Where do you see FedEx in 5 years? (ISP specifically, but not limited)

59 Dano

I just want to make friends!
A honest question deserves an honest answer.
Roadway Package System was designed to be a strictly business to business carrier serving a niche market . When Fat Freddy got a hold of it he tried to make it become all things to all people and serve multiple markets. It was never designed for that and fractures in the network are likely to become more numerous.

Express was designed to be a strictly b2b carrier as well. Then it expanded to residential as well, just like Ground/RPS. Both work well and both make plenty of money.

The simple fact is they make all their money off of Ground

FY 2017
Express gross revenue / profit: $27.3 billion / $2.6 billion
Ground gross revenue / profit: $18.0 billion / $2.2 billion
 

Oldfart

Well-Known Member
Express was designed to be a strictly b2b carrier as well. Then it expanded to residential as well, just like Ground/RPS. Both work well and both make plenty of money.



FY 2017
Express gross revenue / profit: $27.3 billion / $2.6 billion
Ground gross revenue / profit: $18.0 billion / $2.2 billion
Bacha just can't catch a break spewing out his $ facts.

While Ground has a higher return, Express still makes more $. He just can't understand that.
 

bbsam

Moderator
Staff member
Bacha just can't catch a break spewing out his $ facts.

While Ground has a higher return, Express still makes more $. He just can't understand that.
But spending an extra 9 billion and change to make an extra $400,000,000?

May as well spend the $9billion buying up every possible powerball combination.
 

Oldfart

Well-Known Member
But spending an extra 9 billion and change to make an extra $400,000,000?

May as well spend the $9billion buying up every possible powerball combination.
If you will read my post, I stated Ground had a higher % of return. Express has made a big improvement with return the last few years. Ground was about 13% and Express was not quite 10%. Wasn't that long ago Express was under 6% and I believe Ground was over 15%. Maybe bacha can join in and spew his opinion other than to say "they make all their money on Ground". Not quite.
 

Exec32

Well-Known Member
Been thinking long and hard about this one lately. Been reading about a lot of problems many people across the nation are having (finding drivers, load qualities, etc.) I guess my question to everyone is where do you see this company heading in 5 years? Will ISP still be around or is it another derail until they finally realize they have to do away with it once and for all? We didn't go Orange for no reason. The days of no benefits and low pay can't last too much longer under these conditions and I do as much as I can for my own guys before myself each and every single day.

To elaborate where my building stands, we have been receiving multiple 27's from station management looking to cover their backs and pinning it on us without even notifying us, which I think is wrong personally since it affects our CSA. I've been monitoring my service every single day from here on out and follow up with any thing I find sketchy immediately. Drivers are getting fed up between oversize and load issues (both Ground and HD) and are very close to walking. Drivers wanting more money which we can't give. What more can we do to provide stability and reassurance that we are able to fix it for them when management won't fix their problems? Then blame us and take our contract if a driver walks and you can't get no resources in place because they want to fiddle around with the process... For some drivers it isn't even a money issue. Is there to be a fallout or strike from this model sooner or later? Can't blame the contractor if all the drivers start running the show from multiple ISP's and calling shots.

Again, this is just observation from what's been going on in my building. I'm not looking at calling anyone out how they run their business or any of that. I'm just asking for insight on what people feel the end game is with FedEx once and for all. It's just interesting what I see and hear from other employees every day who aren't my own.

ISP is not sustainable. X IS NOT your partner, they do not operate in good faith and their only objective is to get more from you for less. If you accept that then you should conclude that it is only going to get worse. It is not sustainable because you cannot achieve the revenue necessary to support your business. Why? X IS NOT IN IT FOR THE LONG TERM. They will squeeze you, fill their pockets, convince you to invest and grow, while laughing at you behind closed doors.
The main reason s X will eliminate this model:

1. BRANDING - contractors have the worst reputation in the industry, and by association X now does too. Your Brand takes years to achieve, and only a short time destroy. Contractors it's not your fault, X can only get what they pay for.

2. Competition - Amazon has enough cash now to buy X outright. USPS has now become a 7 day P&D company. The introduction of another competitor on the national stage, and the continued efficiencies of others have created grave concerns for X forecast.

3. Customer expectations - they want it now, and they want to know where it is. Recent developments in technology, and extremely proficient performance by competitors have rendered X model obsolete for the long term. The element of control you must have over your network to achieve the same results have exceeded what is allowed by law under the X model.

These are just a few reasons. Believe this, X will tell you grow, invest, your the man, nobody does it like you, these are all tactics to encourage you to keep hope alive. X NEEDS MORE TIME. And most of you will give it to them. You will then find yourself in debt with useless equipment, and a ton of liabilities.
X will consolidate their services, or be sold. These are the only 2 long term viable options. Not if, just when..
 

bacha29

Well-Known Member
6 years 8 months and 3 days....
It comes down to one simple sentence ......."Know when to go"..Too many contractors believe that they'll be able to walk away with a king's ransom. What are they basing it on? Go onto those route broker sites and you'll see routes that have been on there for more than year. What does that tell you? It tells you that the investor class sees the same thing you do. They see the same powerful forces emerging in the market along with a company that is reestablishing the same strict command and control that got them into trouble in the first place.

In the end the entire success of a contractor still comes down to getting people to work for nothing. Matching and exceeding what the average UPS route driver does in a day and do it for a fraction of the overall compensation. Nothing else matters and if you can't find that person to offer up to XG or the person you have to offer is rejected by X........then you're no longer a contractor. Simple as that. Furthermore, if you think that this condition exists only at Ground well....consider this.

The other day I saw on one of the nationwide jobs boards an ad from an investor class Custom Critical contractor. This guy was desperately seeking Class A and Class B hammer down, pedal to the metal expedited freight jocks . His pay offer? Get ready for this one.........$120 a day. All straight time. No healthcare. No pension. No overtime. No meal allowance. No mention of even being willing to pay highway tolls. Likewise no mention of whether the guy's going to get paid to sit there for days on end at an assigned location waiting for the call to drive to his next load.

Good luck with your recruitment efforts pal....... Looks like Ground cancer is spreading to other OPCO's .
 

59 Dano

I just want to make friends!
But spending an extra 9 billion and change to make an extra $400,000,000?

This is the wonk in me coming out. That $9 billion gets them way more than $400,000,000. If they don't spend that $9 billion they probably operate at a loss.
 

bbsam

Moderator
Staff member
This is the wonk in me coming out. That $9 billion gets them way more than $400,000,000. If they don't spend that $9 billion they probably operate at a loss.
But if they spend that $9 billion in Ground, do they make $3 billion?
 

Exec32

Well-Known Member
It comes down to one simple sentence ......."Know when to go"..Too many contractors believe that they'll be able to walk away with a king's ransom. What are they basing it on? Go onto those route broker sites and you'll see routes that have been on there for more than year. What does that tell you? It tells you that the investor class sees the same thing you do. They see the same powerful forces emerging in the market along with a company that is reestablishing the same strict command and control that got them into trouble in the first place.

In the end the entire success of a contractor still comes down to getting people to work for nothing. Matching and exceeding what the average UPS route driver does in a day and do it for a fraction of the overall compensation. Nothing else matters and if you can't find that person to offer up to XG or the person you have to offer is rejected by X........then you're no longer a contractor. Simple as that. Furthermore, if you think that this condition exists only at Ground well....consider this.

The other day I saw on one of the nationwide jobs boards an ad from an investor class Custom Critical contractor. This guy was desperately seeking Class A and Class B hammer down, pedal to the metal expedited freight jocks . His pay offer? Get ready for this one.........$120 a day. All straight time. No healthcare. No pension. No overtime. No meal allowance. No mention of even being willing to pay highway tolls. Likewise no mention of whether the guy's going to get paid to sit there for days on end at an assigned location waiting for the call to drive to his next load.

Good luck with your recruitment efforts pal....... Looks like Ground cancer is spreading to other OPCO's .

120 a day, LOL. Sign me up. Very important but often ignored item, X consent to reassignment. There is nothing in the contract that describes the consent process, the limitations, or the criteria evaluated to approve or reject. That alone is insane. If X has a buyer or co#ksucke# on the side, then you are screwed..
 

bacha29

Well-Known Member
120 a day, LOL. Sign me up. Very important but often ignored item, X consent to reassignment. There is nothing in the contract that describes the consent process, the limitations, or the criteria evaluated to approve or reject. That alone is insane. If X has a buyer or co#ksucke# on the side, then you are screwed..
Indeed. It is simply astounding how little attention contractors pay to the terms ( or the lack thereof) of their contract. When X tells them that they either put more money at risk it's either do so or it's....." Say hello to the guy who's taking over your routes. Is he going to pay you for them? Nah, he has his own trucks and approved manpower and as for your proprietary rights? Don't you get it? We just revoked them. The reason for doing so? Well, we just don't like you and furthermore there are no contract terms that says we have to give you a reason"....
 

instiches

Well-Known Member
Not the first $10k

Then again, when’s the last time one of your drivers did $10k damage backing up?

I had a driver who had a minor backing incident in a parking lot. Lightly struck the side of a car passing behind. Put about a 3 inch scratch on our cargo van's bumper. The claimants car had a bunch of pre-existing dents and damage all along the side of their car that was struck. FedEx's insurance company decided that was all relevant damage to the accident and fixed it for about 5k. Charged me the 2k. I fought it hard and all FedEx management and safety could say was "Yeah we agree with you, but it looks like they took advantage of the system"
 
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