[quote author=Kings disciple link=topic=79648.msg831029#msg831029 date=1274231088]
IMO the Watkins purchase had more to do with making FX a one stop shop for customers. They have a division for every need a shipper has now. Long lanes, short lanes, package, LTL whatever they need. Wanna get it there faster? Ok, pay a little more. Got plenty of time to get it there? Ok, pay a little less. Cross town to cross country, a envelope to 10 skids, we got it covered. It's all about giving the customer all the options they need to operate effecient, and Watkins was a good choice to cover the 3-5 day LTL option. I don't think it would make anymore sense to merge FXN with FXF as it would to merge FXF with FXG. It's the same type of thing Wal-mart does, with gas high and schedules busy, if you need several things at once pretty quick were do you go? Wally world, cause you know they've got it all in one stop, and at a good price.[/quote]
One stop shop?
I don't think that's a viable business model.
The reason is due to the rise of 3PL's and consolidators such as Hub Group, Expeditors, CH Robinson, Menlo, etc.
More than 1/2 of all LTL shipments are tendered via a 3rd party these days.
The problem with FedEx National is that it competes in long-haul lanes.
Unlike regional LTL, long-haul LTL is subject to much greater competition from other modes of transportation such as truckload, intermodal, etc.
You also have lighter-asset models such as Roadrunner who can do long-haul LTL at a fraction of the cost of a traditional hub-spoke model.
The keys for FedEx National to compete are:
1) money-back guaranteed shipments in long-haul lanes
2) consolidate duplicate general/administrative/operational functions and some facilities with FedEx Freight (not a merger, tho).
But to compete in today's "freight" market (notice I didn't say LTL), you must think outside the traditional hub-spoke box.
You need a strong brokerage/3PL/logistics arm (CH Robinson) to offer consolidation, distribution, brokerage, etc.
Also a lighter-asset model such as Roadrunner which could be like FedEx Ground on the parcel side in that the LTL services are 1) deferred and 2) non-guaranteed...and also offer truckload.
Where a company like FedEx can really leverage it's opcos is not in a one stop-shop but in the bundling of it's services.