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<blockquote data-quote="Ricochet1a" data-source="post: 954494" data-attributes="member: 22880"><p>Already happening - FedEx sales are pushing customers towards using Ground. The differential in margins between Express and Ground have already been discussed.</p><p></p><p></p><p></p><p>Of course Express will offer 2 and 3 day service. The question is who will deliver 2nd and 3rd day volume in the future.</p><p></p><p></p><p></p><p></p><p>Not so, have the ramps change their PM sort from an Express station specific sort to a Ground terminal specific sort. Take the ULDs from the sort, load them into trailers and transport to the Ground terminals. Have the emptied ULDs transported mid-day from the Ground terminals to Express stations for the evening reload. All quite simple.</p><p></p><p></p><p></p><p>Again, quite simple... There would be no absolute prohibition for Express from deliverying non-overnight. The preferred method would be Ground, but if pieces of non-overnight just happened to show up to an Express station, they'd simply deliver it as part of their non Priority Overnight volume (Std. Overnight). If it wasn't feasible in certain geographic locations for non-overnight volume to be shifted over to Ground and still make service, the ramps would forward that volume to Express stations for delivery. It wouldn't be an "absolute" shift, just the overwhelming majority of volume would be shifted. </p><p></p><p></p><p></p><p>No indication of ramp consolidation... can't really happen, ramps are placed for both geographic reasons and to avoid overwhelming single ramps in the larger metro areas.</p><p></p><p>There is a definate trend towards consolidating stations though. With the availability of FedEx Offices to accept Express outbound volume, there is no longer the need (as existed 10+ years ago), to have Express stations located in "medium" sized cities to enable over-the-counter sales (this was one of the main reasons why FedEx bought out Kinkos, not for the copying service, but for the ability to accept volume for both Express and Ground with a small footprint shop). </p><p></p><p>The trend is towards building larger stations, and have FedEx Office take the small volume shippers outbound freight. By the way, FedEx Office pays its employees less than Express pays its CSAs - thus increasing margin on Express product even more. </p><p></p><p>I did ask a CSA about the ratio of volume they accept now (Express to Ground) compared to just a few years ago. The answer (although anecdotal) was illuminating. They are taking less volume over the counter now than they did a number of years ago - BUT, the ratio of Express to Ground has flipped. Most Express CSAs currently process more Ground volume in a given day than Express volume. They are Express employees, but they are doing more Ground package processing than Express. They still obviously tender Express packages that are hold at locations and from customers bringing in door tags. But the piece count for acceptances of packages has now flipped to a majority of Ground. </p><p></p><p>Ask your station CSAs, what is their ratio of Express volume accepted over the counter compared to Ground volume?</p><p></p><p>Find out how much volume is being brought into your station by pickup Couriers from Office stores.</p><p></p><p>Then compare that to how much the Express CSAs accept each day. </p><p></p><p>More Express volume is accepted in Office locations (and brought in by Couriers directly to the reload) than is accepted over-the-counter by Express CSAs. </p><p></p><p>Right there that ought to tell you something about the trend of FedEx "outsourcing" to lower cost alternatives whenever possible. </p><p></p><p>Fifteen years ago (a "bit" before I was in Express...), who would've thought that customers would've tendered shipments to a non-Express location (quasi-FASC) in such large quantities?</p><p></p><p>By the way, Office offers packing services in addition to processing payment and placing shipping labels on packages. Express locations don't offer any packing services, only supplies for customers to do it themselves.</p><p></p><p>And people still wonder where the trend is leading...</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 954494, member: 22880"] Already happening - FedEx sales are pushing customers towards using Ground. The differential in margins between Express and Ground have already been discussed. Of course Express will offer 2 and 3 day service. The question is who will deliver 2nd and 3rd day volume in the future. Not so, have the ramps change their PM sort from an Express station specific sort to a Ground terminal specific sort. Take the ULDs from the sort, load them into trailers and transport to the Ground terminals. Have the emptied ULDs transported mid-day from the Ground terminals to Express stations for the evening reload. All quite simple. Again, quite simple... There would be no absolute prohibition for Express from deliverying non-overnight. The preferred method would be Ground, but if pieces of non-overnight just happened to show up to an Express station, they'd simply deliver it as part of their non Priority Overnight volume (Std. Overnight). If it wasn't feasible in certain geographic locations for non-overnight volume to be shifted over to Ground and still make service, the ramps would forward that volume to Express stations for delivery. It wouldn't be an "absolute" shift, just the overwhelming majority of volume would be shifted. No indication of ramp consolidation... can't really happen, ramps are placed for both geographic reasons and to avoid overwhelming single ramps in the larger metro areas. There is a definate trend towards consolidating stations though. With the availability of FedEx Offices to accept Express outbound volume, there is no longer the need (as existed 10+ years ago), to have Express stations located in "medium" sized cities to enable over-the-counter sales (this was one of the main reasons why FedEx bought out Kinkos, not for the copying service, but for the ability to accept volume for both Express and Ground with a small footprint shop). The trend is towards building larger stations, and have FedEx Office take the small volume shippers outbound freight. By the way, FedEx Office pays its employees less than Express pays its CSAs - thus increasing margin on Express product even more. I did ask a CSA about the ratio of volume they accept now (Express to Ground) compared to just a few years ago. The answer (although anecdotal) was illuminating. They are taking less volume over the counter now than they did a number of years ago - BUT, the ratio of Express to Ground has flipped. Most Express CSAs currently process more Ground volume in a given day than Express volume. They are Express employees, but they are doing more Ground package processing than Express. They still obviously tender Express packages that are hold at locations and from customers bringing in door tags. But the piece count for acceptances of packages has now flipped to a majority of Ground. Ask your station CSAs, what is their ratio of Express volume accepted over the counter compared to Ground volume? Find out how much volume is being brought into your station by pickup Couriers from Office stores. Then compare that to how much the Express CSAs accept each day. More Express volume is accepted in Office locations (and brought in by Couriers directly to the reload) than is accepted over-the-counter by Express CSAs. Right there that ought to tell you something about the trend of FedEx "outsourcing" to lower cost alternatives whenever possible. Fifteen years ago (a "bit" before I was in Express...), who would've thought that customers would've tendered shipments to a non-Express location (quasi-FASC) in such large quantities? By the way, Office offers packing services in addition to processing payment and placing shipping labels on packages. Express locations don't offer any packing services, only supplies for customers to do it themselves. And people still wonder where the trend is leading... [/QUOTE]
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