When we are talking about operating ratio. Roadway told us we were most profitable with our long distance freight.
Bring back empowerment.
When we are talking about operating ratio. Roadway told us we were most profitable with our long distance freight.
Rate increases might result in some lost freight, in contrast lower rates might result in gained freight. Raising rates and losing some freight does not equate to an increase in the OR. If it did it would be profitable to haul more for less. But...wait, isn't that their business model? Haul more for less, hows that working for them?Over simplifying things and looking strictly at Revenue and O/R they would have had to increase rates by 4.4% to be profitable while not losing a single ounce of business in the process. If they hit every single client with a 5.4% rate increase (same % increase as ABF) they could only lose 1 out of every 100 shipments to a competitor before overall revenue would drop. In a very price sensitive industry that's a tough nut to crack, especially when you are unable to sell better service times and/or better claims ratios. You are able to compete on price and that's a slippery slope.
Ladies and gentlemen:
YRCF had a horrible 1st quarter because of weather, because of the residue from a botched change of operations, because of strained customer relations, and a few other factors. To say that Yellow has ALWAYS lost money (been a parasite), etc etc. is pure BS. In 2003, when Yellow Corp bought Roadway, Big R was sinking faster than the Titanic. After that, Zollars and his merry men screwed up LOTS of things for which we're all paying today.
Do we want our 15%, our retirement 75% and our vacation time back? I know that I do. There's only one way to make that happen. We have to put our noses to the grindstone, do our jobs, do them really well, demand that the management either do likewise or get the %$#@ out of our way, make this place profitable, and then rightfully demand our money. Anything else is whining to somebody who isn't going to do anything about it. Everybody got that????
I hear it. I've been around a while and always paid attention to our competitors numbers. ABF used to give us quarterly reports comparing us all and I never recall the big "R" being in the red. Mid to high 90s is my recollection. I do like information and data though so if you have anything to the contrary I would like to digest it.Ladies and gentlemen:
YRCF had a horrible 1st quarter because of weather, because of the residue from a botched change of operations, because of strained customer relations, and a few other factors. To say that Yellow has ALWAYS lost money (been a parasite), etc etc. is pure BS. In 2003, when Yellow Corp bought Roadway, Big R was sinking faster than the Titanic. After that, Zollars and his merry men screwed up LOTS of things for which we're all paying today.
Do we want our 15%, our retirement 75% and our vacation time back? I know that I do. There's only one way to make that happen. We have to put our noses to the grindstone, do our jobs, do them really well, demand that the management either do likewise or get the %$#@ out of our way, make this place profitable, and then rightfully demand our money. Anything else is whining to somebody who isn't going to do anything about it. Everybody got that????
Ladies and gentlemen:
YRCF had a horrible 1st quarter because of weather, because of the residue from a botched change of operations, because of strained customer relations, and a few other factors. To say that Yellow has ALWAYS lost money (been a parasite), etc etc. is pure BS. In 2003, when Yellow Corp bought Roadway, Big R was sinking faster than the Titanic. After that, Zollars and his merry men screwed up LOTS of things for which we're all paying today.
Do we want our 15%, our retirement 75% and our vacation time back? I know that I do. There's only one way to make that happen. We have to put our noses to the grindstone, do our jobs, do them really well, demand that the management either do likewise or get the %$#@ out of our way, make this place profitable, and then rightfully demand our money. Anything else is whining to somebody who isn't going to do anything about it. Everybody got that????
So please dont try the sideways double type about jim and joe or any damm labor cost ratio. when you handle freight 5 times instead of 1 and tie it down to several doors and trailers it kinda cuts down the profit margin and the cut a lil more by putting it in the computer over and over .... but hey .... look how many bill were moving by counting these over again each day... really. Just own the fact that our system sucks and Innovation is no where to be seen... the real no " I " in team. Jim and Joe can do your job and theirs in less time with less cost and get better results. now consider the ratio of managers and clerks to the productive employees.... whats that cost ?IMO
You are making some assumptions that I meant anything other than what I said. I used the Jim and Joe example to easily illustrate that paying more/less doesn't always save you money...I was talking about how easy it is to negate all that with heavy discounts and working less efficiently. You talk about touching the same box too many times or having too many managers and clerks...we are talking about the same thing: it costs too much money to move the box from origin to destination, relative to what revenue that box pays.
I disagree. They aren't making money because they are charging less to move the box from point A to point B than it costs to move it. That's it in a nutshell. Fix that and the company will make a profit.@Jimmykansas
They aren't making money because it costs too much to move the box from point A to point B. That's it in a nutshell. Fix that and the company will make a profit.
And I do no agree with that analogy. I know they are out there cutting rates to get more freight and it is a familiar syndrome. Load the trucks, load the trucks, load the trucks. If gas costs you $1.00/gallon and you sell it for $.96/gallon you lose money on it. If you drop the price to $.90/gallon so you can sell more but you just lose more money. That is a more befitting analogy.Ha ha, Toe-may-toe, ta-maht-o.
Same problem, two different perspectives.
Gas costs them $1/gal and you want them to sell it for more than $1/gal
I see all the stations in the area selling better gas for $1/gal, so they can't compete at $1.01.
I want them to find a way to get their costs down below a $1/gal so they can make a profit.
Figure all the millions they paid themselves in bonuses in the past few years, how much NEW equipment that would have bought.They cant give themselves a B O N U S every time they sell a gallon either.
If the gas station selling gas for $1.0 pumps it for me and washes my windshield ( read gives me better service) who do you think wins?Same problem, two different perspectives.
Gas costs them $1/gal and you want them to sell it for more than $1/gal
I see all the stations in the area selling better gas for $1/gal, so they can't compete at $1.01.
I want them to find a way to get their costs down below a $1/gal so they can make a profit.