Founder, chairman, chief executive officer, and president, FedEx Corporation Nationality: August 11,in Marks, Mississippi. Yale University, BA, Son of Frederick C.
Washington DC always seems to draw the largest mailing crowds for this gathering. However, pre-registered attendance was reported to be down a few thousand to 4, This most probably was due to the struggling economy. The educational sessions andsquare feet of exhibit area for manufacturers and suppliers were solidly dedicated to how best to use traditional first class and standard mail.
The Postal Service is clearly betting on the IMb to be the cornerstone for its future efficiencies and the containment of its escalating labor cost burden.
This article will reflect upon the USPS initiatives taken to restructure its organization and the potential alternative courses of action that the small to medium sized mailing service providers including full service printers might consider in achieving IMb readiness.
For nine consecutive quarters mail volumes have progressively dropped. This year alone 20 billion pieces less than the tally of billion. This 20 billion lost exceeds the total annual mail volume for each of the majority of the developed nations of the world. Stated another way daily pieces of mail delivered to each US addressee has fallen from 6 to less than 5.
Offsetting the mail volume drop is the addition fedex business plan rejected by professor a million new addresses each year. Over 7, routes will be eliminated this year alone. Both of these figures are scheduled to escalate each year through Congressional Committee hearings on this proposed action, as H.
Fairly accurate mail volume projections have traditionally been made utilizing GDP, Retail Sales, and Investment indices. Following that norm Post Master General Jack Potter expects the bottom to be about billion pieces of mail next year before a turnaround is reached. Because of the unusual nature of the successive quarters of volume collapse, the Mailing Technical Advisory Committee MTAC comprised of 55 associations is being polled for its individual projections of mail volume in the near future.
Various research reports, e. Whether their numbers hit the mark matters less than the contrary view expressed that an improving economy will not necessarily increase conventional mail volume as espoused by the PMG.
Plus the small to medium sized printers reading this article are not eligible for it anyway! Following the rule, i. The good news is that no large mailing service provider is eligible, only the firms buying the mailing.
This will prevent the bigger MSPs from siphoning volume from smaller mailers to take advantage of the seasonal sale. Seems the PRC wants to-have-its-cake-and-eat-it-to.
Despite the fact that no Marketing professor would have passed anyone in that class, the mere initiative must be acknowledged as heading in the right direction.
Results of this initiative will not officially be reported until probably late fall. Hence, the PRC must have the details of the next promotion in their hands for review before the actual results of this first effort are fully known.
The expectations for this initial effort being successful to any appreciable degree are dubious at best because of the minimal planning horizon allowed. This, of course, disregards the precept that the future landscape for direct mail is changing regardless of the impact of any temporary pricing adjustments.
While the USPS is hiring new executives in their sales arenas, their pricing flexibility is unfortunately limited to negotiated service agreements and high volume packaging arrangements.
The members of the Postal Regulatory Commission, while distinguished legal professionals, are not typically known for their entrepreneurial or retail marketing prowess. So it is difficult to surmise what if any promotion might follow up this first effort. The advocates for variable data digital printing continue to report return on investment results that are so high that no PRC member would ever expect to rationalize a reason to discount what is perceived to be an already cheap monopolistic distribution venue.
And the more successful personalized targeted mailing becomes the shorter the run lengths anticipated. This is contrary to the old tried and true business model of huge blanket runs of standard mail promotions of two decades ago.
Hence, small businesses, which are acknowledged to be the generators of most new jobs in America, will probably not swing much clout with the Postal Service since they will never be part of the elite described earlier. While they have a relatively modest advertising budget, they have decided to concentrate the bulk of those moneys this year at the Priority Mail product.
They feel their variety of products at modest cost with free containers to be shipped anywhere in the United States is a strong competitive offering of which presumably not everyone is aware. Three Key Operational Fulcrum Points The United States Postal Service seems to be betting its future on three operational initiatives; 1 maximize address quality, 2 automate every stage of mail material handling possible, and 3 reduce and outsource as much labor intensive tasks as possible.
The first will be achieved by charging extra for UAA undeliverable addresses. This will be achieved by refusing to allow discounts for inaccurate lists poorly applied that amount to a certain percent of the whole list.
The heart of the second point is the implementation of the Intelligent Bar Code IMbwhich will be discussed in more detail later in this article.Wal-Mart rejected such an arrangement, says Mr. Bouck, whose firm no longer does work with the retailer. and in pursuing a joint business plan together," Walsh Construction President Dan Walsh.
FedEx became competitive in the ground delivery business by illegally pushing costs onto independent contractors. a professor at the University of North Carolina law school who specializes in.
LTD Management provides leading logistics and supply chain management consulting based on real-world experience. This is a tried and true business plan for Amazon. Jeff Bezos has developed a company culture that continuously reinvents itself to stay ahead of the technology/logistics curve.
Professor Richard Wilding OBE of . Luck in Business The Webster’s Dictionary defines “luck” as Steven Jobs was rejected from Hewlett Packard. The business plan for FedEx got a “C” grade in Yale because the teacher thought it was not feasible.
I’m sure that professor regrets that now that it is one of the most successful businesses of its type. Apr 24, · Do you want to be rejected in a bunch of places or given a chance/interview with some cool employers? The better the school’s brand, the more exclusive it tends to be, and the more helpful/close-knit the alumni are (more likely to hear back when you reach out).
(FedEx founder got a “C” on his business plan for FedEx . Mission & Goals FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies.