FedEx's Cost-Saving Plan

UPS is such a larger enterprise in terms of the number of packages that moves through its US domestic package network, it moves roughly 65% more packages than FedEx Express. And what that leads to in turn is a productivity gap that we estimate could be as much as 90% more productive in the case of UPS and FedEx when you look at the efficiency of the pickup and delivery operations. We think given the shift towards higher volumes of e-commerce packages, this is really hugely inefficient and needs to be addressed by the company. The current plan is just too conservative and not bold enough.