I think you are all kind of missing the 'forest' since you are in and amongst the trees too closely.... (its all a matter of perspective)
Express will eventually outsource the delivery of non-overnight volume over to Ground. It will happen. About the only reason it hasn't happened yet, is because they know even the idiots would start signing union cards if their 'work' was to be taken away (they've already taken away the pension, pay progression and very soon health insurance from you all). Once they are confident they can take P2 off of Express delivery routes (with no Courier backlash), they will do it.
Therefore....
Memphis KNOWS that all DRA REALLY has to accomplish, is to get P1 delivered reliably and on time - that is all it really has to do. That is the primary reason why all the extra PART-TIME Couriers are being hired to get the system to work while they work the bugs out.
Right now, they are really jamming up the software with having multiple commit times, forcing the software to make 2 and sometimes 3 separate passes through an area to get volume off on time (P1, Non-P1 overnight, 2nd & 3rd Day). The software wants to straight line, but with the multiple commits, it can't do that - thus why all the problems. Add on top of that the need to balance routes, then once a route is balanced for P1 - it may have too much P2 in the same area that it will have P1 deliveries to make - really causes problems. The software likes to assign all P2 deliveries in an area to a route that has been balanced for P1 FOR THAT AREA - even if that means that route has too little to do and would be off road early OR if that route would be out too late and miss running pickups or just have the Courier getting OT while someone on an adjacent route is getting paid minimums. Its analogous to trying to ride a unicycle while juggling bowling pins and singing the national anthem all at the same time and not screwing any of the three things up.
In the end, all DRA will need to do, is to identify P1 as a distinct item from standard overnight (it can already do that). Then, it will need to both balance routes for P1 deliveries WHILE providing a stop ordering for all P1 (already doing this too). Then, for all the non-P1 overnight, it just needs to perform a stop ordering for the non-tagalongs to get that volume off and the Courier back to station (there isn't enough non-P1 overnight that are stand alones to really jam up any route - that volume - in the absence of non-overnight product - can EASILY be gotten off in time to not have service failures). That is the part they are working on. That is ALL it really needs to do.
Where Express is having its issues, is in that it is still trying to shove the delivery of 2nd and 3rd day volume into the same software - then balance all of this so that P1 and P2 is balanced, THEN make sure that some Couriers aren't getting massive OT while others are getting paid minimums. It is a mess. Bowling pins are flying everywhere and the national anthem is really being trashed....
What you need to be looking for, is when Express will feel confident enough to finally shift delivery of non-overnight over to Ground. Once they do this, then ALL of the problems with DRA will disappear overnight (well, once non-overnight disappears from the delivery side of the system).
I know everyone still has their doubts -but it will happen when Express feels confident enough that it can do it and not have any worries about the Couriers organizing to protect their full time jobs.
Take a step back from amongst the trees (your day to day work), and take a wide look at what has happened to Express in the past 3-4 years. You have ALL seen the gradual elimination of the W700s which are being replaced by Sprinters. This is no secret. It is said the best way to hide something is to place it in plain sight...
You have all seen the gradual reduction of the number of full time Couriers in your stations. When a full-time position opens up, the default procedure is to hire 2 part-timers to fill that position. If it was a 4x10 position, they may hire 2 AM part-timers and 1 PM part-timer to replace this individual. You may think, "Gee, the cost of benefits would more that eat up any savings in lower wage rate....". Take a look at your health insurance package for next year and your answer to that question will be staring you in the face.
You have all seen and been made aware of how FedEx is giving shipping quotes to Express customers that have Ground shipping quotes right alongside the Express rates. Customers aren't stupid. If they don't absolutely need overnight or second day delivery, they will go to that lowest price quote which is more often than not, half the price of even the lowest Express quote (Express Saver). The customers (with a little encouragement from FedEx) are shifting their volume OUT of Express and into Ground.
Those that work in DRA stations have seen how volume that arrives in their station a day or two before commit, is PULLED from the sorts to be send down the next AM for delivery. Express isn't 'giving away' de facto service upgrades anymore. Customers are catching on to this fact and either biting the bullet and paying to get their package delivered when they really want it - or just shipping it with Ground and saving themselves a large sum on their shipping budget.
You have all been made aware that FedEx actually makes MORE on a package that is shipped through Ground, than if the same package were shipped through Express. Even with the lower price charged on Ground service, the final margin for FedEx (on that package) is HIGHER than if that package went through Express.
You have all been made aware that Ground is raking in double digit profits (15-17%), while Express is struggling with profits in the mid single digits (pre-one time expenses).
So now that you are out from amongst the trees, with knowledge of what is going on in Memphis, ask yourself, "What is the next step that FedEx can take to improve profitability for FedEx Corporation?" Keep in mind that the cost structure in Express is markedly higher than in Ground, so Ground can perform many of the same things Express can do (with the exception of flying packages), for a significantly lower cost. Doesn't take an MBA to figure that one out.
