3rd resi attempt going bye bye...

[STFXG]

What they should do is offer first attempt then divert it over to ground. Just send a trailer from the express building to the ground building and let them take over from there...

 

[Goldilocks]

Regarding DEX3's...

All of this must be put under the context of DRA - that is the future of Express, whether you think it will work or not at this point in time.

If a piece comes in with a bad address, it will supposedly be flagged before it even goes down the belt (the ROADS label won't "assign" a route to the package, it will get a "0" and immediately go to the Office). Even before that, there will be employees coming in before the sorts doing address corrections (should be going on now in most stations). The address corrections will automatically update in ROADS, then when the sort starts, a correct routing label is applied to the package (and supposedly the Courier running the route will get a sheet informing them of the correct address to use for package). The whole goal is to ensure that NO packages are taken out by Couriers with bad addresses - none whatsoever.

I know you may be thinking this is fantasy, but Express has already cooked up a way to solve the potential issues which may arise by NOT having Couriers take out packages with bad addresses in the AM (waiting to get corrected info as they are on road...).

What they envision, are the PM routes taking out pieces which couldn't be corrected before the AM routes left the building, for delivery. With all the extra time the CSAs are going to have (since they won't be running back and forth to the cages retreiving packages for customers with door tags), they will spend that time getting corrections to bad addresses in the AM. The PM routes will have packages assigned to them, to get off presumably before they start their pickups. If need be, PM routes can be started a few minutes earlier than needed (compared to if they were just doing pickups), in order to get out address corrections and any potential missorts that arrived in the stations.

So the end goal, is to have DRA do all route balancing and routing, reduce Courier on-road time by eliminating "send-agains", reduce CSA hours by having customers go to Office to pick up their packages which couldn't be released and therefore boost Express' profitability by cutting hours and shifting work over to Office when possible.

Express has lost close to 10% of its volume compared to 4 years ago. It is about to shed another 10-15% of its volume with the ending of Express Saver service. It is going to trim Courier on-road time, by eventually ending the game of send-agains and merely "shifting of that volume" (term I've used before), to Office to hold and have customers go there instead of to the Express stations. Express is aiming to NOT send out packages with known bad addresses in the AM (getting out good info as the AM Couriers are on the road), but rather have the CSAs do research in the AM (holding the piece in the station), then having the PM routes take those pieces out for delivery at the beginning of their route.

I think you can see a pattern developing here.... Between the overall reduction in volume and gradual (and deliberate) shifting of "work" over to Office, hours for wage employees will gradually be reduced. Compared to 4 years ago, an AM route that took maybe 9 hours on average to run, will only take 7.5 hours to run after all of this is implemented (bye bye to overtime expense for Express). Then when the final bomb is dropped (shifting of delivery of 2nd day volume to Ground), the AM routes will only requre about 1 hours of sort time in the morning (no 2nd day to sort), and just over 4 hours of on-road time (PO and SO) - sounds like a part-time job to me.

If you are working as a full-time Courier, your "career" is squarely in the crosshairs of Memphis business planning and I don't see the Couriers doing anything about it.

So I am guessing this mean they will have to eleminate guarentee hours? I have been doing something about it. Trying but it takes more than one person...Wish they would offer us "Old Timers" a buy out....Its been fun but the fun is over.

 

[TUT]

The shippers will be reviewing what these alleged changes are and if they work. We are not bound to carrier like an employee can be. IF we don't like what we see we have a choice and you can bet we'll be asking for a drop in cost "if" there is a reasonable drop in service. From what I gather couriers don't like residential, they don't like cod's, they don't like even add. corrections, even though all those services have high ascessorial charges. As if the shipping companies are getting lazy. And then some here think UPS or Fedex wants the US Mail. Everything they are trying not to be.

 

[Ricochet1a]

What they should do is offer first attempt then divert it over to ground. Just send a trailer from the express building to the ground building and let them take over from there...

Two problems...

1. How is Ground going to be any more successful in getting a resi signature from somone who isn't home for Express, to be home for a Ground attempt?

2. How is the "Express customer" supposed to get their package being held by Ground?

Ground would just end up taking it to Office for pickup.... so why get Ground involved at all in Express packages which need signatures?

No need for shifting this traffic to Ground. Express will make its delivery attempt, if the resi customer isn't home to sign, leave a tag stating what Office location will have the package, then the customer can play fetch when they are able. Express no longer fiddles with the package at this point and the customer has a location that is relatively nearby to fetch their package that requires a signature.

When Express 2nd day is eventually shifted over to Ground for delivery, THEN Ground will get to play the game - and I presume that FedEx will utilize the same solution they are planning for Express - one attempt then fetch at Office.

In the coming years, you will see a deliberate mirroring of service practices between Express and Ground. They will remain separate opco's, but from the "customer experience", they will merely be alternatives available depending on just how fast they need their package to arrive. The actual operating practices will become closer and closer - with a HEAVY emphasis on both opcos taking packages they can't get off to resi customers - to the local Office for them to worry about. Part of the whole goal of FedEx, is to get the Ground contractors and the Express Couriers to use the EXACT SAME operating practices - so customers know what to expect from FEDEX....

 

[MrFedEx]

Two problems...

1. How is Ground going to be any more successful in getting a resi signature from somone who isn't home for Express, to be home for a Ground attempt?

2. How is the "Express customer" supposed to get their package being held by Ground?

Ground would just end up taking it to Office for pickup.... so why get Ground involved at all in Express packages which need signatures?

No need for shifting this traffic to Ground. Express will make its delivery attempt, if the resi customer isn't home to sign, leave a tag stating what Office location will have the package, then the customer can play fetch when they are able. Express no longer fiddles with the package at this point and the customer has a location that is relatively nearby to fetch their package that requires a signature.

When Express 2nd day is eventually shifted over to Ground for delivery, THEN Ground will get to play the game - and I presume that FedEx will utilize the same solution they are planning for Express - one attempt then fetch at Office.

In the coming years, you will see a deliberate mirroring of service practices between Express and Ground. They will remain separate opco's, but from the "customer experience", they will merely be alternatives available depending on just how fast they need their package to arrive. The actual operating practices will become closer and closer - with a HEAVY emphasis on both opcos taking packages they can't get off to resi customers - to the local Office for them to worry about. Part of the whole goal of FedEx, is to get the Ground contractors and the Express Couriers to use the EXACT SAME operating practices - so customers know what to expect from FEDEX....

I know what they can "expect" from the new FedEx. Crap service and lots of hype about how much FedEx is dedicated to service. Smoke and mirrors, deception, lies...the usual BS about how we "value the customer" when management is fixating on reducing the quality of service in pursuit of lower costs.

 

[vantexan]

The shippers will be reviewing what these alleged changes are and if they work. We are not bound to carrier like an employee can be. IF we don't like what we see we have a choice and you can bet we'll be asking for a drop in cost "if" there is a reasonable drop in service. From what I gather couriers don't like residential, they don't like cod's, they don't like even add. corrections, even though all those services have high ascessorial charges. As if the shipping companies are getting lazy. And then some here think UPS or Fedex wants the US Mail. Everything they are trying not to be.

I like residential and COD's or address corrections don't bother me. What I hate is a highly condensed, heavy box rt with bad traffic, limited parking, and constant jumping in and out of the truck, dealing with at least 100 people a day. I see deer all the time, and saw a bald eagle and a bobcat last week. And get to pet friendly dogs all day.

 

[vantexan]

Two problems...

1. How is Ground going to be any more successful in getting a resi signature from somone who isn't home for Express, to be home for a Ground attempt?

2. How is the "Express customer" supposed to get their package being held by Ground?

Ground would just end up taking it to Office for pickup.... so why get Ground involved at all in Express packages which need signatures?

No need for shifting this traffic to Ground. Express will make its delivery attempt, if the resi customer isn't home to sign, leave a tag stating what Office location will have the package, then the customer can play fetch when they are able. Express no longer fiddles with the package at this point and the customer has a location that is relatively nearby to fetch their package that requires a signature.

When Express 2nd day is eventually shifted over to Ground for delivery, THEN Ground will get to play the game - and I presume that FedEx will utilize the same solution they are planning for Express - one attempt then fetch at Office.

In the coming years, you will see a deliberate mirroring of service practices between Express and Ground. They will remain separate opco's, but from the "customer experience", they will merely be alternatives available depending on just how fast they need their package to arrive. The actual operating practices will become closer and closer - with a HEAVY emphasis on both opcos taking packages they can't get off to resi customers - to the local Office for them to worry about. Part of the whole goal of FedEx, is to get the Ground contractors and the Express Couriers to use the EXACT SAME operating practices - so customers know what to expect from FEDEX....

What are they going to do with rural customers who live 30, 50, or even more than 100 miles from the nearest Office?

 

[vantexan]

Supposedly, Office locations are going to increase the area they have dedicated to both inbound and outbound package holding. The real issue for Office is the sheer volume of outbound GROUND volume they have (over the counter sales to both commercial and non-commercial customers). Ground is going to have to eventually adopt a sweep system, to keep Office locations from being swamped in packages. FedEx knows the growth is happening, so they are trying to stay ahead of the tidal wave of packages.

In the next few years, you will see an increasing use of Office by FedEx, to accept and hold packages for both Ground and Express. They are already able to shift printing jobs around between different locations (customers come into one location for a print job, the job goes into the "system", and the actual work is performed by an Office location that has staff not being utilized.). This way, underutilized staff in one location can be put to work - increasing profitability. When the work is done, the completed printing is merely run to the location where the customer originally placed the request, then they are called when it arrives.



Supposedly, again.... Office will only get the DEX 8's from Express. Any DEX 3's will still go back to the stations for research.

Like all things with Express, this all has to do with reducing hours paid to employees of Express, and shift as much "work" to employees of opco's that are compensated at lower rates than Express employees.

The typical entry level Office employee makes in the $9-10 range (depending on market). The typical entry level Express CSA makes $14-15 (again, depending on market). Express wants to eliminate as many CSA hours as possible (having them run back and forth between the counter and the station cage, grabbing packages). By shifting of work to another opco (a common theme I've wrote extensively about), FedEx can reduce labor costs and therefore increase its profitability. Think of it as "outsourcing", but instead of being done on an international level, it is merely done on a FedEx opco level (Express would be equivalent to the US in this analogy, and Office would be the equivalent to India).

Years ago when many companies were moving overseas I remember thinking that at least they can't deliver pkgs from India. Never occurred to me back then that FedEx would create it's own Third World to outsource to. You really have to take your hat off to them. Must've been killing them not being able to take advantage of all that cheap labor. I'd love to know who had the initial idea to create the Ground division and was it their goal from the beginning to take Rodeway's structure and turn it into the green monster that ultimately would devour Express?

 

[UpstateNYUPSer(Ret)]

Does UPS charge for address correction? I think it's $12.50 per package at Fedex.

Yes--$10.

 

[Ricochet1a]

What are they going to do with rural customers who live 30, 50, or even more than 100 miles from the nearest Office?

These same customers live 30, 50 or even more than 100 miles form the nearest Express station too....

The end game is one delivery attempt, then left at Office. I'm presuming in areas without an Office, Express will bite the bullet and bring back DEX8's to the station - but still, in the future the goal is only one delivery attempt.

I'd have to imagine that Express would probably cook up some REX to charge customers like this who want to get another shot at signing for their package.

 

[Ricochet1a]

Years ago when many companies were moving overseas I remember thinking that at least they can't deliver pkgs from India. Never occurred to me back then that FedEx would create it's own Third World to outsource to.

Everyone constantly underestimates Fred...

I constantly remind readers (as to the mindset of "Express"), that Express thinks in terms of an "airline", when it comes to service. Just as manufactures can "outsource" their production to foreign locations, service industries can outsource their labor to lower cost "contractors" or operating companies which aren't part of the flagship company. Airlines just love to offer different service levels - and even have "regional" carriers (their outsourcing) to reduce costs while not worrying about getting into a war with their labor unions. FedEx's outsourcing destinations.... Ground and Office.

FedEx is doing the EXACT same thing as the airlines have done since the early 90s (I think this is where the idea first entered Fred's head).

- no more in-flight meals for the airlines, here's your bag of peanuts and 6 oz of drink of choice (two and soon only one delivery attempt for Express)

- going to a smaller service area, fly on the regional carrier (who are contracted to look very close to the main carrier)... FedEx has what used to be RPS, branded to look very "FedEx", while the people the customers actually see aren't FedEx employees at all.

- outsourcing call centers to contractors, who use a script to answer questions (ever call 1 800 Go FedEx?)...

You really have to take your hat off to them. Must've been killing them not being able to take advantage of all that cheap labor. I'd love to know who had the initial idea to create the Ground division and was it their goal from the beginning to take Rodeway's structure and turn it into the green monster that ultimately would devour Express?

Well.... I'd venture you'd only need one guess at that.... your good ol' friend Fred...

 

[Ricochet1a]

So I am guessing this mean they will have to eleminate guarentee hours? I have been doing something about it. Trying but it takes more than one person...Wish they would offer us "Old Timers" a buy out....Its been fun but the fun is over.

I've heard no word about eliminating guarantee hours.

I don't think Fred will try that. The pattern is to bring about change nice and slow, as to not create undue alarm. They got away with ending the pension plan, then shift pay. I think they'd be pushing their luck if they tried to eliminate minimum pay.

 

[SmithBarney]

I could see them eliminating guarantee hours, that would be a sure fire way to motivate sr. couriers out the door.
Granted I'd like to thing that a lawsuit would probably pop up. citing past practices, people could if they got off their duffs probably organize a lawsuit in regards to elimination of Split/2nd/3rd Shift premiums, since many ramp workers have their current positions because of this "benefit."

 

[MrFedEx]

I've heard no word about eliminating guarantee hours.

I don't think Fred will try that. The pattern is to bring about change nice and slow, as to not create undue alarm. They got away with ending the pension plan, then shift pay. I think they'd be pushing their luck if they tried to eliminate minimum pay.

I can see it. They seem to be very bold lately.

 

[Goldilocks]

I've heard no word about eliminating guarantee hours.

I don't think Fred will try that. The pattern is to bring about change nice and slow, as to not create undue alarm. They got away with ending the pension plan, then shift pay. I think they'd be pushing their luck if they tried to eliminate minimum pay.

I can see it happening in the very near future. There is not enough work for all of the people they are hiring. When DRA is implemented all hell is going to break loose because it does eliminate routes. Fedex will not pay employees to stand around. Guarantee hours will be another thing of the past, this is JMO of course.

 

[Mr. 7]

Guarantee hours will be another thing of the past, this is JMO of course.

 

[59 Dano]

As long as FedEx can make a buck at it they will offer it as a service.
Unfortunately most companies receiving COD's don't have the $$ to pay usually.
so they float along, and try to wait til Friday, knowing the check won't get there till Monday.

In this area it's mostly immigrants and businesses who don't like to carry a balance on anything, even if it's only 30 days. Around 50% of the COD pkgs going to immigrants at 1 station are either refused or sent back after 3 attempts. Weird.

 

[MrFedEx]

In this area it's mostly immigrants and businesses who don't like to carry a balance on anything, even if it's only 30 days. Around 50% of the COD pkgs going to immigrants at 1 station are either refused or sent back after 3 attempts. Weird.

How was The Panda Institute of Higher Learning? Did Ling-Ling and Poo-Poo teach the classes?

 

[59 Dano]

The supposed goal of Express (when it comes to signatures at residential stops), is to gradually follow the trend that UPS is making (Express is sooooo original....).

Like Apple and they are no good, either.

 

[59 Dano]

Any package that requires an address correction, has automatically cost Express more to fix the problem, than the potential profit was if it had a correct address in the first place.

That's not entirely correct. Our bad address surcharge ($11, or whatever it is now) is often pure profit along the lines of bank overdraft charges and credit card over the limit fees Sometimes the bad address hassle eats up the revenue from the surcharge, but it makes a ton of extra money.