Interesting Interview

[tallcal101]

I'm interested in others response to the interview with the current CEO of FECC that appears on this weeks home page.
It seems the current CEO ansewers questions in the very same fashion that the former CEO answered similar questions."The futures so bright your going to need shades".Not much detail,but then again who needs details to make sound business decisions for their small business,paticularly in the booming expedite business.

 

[ATeam]

One thing that jumped out for me was her comment, "I know that our independent contractors had concerns when we launched (Surface Expedite Network) originally, concerns about the intent of the service, but it has been nothing but good for our surface and air expedite programs. We get some White Glove shipments through there, but the preponderance of freight is Surface Expedite."

It shows she is aware of some of the issues discussed here in the Open Forum. That is further demonstrated with her saying, "Also, at the beginning of the year, we launched FedEx Truckload Brokerage, a pure brokerage situation. It is a totally different model than FedEx Custom Critical, one that is not in competition with our company. These shipments are true truckload with longer delivery time frames and repeat lanes. They are not expedited moves and do not affect our independent contractors."

Regarding the bright future comments, what else would you expect from a CEO in a public interview? If she didn't see a bright future for FedEx Custom Critical, she would not be the CEO. The fact that FedEx Custom Critical is a major EO sponsor also enters in. This is not a place from which to expect gotchya reporting or investigative journalism. That is not what EO is about.

 

[tallcal101]

In other words,details like business levels and realistic projections for the industry(21 years in,she knows plenty)are just not that important.You know,it's the same thing recruiters for this company are told to say,"keep the details to a minimum,stress the generalities and be sure to wear shades".
I agree,CEO's are not paid to tell it like it is,I understand that.But I just felt most of this interview was right off the script,the "don't vear off the track" script.I still maintain truck load brokerage is not in CC's best interest,based on the way it has been promoted to me.Others may have a different opinion.It's a big company and thats the botton line.I have always maintained I have the utmost respect for this woman and all her hard work and dedication,not to mention committment.She is a first class individual.

 

[ATeam]

>In other words,details like business levels and realistic
>projections for the industry(21 years in,she knows
>plenty)are just not that important.

No. That is not what I am saying at all.

Of course business levels and realistic projections for the industry are important. But they are not something I would expect to see in a public interview. We see them in publicly held companies where the law mandates a certain amount of transparency. We don't see them in private expediting companies or in Custom Critical, a tiny division within larger and publicly held FedEx. Such is life among expediting carriers.

One possible exception is Express-1, market symbol XPO. Their 10Q and 10K reports provide interesting reading. I'd love to see the same from all expediting carriers. However, the fact that Express-1 reveals much and other expedite carriers reveal little does not seem to make much difference in how fleet owners and owner-operators lease their trucks. Other considerations seem to trump carrier transparency.

See Express-1's annual report for an example of the transparency I am talking about:

http://www.express-1.com/Library/AR-2006.pdf

Item 7, the section entitled "MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" is especially interesting.

 

[greg334]

I am going to throw in something.

Phil, I understand where you are coming from but out of both of your posts, the one thing that really got to me is this; "The fact that FedEx Custom Critical is a major EO sponsor also enters in. This is not a place from which to expect gotchya reporting or investigative journalism. That is not what EO is about."

Well granted that FedEx is a major sponsor, and maybe this will step on the toes of Lawrence so sorry Lawrence but when you write an article for an interview, the sponsorship needs to be removed out of the interview otherwise it can look like plain advertising which does no one any good. The thing is, EO is set apart from others and Jeff did a good job but she knows what to say and how to say it regardless who is asking or why. To ask questions that will benefit the membership of the site is not gotchya reporting but rather good journalism. Sorry Lawrence.

Personally I would like to hear more about this phantom drivers council in more informative and useful way from the company and see how it can be changed to reflect the changes within the bigger picture of our world and how we can actually leverage it for us, the general population of CC.

 

[davekc]

Personally I would like to hear more about this phantom drivers council in more informative and useful way from the company and see how it can be changed to reflect the changes within the bigger picture of our world and how we can actually leverage it for us, the general population of CC.
=============================================
I think that is where Talcal was going. To think these other startup divisions have no effect on another one is hilarious.
Just look at how they approach existing customers.
But in all fairness, that can't be answered any differently than she did.
"Watch what they do, rather than what they say".












Davekc
owner
23 years
PantherII
EO moderator

 

[greg334]

Oh I agree Dave.

I just don't know how to find the answers I have been seeking on that higher level and see where the pitfalls of big companies are and how they can be solved here with FedEx.

I don't think the effectiveness of any liaison program can be archived unless there is disclosure or at minimal communications established with an explanation of who what where and why - oh and how discussed.

Maybe I am a cynic and always look for the negatives to find ways to improve things.

 

[davekc]

I understand what you mean. Usually in those cases it becomes "follow the money" CC is a value added service. Their core business is overnight and LTL. That is what they pitch to the shareholders. (We are one).
If I knew nothing of this business based on their information, I would know more about Kinkos than CC.
That is why you have these new brokerage and LTL divisions.
The purchase of Watkins was another one.










Davekc
owner
23 years
PantherII
EO moderator