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XPO | Feedback from St. Louis SCM Conference

had enough said:
Fed ex will be low balling the freight to make it awfully difficult to make this xpo deal to thrive. Good luck boys.
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One of the big rumors going around is that XPO has a freight contract with FedEx. If it were to not be renewed, some of that freight would find it's way I direction. Allegedly.
 
had enough said:
Fed ex will be low balling the freight to make it awfully difficult to make this xpo deal to thrive. Good luck boys.
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It sounds like that is what Conway did trying to put YRCW out of business, and it sounds like that was the biggest mistake that they ever made.
 
This jumped out at me. It wasn't Jacobs that said it, but seemed to be really important.

Also, Con-way probably has more terminals than it needs, John Larkin, lead stock analyst for transportation and logistics at investment bank Stifel, said.
CEO Douglas Stotler and the rest of Con-way’s former management team were “infatuated” with the lean process and couldn’t see the forest for the trees, he explained.
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Sounds like that "LEAN" program might get eliminated. And Jacobs said that the "100" non-profitable terminals better get their crap together, or they'll "get a bullet", and be eliminated.

Interesting to say the least.
 
This is the part of the article that got my attention.

"XPO officials say they plan to introduce an economy LTL service to go along with the legacy Con-way high-velocity service, which will triple the size of the addressable market.
A slower, economy product will enable XPO to shift a substantial portion of line-haul moves to intermodal because deferred delivery is an accepted part of the service. And, Jacobs said, intermodal can even be used for premium freight on dense “power lanes.” "
 
icuicp said:
Are you able to post a link or share where you read this article?
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Google search Brad Jacobs Man of the year and it will take you to the article. Its also up on the employee portal. Sorry, I still can't post a link, I am not tech savy. I can barely type. Hope this works for you.
 
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radman said:
Sorry, this is the article I was talking about where I read about closeing unprofitable terminals. Its in the paragraph where he is writing about what a waste lean is.I should read through the thread before posting. Sorry.
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Here it is......

Jacobs said he ordered Cooper to cordon off about 100 locations, figure out why they were losing money, come up with a plan and a timeframe to fix things and if they were still not performing by that time-definite period “put a bullet in it. Close it down, honor all the contracts. Wind it down and get out of it.
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Northern Flash said:
Here it is......
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If you read about 2 paragraphs above this paragraph in the article, it looks like they are describing a scenario at the Norbert D. aquisition In Europe where some facilities weren't profitable. I don't think this is indicating anything happening at Conway.................yet.
 
vppforme said:
If you read about 2 paragraphs above this paragraph in the article, it looks like they are describing a scenario at the Norbert D. aquisition In Europe where some facilities weren't profitable. I don't think this is indicating anything happening at Conway.................yet.
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I would guess that if they did it in Europe they will do it here. It makes sense, we are either making money or we aren't. I just hope my service center is making money.
 
vppforme said:
If you read about 2 paragraphs above this paragraph in the article, it looks like they are describing a scenario at the Norbert D. aquisition In Europe where some facilities weren't profitable. I don't think this is indicating anything happening at Conway.................yet.
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The entire page is worth reading, twice or more. All xpo/Conway people should read this. Especially the part that says plans for Conway. Mr. Jacobs one comment of Conway was to say Conway has a few too many terminals and they are not all in the profit zone. He will locate them and try to make them swing a profit in a certain amount of time, as the story also said he did this at ND. I would not panic yet, he may be able to make them all profitable and close nothing. As far as line haul he says he will balance the lanes with his other companies. Take that to mean anything you want. If it is with more freight to balance the lanes, then great news. If you take it to mean other companies will help haul your freight, than that could be bad. I wish you all the best. Take this to bed with you, He did not buy Conway to destroy it.
 
Northern Flash said:
This jumped out at me. It wasn't Jacobs that said it, but seemed to be really important.



Sounds like that "LEAN" program might get eliminated. And Jacobs said that the "100" non-profitable terminals better get their crap together, or they'll "get a bullet", and be eliminated.

Interesting to say the least.
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A bunch of the drivers at some terminals around me are already planning where they want to dovetail into. They need to be busting their ass to improve their current situation. The way we are currently staffed with the slow down, I am not sure how many would even be offered jobs.
 
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