are going to start picking up/delivering Ground packages in some markets. I would imagine they will start in the markets where they are getting the most resistance to the "Ground Contractor" model.

 

[looper804]

There are rumors at FedEx Express that Express drivers are going to start picking up/delivering Ground packages in some markets. I would imagine they will start in the markets where they are getting the most resistance to the "Ground Contractor" model.

I don't believe they can,they are classified as air carrier.If they allowed ground then the union would organize them in a minute and you know Fred doesn't wan't that.

 

[tieguy]

Nice post, BM!

I was thinking that exact thing yesterday (last man standing). In my relatively short time in Feeders, I have already seen two trucking companies fall. Gawd, I can't think of either name. It'll come to me...

Jevic! That was one...

Anyhow, I guess I feel good ol' UPS is best positioned to weather the storm.

Sales lead for ups frieght.

 

[tieguy]

The sad thing is, we could get more volume with better customer service. The company has gotten so out of touch with the customer service part of this. They preach at us to get new leads, especially with DHL leaving, but when do we have time to. They are breaking out rtes to save a dime and our customers are suffering the consequences for it. Not to mention the drivers. We are out later, causing more overtime pay and 9.5 grievances. If they would leave the rtes alone or even add rtes where they are needed the drivers would be happier, have more time to look for new accounts and be more willing to build the business.

Come UPS, wake up and smell the coffee. What part of this do you not understand. The mucky-mucks are the ones killing this company. Just to save a dime? You would save a ton of money by not paying grievances and overtime.

Unfortunately riding out the storm also means we have to tighten our belts. I do agree with the sentiments of your post. One reason we may have problems when we break out routes is because we never had a good loop or dispatch plan in place to provide a good foundation.jmho

 

[tieguy]

The participant's perspectives are clouded while the bystanders views are clear. -- Chinese proverb

No, we are the bystanders because there is very little we can do about it and we see the problems first hand.

Management can do more to fix it but they do as little as possible to change things for the better and their planning only for the short term has helped fuel the predicament we're in now. Their bonuses are also more important than a well serviced customer.

A couple of points to counter and yes you're right we can always do more.

We hedge fuel which allows us to lock in lower prices for fuel far in advance and takes some of the shock out of sudden price surges like we have now. The longer the prices stay up the less advantage we have.

we've been experimenting with alternative fuel sources for quite a while and we are probably a leader in this area in transportation.

And last management bonus are heavily weighted towards growing the business and growing the most profitable business air / intl. So the bonus are actually aligned towards our signing and retaining customers.

We are a successfull company because we have a long history of squeezing blood out of every nickle we spend. That won't change. We will always weigh cost against service and see if are getting our moneys worth out of the service changes we make.

In defense of the company in this area we have and currently do spend a lot more money running sleeper teams all over the country to improve our service. These lane enhancements did see significant volume increases in the areas we put them in. So we will spend the money if we think we will get a good ROI.

I firmly believe that PAS and EDD with all its percieved faults will eventually allow us to deliver near perfect service.

And last I like Dillis quote but i think both the participants and the bystanders have their unique perspective. Both see things the other does not. If we combine them then we see all.

 

[wyobill]

They have not tightened their belts in our center. I deliver a Rural RT and ever since pass was put in my NDA commit extended to my area out of City Limits. All NDA off by noon. This impossible to achieve. I run all over like a chicken with his head cut off adding huge miles to my Route. They also send an Air driver out to make the ones I cant. This cost is enormous and we are losing big dollars on these deliveries. I deliver a valley thats a dead end road so its not like I can give stop to a driver going thru.
The last 2 days they called an air driver in to deliver 1 stop 40 miles from our center.
What is the company thinking???? Other drivers have this problem to in our center.
We are only a 12 RT center in the middle of nowhere.

 

[COSMOS]

I don't believe they can,they are classified as air carrier.If they allowed ground then the union would organize them in a minute and you know Fred doesn't wan't that.

I'm sure that FedEx management has weighed the pros and cons. Honestly, I don't think that unionization is their biggest worry. Support for that isn't as strong as some would think. However, increasing stop density and eliminating redundant routes would be an easy way to increase profit rapidly. Endless litigation over contractors is also a waste of money.

 

[New Englander]

I'm sure that FedEx management has weighed the pros and cons. Honestly, I don't think that unionization is their biggest worry. Support for that isn't as strong as some would think. However, increasing stop density and eliminating redundant routes would be an easy way to increase profit rapidly. Endless litigation over contractors is also a waste of money.

You guys are all thinking as if FDX is like UPS. Eliminating redundant routes is not going to drastically increase profit for them.

 

[dilligaf]

Unfortunately riding out the storm also means we have to tighten our belts. I do agree with the sentiments of your post. One reason we may have problems when we break out routes is because we never had a good loop or dispatch plan in place to provide a good foundation.jmho

I don't have a problem with tightening of the belts. But lets be smart about it. I agree with the necessity of having a good foundation. It would be nice if we had one. LOL.

 

[dilligaf]

They have not tightened their belts in our center. I deliver a Rural RT and ever since pass was put in my NDA commit extended to my area out of City Limits. All NDA off by noon. This impossible to achieve. I run all over like a chicken with his head cut off adding huge miles to my Route. They also send an Air driver out to make the ones I cant. This cost is enormous and we are losing big dollars on these deliveries. I deliver a valley thats a dead end road so its not like I can give stop to a driver going thru.
The last 2 days they called an air driver in to deliver 1 stop 40 miles from our center.
What is the company thinking???? Other drivers have this problem to in our center.
We are only a 12 RT center in the middle of nowhere.

Tie, this is not being smart about.