Re: What Happens When You Cut Costs Too Much
Author: Profit Squeezer
Date: 02-23-2019 - 19:00

No doubt that a different paradigm could work. The new ideas or theories might not work, but it's also possible they will.

Looking at load velocity, or other metrics is worthy of exploring. Just looking at revenue per car you walk away from a lot of business that might make sense with increased efficancy or velocity.

Look at what can happen on the Interstates once autonomous cars can run, should result in faster speeds, safer operations, more cars per mile, better asset utilization, all on the same(existing) roads. UPS and Amazon etc. have used technology to increase velocity to impressive levels over the past.

PSR is just something new to try. As long as the RR does not go into meltdown the results will be interesting. RR'ing is so capital intensive that is should keep most of the venture capitalist away(such as what happened at Kraft Foods major investors/owners). But obviously PSR seeks to minimize expenses(or maximize use) of Locomotives and Labor. Perhaps even cutting some lower level "manager" positions.

It does seem strange that Berkshire Hathaway let this happen with KRAFT FOODS, Something like 4 BILLION in book value lost with its poor stock performance.



Subject Written By Date/Time (PST)
  What Happens When You Cut Costs Too Much observer 02-22-2019 - 09:54
  Re: What Happens When You Cut Costs Too Much Bill Parcells 02-22-2019 - 16:57
  Re: What Happens When You Cut Costs Too Much Robert Kenneth Kraft 02-23-2019 - 10:11
  Re: What Happens When You Cut Costs Too Much conjecturitis 02-23-2019 - 16:40
  Re: What Happens When You Cut Costs Too Much Profit Squeezer 02-23-2019 - 19:00
  Re: What Happens When You Cut Costs Too Much synonymouse 02-23-2019 - 20:09
  Re: What Happens When You Cut Costs Too Much Chuck Fairbanks 02-24-2019 - 07:33
  Re: What Happens When You Cut Costs Too Much An Investor 02-24-2019 - 12:15


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