Too much business SORRY

vantexan

Well-Known Member
FedEx was almost exclusively B2B for years because the average resi delivery costs more to service than the average business delivery.
FedEx purchased and further developed a ground operation with significantly lower operational costs in large part because it would give them a much cheaper avenue to service residential addresses.
::sigh::

Why didn't you include everything you said Dano? You said FedEx was almost exclusively B2B for years. When was that exactly? When was Ground developed to the point it gave them a much cheaper avenue? I became a FT courier in May '88. From there in my transfers around the country I saw very few rts that were almost exclusively B2B. And those were industrial park rts or downtown office rts.
 

59 Dano

I just want to make friends!
::sigh::

Why didn't you include everything you said Dano?

How do I not include everything I said when it was posted for you to misread?

You said FedEx was almost exclusively B2B for years. When was that exactly? When was Ground developed to the point it gave them a much cheaper avenue? I became a FT courier in May '88. From there in my transfers around the country I saw very few rts that were almost exclusively B2B. And those were industrial park rts or downtown office rts.

The first half-dozen or so years when the service was explicitly marketed as the (expensive) solution to the most urgent business needs. That was the point, as the service was cost prohibitive to serve any real benefit to the average person and the company had to operate effectively and grow in those more productive environments before it could afford to expand. It wasn't until the 80s that FedEx started more aggressively expanding direct operations (as opposed to using third party cartage agents) into those MSAs that sorely lacked density of businesses. Not long after that that the company dropped the "business" from "door-to-door delivery of business goods" in its description of business in its annual reports.
 

vantexan

Well-Known Member
How do I not include everything I said when it was posted for you to misread?



The first half-dozen or so years when the service was explicitly marketed as the (expensive) solution to the most urgent business needs. That was the point, as the service was cost prohibitive to serve any real benefit to the average person and the company had to operate effectively and grow in those more productive environments before it could afford to expand. It wasn't until the 80s that FedEx started more aggressively expanding direct operations (as opposed to using third party cartage agents) into those MSAs that sorely lacked density of businesses. Not long after that that the company dropped the "business" from "door-to-door delivery of business goods" in its description of business in its annual reports.
If anything Ground was developed to take the bulk that Express was delivering because it's much more profitable to truck it than fly it. Resulted in downsizing most of the Express delivery fleet that is still delivering a lot of residential. A lot of years went by between the 70's and when Ground infrastructure was built up enough to make a difference. Bottom line FedEx is happy to see any pkg outside of haz and international go by Ground. The day may come when Express is stocked by part-timers driving even smaller vans than Sprinters with stations having a few large stepvans set aside in case a local business wants to ship bulk overnight.
 

59 Dano

I just want to make friends!
If anything Ground was developed to take the bulk that Express was delivering because it's much more profitable to truck it than fly it. Resulted in downsizing most of the Express delivery fleet that is still delivering a lot of residential. A lot of years went by between the 70's and when Ground infrastructure was built up enough to make a difference. Bottom line FedEx is happy to see any pkg outside of haz and international go by Ground. The day may come when Express is stocked by part-timers driving even smaller vans than Sprinters with stations having a few large stepvans set aside in case a local business wants to ship bulk overnight.

The average resi delivery is costs more to deliver than the average business delivery. One or the other is going to have a higher average cost, and the company is going to make a stronger effort at reducing the expense of the one that costs them more. I don't know why that rubs people the wrong way, but it does. Well, I do, but still.
 

vantexan

Well-Known Member
The average resi delivery is costs more to deliver than the average business delivery. One or the other is going to have a higher average cost, and the company is going to make a stronger effort at reducing the expense of the one that costs them more. I don't know why that rubs people the wrong way, but it does. Well, I do, but still.
Doesn't rub me the wrong way. But shippers choose which division to ship it by, not FedEx. FedEx incentivizes shippers to choose Ground with lower costs but then big Express shippers get reduced rates too.
 

falcon back

Well-Known Member
Doesn't rub me the wrong way. But shippers choose which division to ship it by, not FedEx. FedEx incentivizes shippers to choose Ground with lower costs but then big Express shippers get reduced rates too.
With the company now having Ground to deliver Express and Freight pulling Ground trailers, at some point the customer just might decide how fast they need the delivery and the company will decide which division will handle the shipment. That is beginning to happen now and will only increase with time.
 

vantexan

Well-Known Member
With the company now having Ground to deliver Express and Freight pulling Ground trailers, at some point the customer just might decide how fast they need the delivery and the company will decide which division will handle the shipment. That is beginning to happen now and will only increase with time.
Freight is pulling Ground trailers? Thought contractors ran those Ground rigs?
 

vantexan

Well-Known Member
Do they choose for Ground to deliver resi for Express? I haven't seen that option on an airbill but it's happening.
And if Ground meets the commit time all is well. It was Express that picked it up, transported it. If Ground handles the last mile on time the customer is satisfied. Day comes a customer pays for Express service and a Ground guy shows up to pick it up, gets trucked instead of flown, and it arrives late the company will start losing customers. Might even have a lawsuit or two happen.
 

falcon back

Well-Known Member
And if Ground meets the commit time all is well. It was Express that picked it up, transported it. If Ground handles the last mile on time the customer is satisfied. Day comes a customer pays for Express service and a Ground guy shows up to pick it up, gets trucked instead of flown, and it arrives late the company will start losing customers. Might even have a lawsuit or two happen.
Lawsuit. LOL? Now you are the Walmart parking lot attorney. What law says Express must transport your package from pu to delivery.

What time is lights out for you and the other homeless at the Walmart parking lot?
 

59 Dano

I just want to make friends!
Day comes a customer pays for Express service and a Ground guy shows up to pick it up, gets trucked instead of flown, and it arrives late the company will start losing customers. Might even have a lawsuit or two happen.

LOL. Lawsuit over what?
 
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