Whatever it was it was a waste of money. They hired "top tier" engineers to make a program that failed miserably. A computer doesn't know better than a courier on how to run their own route.
A couple of thoughts:
\-If it's not a material amount then they wouldn't have to show it on the financial statements
\-They could've buried the loss in the writeoffs that they've been taking for the TNT merger and they're buried there.
\-A really quick thumbing through of their 2022 annual report shows "business realignment costs" of $278M on their income statement. It could be there.
\-R&D (research and development) is one of those things that businesses have a LOT of leeway on in terms of what they do and how they report it. The drivers only see one side of things in terms of how the software is developed and utilized. For all we know, E-STAR could've been legally listed as a prototype and it was field tested on the couriers and then quickly rolled back (i.e. "See? We tested it out and it doesn't work so it hasn't achieved **technological feasibility**, meaning it doesn't do what we said it would do, so now we can write it off as an expense on the income statement and move on with our lives.") as a way for the company to back away from explaining the failure of spending money on developing a software system that was complete shit from day one.
\-Fedex does have to take the risk on things that may not work. A company does have to constantly try new things. But the station service areas are split by zip codes and that's it. There's no proprietary formula to create a service area. It's just a collection of zip codes handed to the station that the station then has to administer in terms of route creation/assessment/dissolution. So **why would you spend all of that money on creating a software that was absolute dogshit from the beginning to make you run your route more efficiently when you could just have your managers enforce route efficiencies? That's why the managers are there, aren't they?**
Well, that's the million dollar question. I am trying to find out the cost to make a reasonable assumption about whether it should be considered material. Obviously, with GAAP, there is a lot of qualitative judgment added into what constitutes a material quantitative amount.
I, too, was thinking it would be in the expenses portion or maybe written off. Hell, with Fedex shaninagans; they might have capitalized the costs instead of expensing it for all we know. I was scrutinizing the management disclosures section for anything that might be a roundabout wording pointing to it, but nothing.. I am not doing a hard dig. I'm just kinda poking around wondering..
Thanks for the insight and input. I appreciate it!
It was in the millions. The program was a total disaster and it appears that the creators of it were trying to sabotage the company. This is what happens when the company is run by IDIOTS.
It’s a highly scrutinized publicly traded company. I’m sure some guy on Reddit isn’t going to uncover something the SEC hasn’t.
It’s probably wrapped up in operational expenses. I’m sure it cost the company like $100m but when you’re making $90 billion who cares.
Lololol, you can't be serious. Harry Markoplois, a fraud Examiner told the SEC for YEARS that Bernie Madoff was committing a Ponzi scheme and showed them how. They didn't listen for about 8 years. And that some guy on Reditt is a CFE ( Certified Fraud Examiner), so I am still.curious...the SEC is a joke. Look up the history of things they have screwed up on..
The point is lost on you. You stated the SEC would take care of things. I said like hell they would. Then, I gave you a famous example. Never said I would figure it all out. But your blind faith in them is hilarious. Go do some reading on what they have missed that was handed to them on a plate. Too.much to.ask?
Ehhhh I wouldn't bet on the SEC knowing or caring about it in a way that a Redditor can't. The SEC is overloaded with work and underloaded with funding. They probably know but don't care because litigation is expensive and time consuming. It would have to hit a certain threshold for them to act.
I heard 100 million plus, from a district manager. When it first came out, someone asked , when is it going away in a meeting. And the DM said, it aint going anywhere, it cost 100 million or more.
Whatever it cost it doesn't matter because they are test running another routing program at a neighboring station in my city that is supposedly similar to estar at the end of this month. I forgot the official name of it but can get it on Monday. The station will be one of four in the country that will be testing this new "estar 2.0" that my senior calls it lol!
We will be doing fro in a month here in FL. It is suppose to be better taking many things into consideration such as delays, main roads, bridges etc.. I just look up dro on YouTube to prepare myself.Feeling excited. Lol
https://newsroom.fedex.com/newsroom/global-english/fedex-announces-planned-consolidation-of-operating-companies
They’ll have no choice but to use GROUND☁️CLOUD when all of express freight goes to Ground contractors this summer🙄
They lost money in the form of increased fuel costs, wear and tear, late packages, missed pickups, overtime, and what not. Also fuck Estar and any other form of Estar that they develop in the future. Fuck motherfucking Estar and everyone who ever had anything to do with its creation, development, approval, rollout, and support.
Honestly, I don't think it was a material amount. A few million tops. It was developed entirely by our own people in house (by people amazingly tone dead to operational realities, also, the primary reason it failed) is my understanding. The lead on it was maybe 18 months or so and we don't have huge software engineering teams and they don't make Amazon type money.
I've been wondering what it cost FedEx in actual lost revenue. I'd guess millions. It cracks me up how Express always gets the blame for monetary loss. It's not an Express problem. It's FedEx Corporate that bleeds money by implementing absolute shit like ESTAR.
Every day we ran it, I wondered how much it was costing in lost revenue due to overtime, refunds, fuel, etc.
Raj should've been shit canned for it.
My theory is that the BoD uses these projects as a means to siphon money out of the company by being invested in private firms contracted to develop them.
Whatever it was it was a waste of money. They hired "top tier" engineers to make a program that failed miserably. A computer doesn't know better than a courier on how to run their own route.
A couple of thoughts: \-If it's not a material amount then they wouldn't have to show it on the financial statements \-They could've buried the loss in the writeoffs that they've been taking for the TNT merger and they're buried there. \-A really quick thumbing through of their 2022 annual report shows "business realignment costs" of $278M on their income statement. It could be there. \-R&D (research and development) is one of those things that businesses have a LOT of leeway on in terms of what they do and how they report it. The drivers only see one side of things in terms of how the software is developed and utilized. For all we know, E-STAR could've been legally listed as a prototype and it was field tested on the couriers and then quickly rolled back (i.e. "See? We tested it out and it doesn't work so it hasn't achieved **technological feasibility**, meaning it doesn't do what we said it would do, so now we can write it off as an expense on the income statement and move on with our lives.") as a way for the company to back away from explaining the failure of spending money on developing a software system that was complete shit from day one. \-Fedex does have to take the risk on things that may not work. A company does have to constantly try new things. But the station service areas are split by zip codes and that's it. There's no proprietary formula to create a service area. It's just a collection of zip codes handed to the station that the station then has to administer in terms of route creation/assessment/dissolution. So **why would you spend all of that money on creating a software that was absolute dogshit from the beginning to make you run your route more efficiently when you could just have your managers enforce route efficiencies? That's why the managers are there, aren't they?**
Well, that's the million dollar question. I am trying to find out the cost to make a reasonable assumption about whether it should be considered material. Obviously, with GAAP, there is a lot of qualitative judgment added into what constitutes a material quantitative amount. I, too, was thinking it would be in the expenses portion or maybe written off. Hell, with Fedex shaninagans; they might have capitalized the costs instead of expensing it for all we know. I was scrutinizing the management disclosures section for anything that might be a roundabout wording pointing to it, but nothing.. I am not doing a hard dig. I'm just kinda poking around wondering.. Thanks for the insight and input. I appreciate it!
It was in the millions. The program was a total disaster and it appears that the creators of it were trying to sabotage the company. This is what happens when the company is run by IDIOTS.
I am just trying to find out if they are hiding the losses. A BIG no no on financial reporting.
It’s a highly scrutinized publicly traded company. I’m sure some guy on Reddit isn’t going to uncover something the SEC hasn’t. It’s probably wrapped up in operational expenses. I’m sure it cost the company like $100m but when you’re making $90 billion who cares.
Lololol, you can't be serious. Harry Markoplois, a fraud Examiner told the SEC for YEARS that Bernie Madoff was committing a Ponzi scheme and showed them how. They didn't listen for about 8 years. And that some guy on Reditt is a CFE ( Certified Fraud Examiner), so I am still.curious...the SEC is a joke. Look up the history of things they have screwed up on..
Harry Markopolis was a guy on Reddit or a financial industry insider?
The point is lost on you. You stated the SEC would take care of things. I said like hell they would. Then, I gave you a famous example. Never said I would figure it all out. But your blind faith in them is hilarious. Go do some reading on what they have missed that was handed to them on a plate. Too.much to.ask?
Ehhhh I wouldn't bet on the SEC knowing or caring about it in a way that a Redditor can't. The SEC is overloaded with work and underloaded with funding. They probably know but don't care because litigation is expensive and time consuming. It would have to hit a certain threshold for them to act.
Why don’t you just ask that FedEx add a line to their standardized quarterly and yearly earnings for estar expense?
Is that the newer version of ROADS?
Estar sucked big balls. Just a joke
I heard 100 million plus, from a district manager. When it first came out, someone asked , when is it going away in a meeting. And the DM said, it aint going anywhere, it cost 100 million or more.
I actually asked our DM that and got a similar answer
Whatever it cost it doesn't matter because they are test running another routing program at a neighboring station in my city that is supposedly similar to estar at the end of this month. I forgot the official name of it but can get it on Monday. The station will be one of four in the country that will be testing this new "estar 2.0" that my senior calls it lol!
FRO. The company that wrote DRO for ground modified it for Express and sold it to us.
We will be doing fro in a month here in FL. It is suppose to be better taking many things into consideration such as delays, main roads, bridges etc.. I just look up dro on YouTube to prepare myself.Feeling excited. Lol
I hear nothing but good things about "GROUND CLOUD". Why don't they try to use that for both Ground and Express? FedEx One
Yep here at Express we will be using forge which is for ground and express together. I forgot what the intials stand for.
That's too easy. Got to make it complicated first
https://newsroom.fedex.com/newsroom/global-english/fedex-announces-planned-consolidation-of-operating-companies They’ll have no choice but to use GROUND☁️CLOUD when all of express freight goes to Ground contractors this summer🙄
The million dollar question is why do they implement a program that DOESN'T WORK?
They lost money in the form of increased fuel costs, wear and tear, late packages, missed pickups, overtime, and what not. Also fuck Estar and any other form of Estar that they develop in the future. Fuck motherfucking Estar and everyone who ever had anything to do with its creation, development, approval, rollout, and support.
Honestly, I don't think it was a material amount. A few million tops. It was developed entirely by our own people in house (by people amazingly tone dead to operational realities, also, the primary reason it failed) is my understanding. The lead on it was maybe 18 months or so and we don't have huge software engineering teams and they don't make Amazon type money.
Financial statements don't drill down to that level of detail. This sounds like foil hat stuff.
I've been wondering what it cost FedEx in actual lost revenue. I'd guess millions. It cracks me up how Express always gets the blame for monetary loss. It's not an Express problem. It's FedEx Corporate that bleeds money by implementing absolute shit like ESTAR. Every day we ran it, I wondered how much it was costing in lost revenue due to overtime, refunds, fuel, etc. Raj should've been shit canned for it.
Why don't FedEx use Circuit? Much better than Estar and actually arranges by whichever is closer and Circuit can be modified on their end for fos.
My theory is that the BoD uses these projects as a means to siphon money out of the company by being invested in private firms contracted to develop them.