XPO | Feedback from St. Louis SCM Conference

The only way a company can grow is thru growth. The current levels of premium freight we haul will expand once the XPO freight comes our way. More freight means more line-haul. Add in economy freight moving by rail, and that still adds jobs. We have to get it from the customer to the terminal, and from the terminal to the rail yard.
 
I talked to my sales guy at my barn and told him about this possibility of FED-EX underpricing XPO to keep Mr. Jacobs from scaling up his business and cutting into FDX's market share. My sales guy told me that there is sooooo much misinformation, deception, rumors, disinformation etc. about what XPO's future is going to be in a few years relative the competition, i.e. FDX and other major LTL players. My sales guy basically said that all the junk and trash talk is just that and don't be too concerned what our competition says they are going to do us. He further stated that , Mr. Jacobs has a plan and is in the process of putting all the pieces of his puzzle together.


Of course the guy has a plan. We are dying to know the plan. FedEx hauls stuff for free all the time. Steal freight like crazy doing that. It's okay. We shouldn't be looking to be competitive in the free freight market.
 
Sounds good to me...I deliver U-line packaging stuff to a 'XPO Last Mile' furniture warehouse about once a week. I'm sure if FDX FRT. delivers any small furniture pcs here, it would be alright w/ me if those pcs got delivered through our LTL system instead. Next time I see this last mile receiver I'll have to get the scoop on what's going on relative to FDX dropping off freight at his whse.


That's another thing. This guy keeps talking about how good he is at integration. When you go to all these places he has bought ( us included ). No one really has any feeling or sense of oneness. When will that gear catch ? When will all these parts come together and function as one ?
 
L/H will definitely be different than what it is now...but we're looking at least two years down the road before 'Economy Freight' comes into play w/I Mr. Jacobs' system. And no doubt that this is a real legitimate concern for all current L/H drivers looking towards their future if a lot of containers take their work. Another related concern that I have is 'terminal space.'' If XPO outgrows it's existing sic centers by adding economy freight, how will the current sic centers be able to handle and process all the combined premium and economy freight together??? I talked to our regional manager recently and he said that we are currently running around 80% capacity w/just priority freight. So, I hope Mr. Jacobs' got it all figured out...cause I don't. That probably why I'm just a 'dumb truck driver.' and not a business whizzzzzz!!!

He owns so many buildings in so many cities. You could have situations where he has multiple terminals for all the different freight that comes in or out of an area.
 
The only way a company can grow is thru growth. The current levels of premium freight we haul will expand once the XPO freight comes our way. More freight means more line-haul. Add in economy freight moving by rail, and that still adds jobs. We have to get it from the customer to the terminal, and from the terminal to the rail yard.


It's all about volume. Can he find us enough work ?

I am sure he will be successful. But, will I be ?
 
I bumped into our SMC this morning at my barn and asked how the conference went. He said that Mr. Jacobs' concern for dsr's was their retention. "And what was said about how he plans on retaining drivers," I asked. 1). Wages- Mr Jacobs wants to make sure that his drivers are happy w/ what they earn at XPO. So apparently, he will not only maintain what we're getting now and through 2016, but will keep them competitive, if not above industry scale, well into the future. 2). DSR Skin in the Game- My TM said that Mr. Jacobs wants drivers to have some of their 'skin in the game.'...meaning that there could be some kind of incentive for drivers to give a little extra to get a little extra...meaning???...no details.

Anybody else hear any other interesting tidbits from the TM conference??? Any thoughts???

Want to see some youtube shorts on the 'Sales summit- 2015" or the 'Operations Summit- 2015'? check this site
 
We have had operations managers and sales have conferences. I imagine that informational meetings of some kind will happen for drivers and other support personnel ( it takes time these are very large groups )

Has anyone heard what will become of the LEAN TEAM? I know info is hard to come by but I think someone may have abducted our LEAN TEAM. They used to always be kinda there , in my way , in plain site , while I was busy - you know , working. Now , I'm worried. I haven't seen them in quite awhile.... What gives? What will happen to the LEAN TEAM?
 
They're only sticking those cheap mailbox XPO stickers on the tractors because they don't want to stick a ton of money into the LTL. The stickers are on there to keep the workforce at ease while behind close doors they're looking for a buyer. This is far from over.
 
They're only sticking those cheap mailbox XPO stickers on the tractors because they don't want to stick a ton of money into the LTL. The stickers are on there to keep the workforce at ease while behind close doors they're looking for a buyer. This is far from over.
We got your point already. XPO is going to sell off everything but Menlo. How many times are you going to say the same thing?
 
We got your point already. XPO is going to sell off everything but Menlo. How many times are you going to say the same thing?
Rumor is they are trying to work out a deal with fedex, only a rumor, as a driver why have they not told us anything?? Makes a guy wonder this may not turn out good!!!
 
Rumor is they are trying to work out a deal with fedex, only a rumor, as a driver why have they not told us anything?? Makes a guy wonder this may not turn out good!!!
Had Enough is a troll and he wants to get us stirred up so that we will feed him. Remember to not feed the troll. Did you read the article about Jacobs? He makes it very clear that he is going to build a global brand and we are part of that brand.
 
Has anyone heard what will become of the LEAN TEAM? I know info is hard to come by but I think someone may have abducted our LEAN TEAM. They used to always be kinda there , in my way , in plain site , while I was busy - you know , working. Now , I'm worried. I haven't seen them in quite awhile.... What gives? What will happen to the LEAN TEAM?
LEAN is done for the year due to the budget cuts. I think it will return in a different form next year. Some of the projects that helped operations will stay.
 
LEAN is done for the year due to the budget cuts. I think it will return in a different form next year. Some of the projects that helped operations will stay.
I heard from my TM, because I can't stand the waste lean generates, what the plan is for lean. Xpo uses a version of lean. But it's only used in static processes; billing, paperwork, shop, office, etc. Which is the only place it should have been used with us. I'm sure they will take what works, and dump the rest.
 
Had Enough is a troll and he wants to get us stirred up so that we will feed him. Remember to not feed the troll. Did you read the article about Jacobs? He makes it very clear that he is going to build a global brand and we are part of that brand.
Absolutely. He's on my watch list. Ignore him. Let me deal with him.
 
We have had operations managers and sales have conferences. I imagine that informational meetings of some kind will happen for drivers and other support personnel ( it takes time these are very large groups )

Has anyone heard what will become of the LEAN TEAM? I know info is hard to come by but I think someone may have abducted our LEAN TEAM. They used to always be kinda there , in my way , in plain site , while I was busy - you know , working. Now , I'm worried. I haven't seen them in quite awhile.... What gives? What will happen to the LEAN TEAM?

All the sudden, our biggest desk dweller moved 1.4 million pounds in the city. They are in the know. And they are scared. So, that tells me a lot.
 
Rumor is they are trying to work out a deal with fedex, only a rumor, as a driver why have they not told us anything?? Makes a guy wonder this may not turn out good!!!


Have heard this rumor. I don't know why FedEx would waste it's time with this. Seems like a step back for them.
 
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