New FedEx service

[targuard86]

I don't get it...it sounds like this might put money in the pocket of the corporation but if FedEx freight is doing the actual moving whats in it for the FCC fleet owners and o/o's?

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FedEx Custom Critical has launched a new service to customers, Surface Expedite Network. A time-definite LTL service, FedEx Custom Critical provides the customer service while FedEx Freight provides the operational side.

Surface Expedite Network is an option for customers when our exclusive-use service isn’t quite what they need. This gives them another option and keeps them from calling one of our competitors. Please be aware that we are still pursuing customers with our exclusive-use services. This is just another option to keep them as FedEx Custom Critical customers.

The main benefit is that it keeps our customers calling us. In the past, they would have gone to a competitor when they didn’t need our service. With Surface Expedite Network, we can keep them as FedEx Custom Critical customers.

For more information, check out the most recent edition of the On Times, or call your contractor coordinator or fleet coordinator.

 

[terryandrene]

Targard:

Look at the bigger picture than that which you posted. If a customer calls FedEx Custom Critical for a quote on moving 4 skids cross country and his budget can't handle the $7000 price tag for a door to door, time sensitive shipment, he'll likely call a "cheap freight" competitor and settle for a delay in delivery more than they originaly desired. If the "cheap freight haulers" did a good job, That customer may never call FedEx Custom Critical again. The suits lose, you lose, and I lose.

Before that customer hangs up, the customer service agent will offer different options to get the freight on a FedEx truck, be it Custom Critical, Freight, or Ground, thereby keeping the customer as a FedEx customer. Next time that customer needs freight hauled, they will likely continue calling FedEx over the competition because FedEx has a shipping solution for them. In the long run, when the customer is happy, the suits win, you win, and I win.

 

[TeamCaffee]

Terry that is exactly how it was explained to us. At first is did not sound as if it would benefit out group and after spending a little time thinking about it and listening to the examples given it sounds good. I believe Virginia said they have been testing this at three hubs and freight is up 50% for Custom Critical. Sounds good to us.

 

[jaminjim]

Okay how much of that 50% increase in freight went on FedEx CC trucks, and how much of it was offered at a reduced rate to you guys. Not saying it is a bad idea, just asking the question.

 

[Moot]

LTL freight has a way of getting lost, mis-routed or delayed. These carriers pump alot of freight through their systems. So when FedEx Ground drops the ball they will have to call in FECC to bail them out. If they want to keep the customer happy.

 

[terryandrene]

I think the 50% increase in freight for FedEx Custom Critical that Teamcaffee said was in regard to freight in the area of the FedEx hub terminals and not nationwide.

All of the FedEx Operating Companies in the Surface Expedite Network (SEN) will stand to gain market share when this initiative is fully implmented. The key to SEN is getting customers and then keeping them happy with an array of services.

 

[ATeam]

At the Louisville truck show, I attended the FedEx breakfast where the FedEx CC big boss explained this new program. I read a report about it in the truck show newspaper, which I later learned was more innacurate than accurate. I talked to two FedEx recruiters about it in two separate conversations. I acquired a copy of the FedEx CC newsletter that includes an article about it.

Sadly, I found all explainations to be vague. Perhaps I'm missing something that other people clearly see, but I'm having a hard time figuring out how the freight we CC drivers see will change, except perhaps in an increased amount of it. Though, no one talked about what impact, if any, this might have on the rates, up or down.

The part about the program that excites me is the fact that the FedEx Freight sales force has been trained up on Custom Critical. As a company, FedEx Freight is relatively new and has grown in large part through the aquisition of other companies. It has taken FedEx an understandable period of time to rebrand the aquired companies and equipment, and streamline operations.

The FedEx Custom Critical sales force is about 55 men and women strong. FedEx Freight has over 600 sales people. Before their recent training, many of them knew little of Custom Critical. Now that they do, and now that mechanisms are in place for easy cross-division referrals, it can only help those of us running with FedEx CC.

 

[davekc]

On the surface it sounds like more freight opportunities but at cheaper rates. I as well am only basing this on the truckshow article. Customer retention sounds like the main objective. The brokers I use have described it as exclusive use LTL. Still sounds pretty new to know exactly what its going to be.






Davekc
owner
21 years
PantherII
EO moderator

 

[bigjoep89]

Concrete truck driver 15 years
Concrete Sales Manager, 13 years.
Expediter One Year
FedEx D6157.

As a retired Sales Manager for a major corporation the one thing I believe I understand is marketing and sales strategies. What FedEx appears to be doing really makes good since to me and here is why.
Many studies have proven that the number one reason a customer leaves your company and goes to another is service. The number two reason is lack of attention from the seller and the third reason is price.
If I understand this new program it covers all three of these issues and in the order of importance.
1. Service with a program that fits the customer needs.
2. Plenty of attention from the seller.
3. A price that won't turn them to a competitor.
I applaud FedEx for taking this proactive approach.
Just my opinion!

God bless our Military and Vets!!!

 

[terryandrene]

On the surface it actually sounds like more freight opportunities, because of customer retention, by the provision of a menu of products that can meet the needs of any customer.

Since the time that Roberts Express was acquired by FedEx, Custom Critical has pretty much been operated as a stand-alone company. It would occasionally rescue freight from its family of operating companies, but for the most part, Custom Critical did not routinely share customers with the family. Now, with the implementation of the Surface Expedite Network, all of the FedEx companies' customer service agents are being trained on a common syllabus so that each agent will be conversant on the products offered by each of the other FedEx companies. The result will be more freight opportunities for the companies and owner/operators alike.

Call me naive, but I believe that each of the FedEx operating companies, including Custom Critical, will continue to charge the same tariffs as in the past. I also believe that our average loaded rate per mile will continue to increase annually, albeit not by much.

 

[ATeam]

>I as well am only basing this on the
>truckshow article.

The truck show paper got it wrong and the article should not be relied upon as accurate. It's an unfortunate case where a newsletter writer or his or her editor failed to fact check the writer's work before it went to print.

 

[hedgehog]

Cheap freight means FedEx will cause the competition to respond with even cheaper freight.

In today's market, customer loyalty is measured by the customer's bottom line $$$$$.

I think we might be whistling past the graveyard.

Be safe.

 

[greg334]

I see that FedEx has dropped the ball – a lack of proper communications.

Not to sell FedEx CC short, they’ve done a great job for me so far.

They are going around announcing things before they figured it all out?

I mean that I asked a question to many people at FedEx, what changes to my revenue will I expect from this change? I got the same answer from everyone – we don’t know what rate changes that will occur when this takes place. So to me it is that a great marketing idea created without thought to the actual people who work and depend on a consistent income. I guess it is a pet peeve for me, big companies not planning on things and not communicating those plans properly.

The other thing that bothers me a lot is that I was told that this is ONLY B UNIT program, not to include c and d units by most of who I asked. But of course the nature of the program does not exclude any class of truck.

And the last thing about the roll out is we as contractors should have been informed about this before anything is published, especially in any truck paper. Many of us FedEx CC contractors have been really nervous about this program but have faith that it will work.

Oh by the way I didn’t make it to the show but I heard that no one asked my question; what changes are we to expect from this program to our revenue? If this is true, well you fill in the blanks - if not I would like to know what was said.

 

[ATeam]

>Oh by the way I didn’t make it to the show but I heard
>that no one asked my question; what changes are we to expect
>from this program to our revenue? If this is true, well you
>fill in the blanks - if not I would like to know what was
>said.

At the FedEx breakfast, information was presented but it was brief. No Q & A followed as the truck show was about to start and most in the room would have wanted to head to it. Several people gathered around the speaker (the big boss at FedEx CC) after breakfast and spoke one on one. I did not. Perhaps someone who did is a forum member and can tell us more.

 

[ATeam]

Jeff Jensen's article about the new service has prompted a new thread about it. The thread is at:

http://www.expeditersonline.com/dcforum/DCForumID1/3819.html

Perhaps the moderators can lock this thread and members can go to the more recent one to share their questions and comments.

 

[davekc]

I mean that I asked a question to many people at FedEx, what changes to my revenue will I expect from this change? I got the same answer from everyone – we don’t know what rate changes that will occur when this takes place. So to me it is that a great marketing idea created without thought to the actual people who work and depend on a consistent income. I guess it is a pet peeve for me, big companies not planning on things and not communicating those plans properly
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As you mentioned, when big companies do these things they likely don't know the impact, or do but choose not to reveal it.
Just based on that article, if you increase your LTL freight and add 400 trucks, you would wonder the results. Even more so if they give the option to the customer to move it at a cheaper rate. The article does say they expect additional expedite freight from the changes.
But as you stated, they are not discussing revenue. I quess you have to read between the lines. The truck show paper article wasn't too far off in their story.














Davekc
owner
21 years
PantherII
EO moderator

 

[joebob1_30132]

I believe fellas this scouring for new markets is a result of the backbone and the origanal need for the expidited services ..GM Ford ..auto made the expediting niche in the transportation industry, with japans just on time inventory practices.. I have to say that con way was way ahead on this.. they have not relied on auto the pay was not as well but ... we go from time to time to the regional con way terminals to pick up frieght ... I have been running the you know what out of Yellow Frieght orders. I have picked up fed-ex frieght sub out to us as well as panther loads .. I believe there is communication between the suits to throw a bone to their rivals when theres not a truck in the area.. keeping the load but taking a hit on the profit..they will never loose sight of the reason they get to sit in the nice builings havethe christmas parties. and wake up in their own beddroom every morning.. THAT WOULD be us.. no drivers ..everything else becomes mute. AS long as there are more loads than trucks we win they need us ..as soon as it dropps we loose

 

[greg334]

Well the JIT has been around for a long time.

I see where this would be a boom for FedEx Corporate but divisionally speaking there is something missing.

I got a great response back from my two emails, one from the VP and the other from some other person but the latter is like a corporate PR robot, I heard the same thing – rates will remain the same but when I ask will my miles per load still stay the same, I never get an answer that makes sense. My worry is that this will be used to move into a different type of program, hub to hub and some may become regional drivers and limit our income potential even further. But let’s see – I may be worried for nothing.

Oh talking about communications problems (not to pick on FedEx CC, I do enjoy working for them) I understand I got a new CC, another reorg – three in five months. I just started to remember my last one’s name. I wish they would tell us of these changes before they happen.

 

[Doggie Daddy]

Only time will tell,but i am thinking that this new program will only increase the amount of cheap freight that is already being offered to us.Also,call me crazy but i don't think that increasing the the size of the fleet from 1400 trucks to 1800 will help my bottom line any.JMO. DD.

 

[davekc]

I would watch purchasing any high dollar equipment. A single driver with a good used truck might make out ok doing LTL if they allow multiple loads and take very little of the rate.





Davekc
owner
21 years
PantherII
EO moderator