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XPO | VPP

it's like a car he's going to sell for a profit but needs to work the bugs out of it first, then shine it up to get the most out of it. what will remain is the logistics
 
if you were jacobs, would you come out and say youre shopping the company and have your cliental and employees looking elsewhere? keep the waters calm and nobody panic is what he wants right now. the drivers will be tweaked down the road as well. i was involved in something similar and see alot of the same things happening to you guys. all LTLs are basically the same.
 
ScotchNeat said:
After the St Louis conference, our SCM told us that VPP for 2017 was going to be payed out based on individual profitability of service centers as opposed to profits being divided up equally among all service centers. IE, if your SC turns a profit, you'll get a bigger check than the an SC that makes less money or turns no profit.
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You are missing one point. Why doesn't the SC know what it's margin is? It seemed that the old Conway exc's would not tell the SC what theirs was make you think they were fudging the numbers. For every LTL company I know the local terminal knew their margin. My SCM told us this week that they were now letting the SC know what there margin was for there SC and the company wide.

For all you wet behind the ears drivers out there the margin is how much of a dollar that is earned is spent on operating cost. ie: to earn $1.00 the company spent $0.90 leaving a $0.05 profit.
To give you an idea
XPO operates in the low 90ies
OD operates in the low 80ies
 
highspeeds said:
I can see no fair way to do this. Con-way did it back in the day. It was horribly flawed.

You can't pay people by the amount of work logged and expect them to do the right thing.

Imagine all the hazmat unsecured. Placards not made. People shoving :::shit::: into trailers while you are loading them. It's a nightmare scenario.

It will only bring out the worst. Just my opinion.
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It's happening now it all about the numbers Motor moves and cube
 
Fly-by-night said:
For all you wet behind the ears drivers out there the margin is how much of a dollar that is earned is spent on operating cost. ie: to earn $1.00 the company spent $0.90 leaving a $0.05 profit.
Click to expand...

Well there's our problem right there- math. We need to find out who's getting the other five cents. Maybe we could get some folks with dry ears to help us out.
 
Fly-by-night said:
You are missing one point. Why doesn't the SC know what it's margin is? It seemed that the old Conway exc's would not tell the SC what theirs was make you think they were fudging the numbers. For every LTL company I know the local terminal knew their margin. My SCM told us this week that they were now letting the SC know what there margin was for there SC and the company wide.

For all you wet behind the ears drivers out there the margin is how much of a dollar that is earned is spent on operating cost. ie: to earn $1.00 the company spent $0.90 leaving a $0.05 profit.
To give you an idea
XPO operates in the low 90ies
OD operates in the low 80ies
Click to expand...
In the trucking industry in general and LTL in particular what you call the "margin" is commonly referred to as the OR or Operating Ratio. There are threads sprinkled throughout Truckingboards about this over the years.


An OR is a measure of carrier efficiency, operating expenses/operating revenue X 100. An operating ratio of 100 means carrier breaks even. Under100 means carrier profitability. Over 100 means carrier loss.

Expenses = $100,000
Revenues = $110,000
Operation Ratio 90.9
$100,000/$110,000 X 100 = 90.9
 
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