Fed Ex running 7 days a week?
Discussion in 'FedEx' started by Dennixx, Oct 17, 2019.
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The megas have moved in on alot of the work. No contractor can move it cheaper and has the overhead that the megas do.buddyd157 Thanks this.
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FedEx plans to deliver packages seven days a week starting next January as it tries to keep up with the continuing boom in online shopping.
The company is also taking back nearly 2 million daily deliveries to homes that are currently handled by the post office in a move it says will increase the efficiency of its own network. -
that's what i meant about private contractors....not an individual o/o.
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Oh I see, well there are give and takes to both ends. I think they would be better off running their own fleet with the megas coming in during peak season. It's hard to beat a well oiled private fleet for efficiency, total control, and tax breaks.
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now, let's "look at it" at another angle..
costs.
cost to hire, cost of equipment, cost of insurance or self insurance, lawsuits from accidents, etc,etc.
what would be the hiring criteria?? student drivers, 5-10 years experienced drivers? driver-trainers?
shop, shop services, mechanics, breakdown service, all which require manpower, at a cost.
cheaper in the long run to hire out contractors (mega fleets) that can control those costs, and free up the main company from lawsuits in accidents.
i had applied for jobs up here, that were private fleet, one was a brass company, that made bullet shells and other brass products for the home. small fleet, served only themselves.. truck the products up and down the east coast. pick up materials and bring them back.
they went private contractors, fired all the drivers, got rid of all the equipment, and saved a bundle on all costs.
so yes, a private fleet can be controlled, but, there are variables that unless they adhere to 1000% like the workers, it'll be a costly mistake to go that route, over hiring out. -
I've seen this experiment in a certain way. I worked dedicated for a car make in TN. That car maker used various trucking companies for a certain small amount of freight coming from very distant suppliers. The companies that moved that freight TRIED to cover some of those moves using their OTR drivers that happened to be in the right place at the right time, even though the contract with the car makes prohibited that being done.
When you have a big system like FedEx or a manufacturer that have very tight deadlines for certain actions to happen NO. MATTER. WHAT. they cannot rely on non-dedicated supppliers and OTR drivers/companies. Those OTR type companies and drivers have been serving other customers with various schedules for days or weeks and there is too much uncertainty with them to meet a hardcore Just-In-Time schedule. When the OTR driver shows up he can have from 0 to 11 hours available depending on what happened to bring him to the starting point. With dedicated that driver shows up with a known amount of driving time available and a very near certainty that's just not available with OTR fill-ins. -
Exactly private fleet takes alot of the unknowns out. Way back when I was on a mega fleet that pulled for Amazon. Biggest issue we ran into was all the trucks would be scheduled for around the same time. You would show up and wait, wait and wait. Meanwhile your clock has already started and now you are running under the gun.
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The privet fleets work extremely well in high end/ high risk applications. Most all of your chemical/cryogenic/specialized gas producers run private fleets. From the cradle to the grave as they call it, you have complete control of the product.buddyd157 Thanks this.
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All delivery entities are moving to 7 day availability on delivery. UPS, Fedex, Amazon Post Office. This transition will take place from Nov thru the beginning of next year depending on the company. FedEx groung will start Nov 1st.
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