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<blockquote data-quote="bbsam" data-source="post: 5184909" data-attributes="member: 22662"><p>Incorrect. UPS and FedEx always have contingency plans. They may fail but the plans are there. FedEx has failed and will continue to fail because they absolutely refuse to face the employee shortage and the need for increased compensation. UPS put out great numbers a month ago with great service numbers with high cost labor. FedEx was at 88% on time service. FedEx has thrived on low compensation/high turnover for decades. It’s not sustainable in a world where wages (and more so inflation) continue to rise. A little known fact but one that could truly threaten FedEx down the road is their inability to keep accidents and insurance costs under control.</p><p></p><p>In the 27 1/2 years I’ve been at FedEx, I’ve known only one driver never to have an accident. Most accidents at FedEx are drivers who have been driving less than a year. Put 2 and 2 together. If the plan for the future is to keep the revolving door revolving, there is no future.</p><p></p><p>Again, it’s only business. Market forces determine forecasts and plans as well as influencing outcome of those plans. But just like the oil company analogy, UPS and FedEx are making huge money BECAUSE of capacity constraints. </p><p></p><p>Eventually performance matters but for now, customers just shrug their shoulders and wait the extra day or two to get their stuff. </p><p></p><p>Or drive to Walmart.</p></blockquote><p></p>
[QUOTE="bbsam, post: 5184909, member: 22662"] Incorrect. UPS and FedEx always have contingency plans. They may fail but the plans are there. FedEx has failed and will continue to fail because they absolutely refuse to face the employee shortage and the need for increased compensation. UPS put out great numbers a month ago with great service numbers with high cost labor. FedEx was at 88% on time service. FedEx has thrived on low compensation/high turnover for decades. It’s not sustainable in a world where wages (and more so inflation) continue to rise. A little known fact but one that could truly threaten FedEx down the road is their inability to keep accidents and insurance costs under control. In the 27 1/2 years I’ve been at FedEx, I’ve known only one driver never to have an accident. Most accidents at FedEx are drivers who have been driving less than a year. Put 2 and 2 together. If the plan for the future is to keep the revolving door revolving, there is no future. Again, it’s only business. Market forces determine forecasts and plans as well as influencing outcome of those plans. But just like the oil company analogy, UPS and FedEx are making huge money BECAUSE of capacity constraints. Eventually performance matters but for now, customers just shrug their shoulders and wait the extra day or two to get their stuff. Or drive to Walmart. [/QUOTE]
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