Something To Remember As We Enter Peak

bbsam

Moderator
Staff member
It seems that the syncing of technology may come into play this peak. Ground has a huge problem. They have projections that they simply can't handle. There is a solution in making the business proposition to make peak profitable for contractors /ISPs, but the company knows that's not profitable for them.



What is Pittsburgh to do...

Turn to Memphis. Yes, Memphis is going to be busy, but that is a work force that can be pushed for 20 days to the tune of 14 hours a day. If they can pull that off, it puts peak for Ground at last year's doable levels.



And now for the chorus of "They can't do that!"



Of course they can and you and I may never even know it happens. They have a combined sales force with integrated shipping software. Ah, the possibilities....



So imagine TUT sending a widgit through Ground with an estimated delivery day two days away. But as he goes to print the label, a message flashes on the screen, "Automatic Upgrade" and out comes an Express label but at Ground's price. Is Tut going to complain? Probably not. We have seen this before in selling Ground and Express together and letting the customer "choose" Ground. It's a no brainer. Free upgrade during peak?Another no brainer.



We have always thought of FDX as running separate opcos. That is how they have always described it and to a degree it's true. On a whole though, we all serve the single purpose of transporting freight for FDX.

Or it could all be more rampant speculation.:)
 

hypo hanna

Well-Known Member
My guess is that the "Mystery Memo" concerns this very issue. It would be exactly like Smith and Co. to try and foist-off all of the costs onto the ISP/contractor.

This is standard operating procedure for our captains of industry. Keep the profits while shifting the cost to someone else. Did we not learn anything from the 2008 economic meltdown?
 

bbsam

Moderator
Staff member
It seems that the syncing of technology may come into play this peak. Ground has a huge problem. They have projections that they simply can't handle. There is a solution in making the business proposition to make peak profitable for contractors /ISPs, but the company knows that's not profitable for them.



What is Pittsburgh to do...

Turn to Memphis. Yes, Memphis is going to be busy, but that is a work force that can be pushed for 20 days to the tune of 14 hours a day. If they can pull that off, it puts peak for Ground at last year's doable levels.



And now for the chorus of "They can't do that!"



Of course they can and you and I may never even know it happens. They have a combined sales force with integrated shipping software. Ah, the possibilities....



So imagine TUT sending a widgit through Ground with an estimated delivery day two days away. But as he goes to print the label, a message flashes on the screen, "Automatic Upgrade" and out comes an Express label but at Ground's price. Is Tut going to complain? Probably not. We have seen this before in selling Ground and Express together and letting the customer "choose" Ground. It's a no brainer. Free upgrade during peak?Another no brainer.



We have always thought of FDX as running separate opcos. That is how they have always described it and to a degree it's true. On a whole though, we all serve the single purpose of transporting freight for FDX.

Or it could all be more rampant speculation.:)
Besides, they are going to need something for couriers to do while waiting to deliver all those CDO's.
 

MrFedEx

Engorged Member
It seems that the syncing of technology may come into play this peak. Ground has a huge problem. They have projections that they simply can't handle. There is a solution in making the business proposition to make peak profitable for contractors /ISPs, but the company knows that's not profitable for them.



What is Pittsburgh to do...

Turn to Memphis. Yes, Memphis is going to be busy, but that is a work force that can be pushed for 20 days to the tune of 14 hours a day. If they can pull that off, it puts peak for Ground at last year's doable levels.



And now for the chorus of "They can't do that!"



Of course they can and you and I may never even know it happens. They have a combined sales force with integrated shipping software. Ah, the possibilities....



So imagine TUT sending a widgit through Ground with an estimated delivery day two days away. But as he goes to print the label, a message flashes on the screen, "Automatic Upgrade" and out comes an Express label but at Ground's price. Is Tut going to complain? Probably not. We have seen this before in selling Ground and Express together and letting the customer "choose" Ground. It's a no brainer. Free upgrade during peak?Another no brainer.



We have always thought of FDX as running separate opcos. That is how they have always described it and to a degree it's true. On a whole though, we all serve the single purpose of transporting freight for FDX.

Or it could all be more rampant speculation.:)

If they do what you're thinking they might do, it will backfire big-time. Last year's Peak at Express was horrific, as in they could not handle it...at all. Gigantic abortion and crisis mode all the time. Huge operational issues and many DEX 01 (no attempt) packages. Add-in all of the new, worthless couriers we have and DRA...a recipe for disaster. God, I hope they do it. LOFL..."genius".
 

bbsam

Moderator
Staff member
Not really. They can pick and choose. They can use daily projections and act accordingly. We aren't talking plane loads daily. We are talking a trailer running cross state. We are talking a million pieces over three weeks. Sounds like AGFS workers are being trained to drive? It's all about maximizing use of "assets" and that means running Express couriers longer for the first couple weaks. By December 16th, the diversions slow because more will be shipping Express anyway. But Grounds peak will start earlier than Express'. That is their window of opportunity.
 

MAKAVELI

Well-Known Member
Not really. They can pick and choose. They can use daily projections and act accordingly. We aren't talking plane loads daily. We are talking a trailer running cross state. We are talking a million pieces over three weeks. Sounds like AGFS workers are being trained to drive? It's all about maximizing use of "assets" and that means running Express couriers longer for the first couple weaks. By December 16th, the diversions slow because more will be shipping Express anyway. But Grounds peak will start earlier than Express'. That is their window of opportunity.
Just how are they going to make money on automatic upgrade at grounds prices?
 

bbsam

Moderator
Staff member
Because the planes and trucks are running anyway. There is no reason to have couriers working for 10 hours when they can go 14. Why have a truck come back in 10 hours when there's freight to be delivered. Everything is paid for but it has to get delivered. It's pure profit by that time whether it's delivered by a Ground truck or Express.
 

MAKAVELI

Well-Known Member
Because the planes and trucks are running anyway. There is no reason to have couriers working for 10 hours when they can go 14. Why have a truck come back in 10 hours when there's freight to be delivered. Everything is paid for but it has to get delivered. It's pure profit by that time whether it's delivered by a Ground truck or Express.
So an Express courier making around $30 an hour with ot is more profitable than a ground driver making around $13 an hour? Something wrong with this math. I smell bulls hit.
 

MrFedEx

Engorged Member
Because the planes and trucks are running anyway. There is no reason to have couriers working for 10 hours when they can go 14. Why have a truck come back in 10 hours when there's freight to be delivered. Everything is paid for but it has to get delivered. It's pure profit by that time whether it's delivered by a Ground truck or Express.

Again, you don't understand Express. At Peak, it is a cluster, and people will already run out of hours with just the usual Express volume. I can hardly wait for this brilliant idea to happen. What a bunch of fools!! DISASTER.
 

MrFedEx

Engorged Member
Not really. They can pick and choose. They can use daily projections and act accordingly. We aren't talking plane loads daily. We are talking a trailer running cross state. We are talking a million pieces over three weeks. Sounds like AGFS workers are being trained to drive? It's all about maximizing use of "assets" and that means running Express couriers longer for the first couple weaks. By December 16th, the diversions slow because more will be shipping Express anyway. But Grounds peak will start earlier than Express'. That is their window of opportunity.

Did you drink the whole pitcher of the Kool-Aid? Wow, looks good on paper!! Bwwahahahahaha!!
 

MAKAVELI

Well-Known Member
Again, you don't understand Express. At Peak, it is a cluster, and people will already run out of hours with just the usual Express volume. I can hardly wait for this brilliant idea to happen. What a bunch of fools!! DISASTER.
I'm sorry but this makes absolutely no sense. Bb is just trying to throw some bs out there hoping we fall for it.
 

STFXG

Well-Known Member
So an Express courier making around $30 an hour with ot is more profitable than a ground driver making around $13 an hour? Something wrong with this math. I smell bulls hit.

Contractors make much more than $13 an hour... We make more than 30 per hour plus the fuel as well. Fedex would save money doing it this way...
 

bbsam

Moderator
Staff member
Again, you don't understand Express. At Peak, it is a cluster, and people will already run out of hours with just the usual Express volume. I can hardly wait for this brilliant idea to happen. What a bunch of fools!! DISASTER.
Wrong. Ground's peak starts the Monday after Thanksgiving. For 2 and a half weeks after Thanksgiving Express is relatively calm. That's when Express can be fully utilized.
 

bbsam

Moderator
Staff member
So an Express courier making around $30 an hour with ot is more profitable than a ground driver making around $13 an hour? Something wrong with this math. I smell bulls hit.

Ground prices are cheaper than Express, not cheap. It wouldn't be out of the. Realm of possibility for the deliver of one 30 lb. package to easily pay that cost. Throw 15.stops on a truck and Fedex just made an extra $300 just on the extra Ground freight. Easy money.
 

MAKAVELI

Well-Known Member
Wrong. Ground's peak starts the Monday after Thanksgiving. For 2 and a half weeks after Thanksgiving Express is relatively calm. That's when Express can be fully utilized.
Wrong they are expecting our volume to start a major increase the weekend after thanksgiving. Shows how much you know.
 
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