Last Mile

[McFeely]

It’s been implemented. It’s working fine. I don’t think it was terribly hard to pull off.

After seeing it implemented here in Colorado, it appears to be working fine. I pick up 2-3 of these a day, and most were 3-day packages. The one I grabbed the other day going to Delaware was delivered on time.

 

[AB831]

It’s been implemented. It’s working fine. I don’t think it was terribly hard to pull off.

See, that's where I'm confused. Our managers made it sound like it's going to be a huge shift of freight from our station over to the Ground station. It seems to have affected your area minimally though. I guess I just have to really wait and see what happens. I'm in the DC/Maryland/Virginia area, so I'm not sure what that would mean for us.

 

[It will be fine]

See, that's where I'm confused. Our managers made it sound like it's going to be a huge shift of freight from our station over to the Ground station. It seems to have affected your area minimally though. I guess I just have to really wait and see what happens. I'm in the DC/Maryland/Virginia area, so I'm not sure what that would mean for us.

It all depends. In you area probably half the country is inside 2 days of Ground so everything out west would remain in the Express network. They will continue to send more freight to Ground. They are doing 2-3 day shipments for now and still expanding what origin stations that comes from. They’ll finish that then incorporate overnight volume. Once customers are accustomed to Ground delivering express they’ll send the business stops over too.

 

[AB831]

It all depends. In you area probably half the country is inside 2 days of Ground so everything out west would remain in the Express network. They will continue to send more freight to Ground. They are doing 2-3 day shipments for now and still expanding what origin stations that comes from. They’ll finish that then incorporate overnight volume. Once customers are accustomed to Ground delivering express they’ll send the business stops over too.

So it’ll be gradual and incremental instead of just happening overnight? What do you think the endgame is? It makes way more financial sense for the company to dump Express all together, but I don’t know if they’d ever actually do that if not just for the sake of branding.

 

[It will be fine]

So it’ll be gradual and incremental instead of just happening overnight? What do you think the endgame is? It makes way more financial sense for the company to dump Express all together, but I don’t know if they’d ever actually do that if not just for the sake of branding.

They’ll keep Express for premium deliveries and pickups. They still need the air network to make service. They are just to going to save on final mile as much as they can. Might as well continue to charge customers for Express.

 

[59 Dano]

It all depends. In you area probably half the country is inside 2 days of Ground so everything out west would remain in the Express network. They will continue to send more freight to Ground. They are doing 2-3 day shipments for now and still expanding what origin stations that comes from. They’ll finish that then incorporate overnight volume. Once customers are accustomed to Ground delivering express they’ll send the business stops over too.

Express plan is to retain business stops and bleed off as many resis as possible. They are putting a heavy emphasis on overnight service, especially business stops. Business P1's will be 1030, resi P1's will be 1200 (areas that have traditional commit times), which has already launched in some markets. Standard overnight service is likely to change before the end of the year, with business and resi stops both going back to having the same commit time. Express is also moving away from afternoon packages being delivered in the P1 cycle, which is a big reason behind the shift of P1 freight to part-timers.

FedEx expects continued rapid growth in ecommerce and Ground will be a huge part of that. Express won't, at least not on the delivery side. The changes Express is making now are to accommodate more overnight volume and preserve service commitments. They will be doing more to differentiate the Express and Ground brands.

 

[59 Dano]

It makes way more financial sense for the company to dump Express all together.

ROTFLMAO

 

[BigWork13]

Express plan is to retain business stops and bleed off as many resis as possible. They are putting a heavy emphasis on overnight service, especially business stops. Business P1's will be 1030, resi P1's will be 1200 (areas that have traditional commit times), which has already launched in some markets. Standard overnight service is likely to change before the end of the year, with business and resi stops both going back to having the same commit time. Express is also moving away from afternoon packages being delivered in the P1 cycle, which is a big reason behind the shift of P1 freight to part-timers.

FedEx expects continued rapid growth in ecommerce and Ground will be a huge part of that. Express won't, at least not on the delivery side. The changes Express is making now are to accommodate more overnight volume and preserve service commitments. They will be doing more to differentiate the Express and Ground brands.

So you're saying standard overnight won't be delivered with P1 going to the same stop anymore. That seems incredibly inefficient. A business could have 3 FedEx drivers deliver to the same stop every day. We would be a laughing stock of a company and would appear to not know what we are doing.

 

[zeev]

The mess of the two delivery system ,what keeps Express going is the desire of management to keep their jobs. Also as far as the reach of 2 day service all they have to do is to take all the P2 cans off the plane and take it to the Ground station , much of the domestic Express freight never sees a plane.

 

[AB831]

We would be a laughing stock of a company and would appear to not know what we are doing.

FedEx already is a laughingstock of a company full of people who don’t know what they’re doing.

 

[AB831]

The mess of the two delivery system ,what keeps Express going is the desire of management to keep their jobs. Also as far as the reach of 2 day service all they have to do is to take all the P2 cans off the plane and take it to the Ground station , much of the domestic Express freight never sees a plane.

Exactly

 

[AB831]

ROTFLMAO

What was Express’s profit margin last fiscal year, smart guy?

 

[59 Dano]

So you're saying standard overnight won't be delivered with P1 going to the same stop anymore. That seems incredibly inefficient. A business could have 3 FedEx drivers deliver to the same stop every day.

Should have been clearer: they are going to eliminate standalone stops in the P1 cycle. Poor wording on my part.

Now, it's entirely possible that they may split up some stops in certain circumstances. For example, a stop gets 1 or 2 P1 pieces and 25 afternoon pieces during the P1 cycle. It might be worth it to split that stop up. It's something that will be considered and would probably be administered at the market level, if implemented.

We would be a laughing stock of a company and would appear to not know what we are doing.

Oh geez. We were going to be the laughingstock of the industry because of the raggedy Ground trucks and ragamuffin Ground drivers. No one cares.

 

[59 Dano]

What was Express’s profit margin last fiscal year, smart guy?

Around 6%, IIRC. What makes you think it would make more sense to dump Express altogether, Einstein?

 

[59 Dano]

FedEx already is a laughingstock of a company full of people who don’t know what they’re doing.

You feel right at home, don't you?

 

[AB831]

Around 6%, IIRC. What makes you think it would make more sense to dump Express altogether, Einstein?

A 6% profit margin is very poor, and I'm pretty sure it was actually a good bit lower than that. So why is it so crazy to think they'd be better off without Express? If their margin dips any lower than that, Ground will be keeping them in business if they aren't already.

 

[59 Dano]

A 6% profit margin is very poor,

It's consistent with the airline industry average despite the added expenses of operating a ground support network.

and I'm pretty sure it was actually a good bit lower than that.

It wasn't.

So why is it so crazy to think they'd be better off without Express?

$2.1 billion profit from Express in FY19 and you think they'd be better off without it. My God.

If their margin dips any lower than that, Ground will be keeping them in business if they aren't already.

By comparison, Ground turned a profit of $2.6 billion in FY19.

 

[Working4the1%]

Ground will be exposed on 1/21/21 when JOE starts signing off the Excecutive orders..then cost savings of Ground go bye bye.

 

[Buhryein]

So you're saying standard overnight won't be delivered with P1 going to the same stop anymore. That seems incredibly inefficient. A business could have 3 FedEx drivers deliver to the same stop every day. We would be a laughing stock of a company and would appear to not know what we are doing.

Figure you go to a company that's used to getting all their docs in the AM in actuality they only have 2 p1s and 40 standards.

The mail room is processing these every morning and when you go there late (any time after 10:30 let's say a late freight day) they are upset because you are holding up their day right?

My thinking is fedex having a p1 plane and p2 plane you have far less if any tag alongs. Companies will have to then consider having their product shipped at a higher cost p1 service.

Else they are waiting on packages that can arrive at 3pm when they are currently used to waiting each morning to process all of their packages they get now daily.

I deliver to 2 major Bank office buildings. They can get 100+ docs if 20 are p1 that's a heavy p1 day. They will have to make adjustments and I think FedEx is counting on them increasing p1 freight. Wouldn't add any work or hours to fedex it would just add revenue.

 

[Spam]

It's consistent with the airline industry average despite the added expenses of operating a ground support network.



It wasn't.



$2.1 billion profit from Express in FY19 and you think they'd be better off without it. My God.



By comparison, Ground turned a profit of $2.6 billion in FY19.

He hates FACTS!!!!!