Some do. But most don't. Reference Wal Mart and Amazon to start with and then well just common sense, since most aren't making more money and costs in general are rising. Gucci should ship Express and if they don't that's a sad joke to.
There will always be a market for premium services, but suppliers have to actually provide those services...reliably. Express can't do that. Just ask the surgery patient who doesn't get his 0800 FO package until mid-afternoon. Fred doesn't care, but that patient and his doctor do.
Fred has strapped a Ferrari body onto a Yugo chassis and hopes nobody notices the difference...they do.
Fedex Express is still the #1 leader in overnight deliveries I believe. I have to assume a ton of medical companies are using Fedex. So when you say
"Express can't do that. Just ask the surgery patient who doesn't get his 0800 FO package until mid-afternoon" sure that happens at times. But how many times? And how often are surgeons scheduling surgery the day the parts arrive? And why are they that irresponsible understanding logistics?
But in general, most of the time it does make it on-time. And no one is really doing it better, equal perhaps, but not better. IMO and I'm sorry that you don't like this, you are still the state of Overnight, it's accepted and it is used. It's not like there isn't Express Business, it's just that it's not a large growing sector anymore. Like HP, they still build a ton of PC's, it's just not a growth sector and that is where Shareholders can mess up well oiled operations simply because sustainable growth is no longer possible in a saturated market and that is all they care about. That part does upset me.
The real reason why there isn't growth is cost, you have those that are willing to pay or able to pay for premium services already in your pocket. If you dropped your price Express price to ground levels, you'd see crazy growth, but then you are losing money. For your world to be right, if you dropped cost to ground levels you wouldn't see sustained growth because your service just sucks so bad, no one wants it. That isn't the case. It's cost.
From my position we have never considered dropping Fedex Express service because of your performance. If it was that bad, we'd get the feedback and we would start considering over a pretty substantial period of time. This just doesn't come up, it's not a problem for us, it's not perfect, but it's acceptable.
It isn't what you want to hear, but think about it. If you were that bad, your business would really dry up. I can go grab financials and see that not only Express isn't shrinking, but revenue wise it is still growing some. So when someone thinks their argument is right, you have a scoreboard that is published every 3 months. You can see people are not running fast from the service you supply. Shouldn't that just be the bottom line in a discussion like this?
