Hey Skeeter , this link was covered in a previous thread.
I think it would be best for you boys if this deal falls through. The amount of debt that xpo is taking on is troubling at best. And their plans to increase conways profitability by a large margin , without ever running an Ltl carrier seems greatly exaggerated. I stated earlier that if their ability to service their debt depended on their ability to squeeze out an extra 200 million from conway I didn't think that would bode well for y'all's future.
I see many of your guys literally running in and out of customers, constantly being pushed for more. All companies have some fat and in theory could operate more efficiently, but the reality is people are not machines and there is only so much they can take. Conway has always pressured their drivers as much or more than anyone else in this business. I remain very skeptical of Xpo's ability to increase Conways profitability by that large a margin without significantly changing the compensation of their employees. Maybe they believe they can pay Ltl guys the same as logistics/cartage drivers or plan on outsourcing most of the linehaul work? Drastic changes like those would be the only way I can see them getting to that level of profitability, and those would be detrimental to the company in the long run.There is enough waste here to double that 200 million. But he is new to it and to go for a more reasonable 200 million is cautious and prudent.
I see many of your guys literally running in and out of customers, constantly being pushed for more. All companies have some fat and in theory could operate more efficiently, but the reality is people are not machines and there is only so much they can take. Conway has always pressured their drivers as much or more than anyone else in this business. I remain very skeptical of Xpo's ability to increase Conways profitability by that large a margin without significantly changing the compensation of their employees. Maybe they believe they can pay Ltl guys the same as logistics/cartage drivers or plan on outsourcing most of the linehaul work? Drastic changes like those would be the only way I can see them getting to that level of profitability, and those would be detrimental to the company in the long run.
I see many of your guys literally running in and out of customers, constantly being pushed for more. All companies have some fat and in theory could operate more efficiently, but the reality is people are not machines and there is only so much they can take. Conway has always pressured their drivers as much or more than anyone else in this business. I remain very skeptical of Xpo's ability to increase Conways profitability by that large a margin without significantly changing the compensation of their employees. Maybe they believe they can pay Ltl guys the same as logistics/cartage drivers or plan on outsourcing most of the linehaul work? Drastic changes like those would be the only way I can see them getting to that level of profitability, and those would be detrimental to the company in the long run.
If you read through the postings since this pending deal was announced one thing is clear from the regulars that post here and work at Con-way -
We will take a wait and see approach.
Also , there's enough way's to run Con-way more efficiently without bothering drivers ( you would notice this in about 2 seconds of watching our operations )
People keep mentioning driver pay and XPO vs Con-way. Look at management pay. The CEO of XPO Logistics pay was around $4 million , total compensation. Job listings for management types at XPO ( excluding the CEO )seem to get payed less than their counterparts at Con-way.
That is just what they wast on lean!!!!!
Great find. Very interesting to hear this guy talk.yes, it is clear a large portion of the savings will come from IT and not going after drivers. See below from today - 9.24.15
He's far more intelligent than our entire mgmt team combined. He's thinking a decade down the road already.Great find. Very interesting to hear this guy talk.
If XPO Logistics is able to buy Con-way I'm really interested in how he will handle that next level of management that wasn't let go but they're still high up.He's far more intelligent than our entire mgmt team combined. He's thinking a decade down the road already.
yes, it is clear a large portion of the savings will come from IT and not going after drivers. See below from today - 9.24.15