You need Roadway management in there.
Roadway never filed bankruptcy like Yellow has. All you have is old time non-money making Yellow Freight high up management that isn't working.
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Yellow | Really WHY can't we make money ?
- Thread starter wongway
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You need Roadway management in there.
Roadway never filed bankruptcy like Yellow has. All you have is old time non-money making Yellow Freight high up management that isn't working.
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I can pay Jim $25 to move as much freight as he can in one hour, and Joe $25 to do the same. If Jim moves more freight than Joe, I don't have the same labor costs relative to my revenue. However, even if Jim and Joe both move the same amount of freight if the freight charges differ again I don't have the same labor costs. If people won't ship with me unless I discount the heck out of the freight I have to decide if I am better off hauling half the freight for 60% of the revenue given my fixed costs. Does that help?
Productive ? That word has lots of definitions.
Using that logic they actually lost 35 million last quarter.
Yes, it is subjective...but what's your point?
If I were king and decided that everybody would get $45/hr, do you think they'd all work twice as efficiently as they do now? If so, they really aren't costing me anymore. What if I paid everybody $11/hr. do you think they'd work half as much as they do now? Probably not. They'd throw it in park unless they were busy damaging as much crap as they can get their hands on.
Not much different than filling the trailers. If I discount the crap out of everything I could increase the revenue by hauling 3x the freight for 2x the money, but my costs have escalated disproportionately to the revenue, again not doing me any good. Conversely, if I double all the current freight charges and lose half my business I am producing the same revenue at a substantially reduced cost. Obviously if I double freight charges I am losing a whole bunch more than 50% of the freight.
So where's the happy balance with wages and freight charges, clearly they aren't where they are, nor where they were?
Don't you guys really think that it is a combination of many things, even the drivers and dock men have to take part of the blame, along with management, union, freight rates, economy and competition. IMO, which if you add fifty cents won't even get you a coffee anymore, you just can't blame one person or group of people for this whole big mess. I sure wish I had an answer, but then I would really be frustrated that no one would listen to me. I know I would be willing to make changes in the way I do things if I thought it would help the big picture, until everyone from the top to the bottom feels that way, I don't think it will ever get fixed. I doubt that everyone could or would ever get on the same page, even if they filed bankruptcy I think there are just too many guys that would say let her sink and I'll go elsewhere. I am usually pretty optimistic, but these last quarter numbers really caught me by surprise....I am starting to worry there might not be a light at the end of this tunnel....just another train coming at us?
Yes, but the train is further away than many (myself included) thought it was, and it doesn't appear to be moving as fast either....but it is moving closer instead of further away. Just maybe before it gets too close things will right themselves by shear accident and everybody can breathe a collective sigh of relief.
rainman220
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But it's funny how the NPME can pick up a shipment on the east coast consolidate it in Camp Hill, then move it west to a Reddaway break terminal then line haul it to a local Reddaway terminal and be profitable. And be deliverded on time and claim free. Npme also gets guaranteed shipments from Holland and delivers them on time. So even though we are three different regional carriers we are able to do our individual regional service and work together to do long haul and be profitable.
Using that logic they actually lost 35 million last quarter.
So you must be one of those who thinks only yrc"f" pays on the debt.
Really? Pretty sure you know what I said.
D
Deleted member 5115
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I'm thinking that they should stay away from the 3PL's and reduce discounts to a level where they can make a buck on the freight they haul.
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.
Snark Monkey
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However they sure know how to give themselves bonuses!
joes bar and grill
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Really pretty simple when you think about it, keep the freight rate and service at a level where you can make money. Damn I should be a CEO and collect a big salary with a bonus
Won't happen. Service won't be where it needs to be in order to be able to take a rate increase (without losing way too many customers) until people are willing to give more than 85% effort.
The trust isn't there that after giving more than 85%, service improves, rates go up, net income comes up, givebacks are given back. Seems they believe they will try to squeeze more blood from the turnip, so to speak, make a profit, give bonuses to management and execs and demand more blood. Way too many years of paying way more than the job warranted, spoiled a bunch of men in to thinking that they are now getting screwed. That isn't the case and perhaps they will realize that before it is too late. Meanwhile execs quit taking bonuses and wage increases until the company is profitable you certainly aren't helping the situation! You taking all you can while you can makes you no better than the people you condemn for giving 85% and vice-versa.
The trust isn't there that after giving more than 85%, service improves, rates go up, net income comes up, givebacks are given back. Seems they believe they will try to squeeze more blood from the turnip, so to speak, make a profit, give bonuses to management and execs and demand more blood. Way too many years of paying way more than the job warranted, spoiled a bunch of men in to thinking that they are now getting screwed. That isn't the case and perhaps they will realize that before it is too late. Meanwhile execs quit taking bonuses and wage increases until the company is profitable you certainly aren't helping the situation! You taking all you can while you can makes you no better than the people you condemn for giving 85% and vice-versa.
I'm thinking of starting a commercial tow service next to the Indy terminal. I've never seen so many tractors on hook in & out of that terminal. Guess it's cheaper to keep band-aiding that junk up then buy new ones. With constant breakage you would think it would be cheaper to buy new.
When we are talking about operating ratio. Roadway told us we were most profitable with our long distance freight.
jimmykansas
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I wish you would leave jim and joe out of it.... because when the trailer came late, and the weight cut ratio in the system held the trailer until it was so full about half of the freight needed recooped or exception recorded and then the deliveries went into trap trailers and the next day they were moved to another trailer and then on another day the freight got loaded out for delivery on yet another trailer.... dude.... this is just a peek at what happens daily. The leadership is so out of touch and disconnected from the "fundamentals" of this operation and thats the reason we dont make money !!!! IMO most of our leaders never even walked by a truck until they got this job. All they want to do is slam the easy button and blame the drivers for this or that and hardly ever take initative to innovate through planning or communication. We have a wealth of talent and capability within our rank and file and that stands the merit scale each day in spite of the managers. 40 years ago the system we run was impressive but now its is embarrassing. When its time for solutions... you know the kind that stick ...not the kind that are in a box on a shelf that can be ordered up with a clik and a swipe.... then all you have to do is ask the drivers to give guidence, we would rather give direction on how to do your job than anymore concessions. 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