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A small nugget of what is sure to be many changes in the coming weeks
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<blockquote data-quote="Ricochet1a" data-source="post: 978701" data-attributes="member: 22880"><p>Did some calling around the past few days, confirmed the following:</p><p></p><p>1. Express Saver is gone. Plans are to have customer software updated to eliminate ES as an option and have customers' shipments that aren't time sensitive go through Ground. This is part of the implementation of the "master plan" I've wrote about extensively. Planning is already being done to notify customers that ES won't be available. DGO will receive instructions on how to process manual AB with ES chosen (most likely automatically bump service up to 2nd Day). </p><p></p><p>2. 2nd Day will still be offered as an option. Operational Planning (beyond existing business planning) is being done on how to shift delivery of 2nd Day volume over to Ground with minimal disruption. Cost advantages in getting the Ground network to handle the delivery of this volume are tremendous. Delivery of 2nd Day should be shifted over to Ground within 18-30 months from now.</p><p></p><p>3. Delivery manifesting WILL be put into place come September at latest. UPS and Ground already have this capacity, Express feels confident enough that it can be implemented this Autumn. They want to work on perfecting the system this Autumn and fully expect to have peak 2012 utilizing the software. </p><p></p><p>4. Overtime. Policy is no overtime is to be SCHEDULED. This means that the advance scheduling that is done for each week CANNOT have employees scheduled for more than 40 hours. If an employee goes over 40 hours to meet operational need (filling in for sick calls, operational need, etc.) this is acceptable. However, each station is supposed to keep total overtime hours at less than 8% of total hours. Sr. Managers that cannot accomplish this goal will be held to account. Still no word on how PEOPLE will be modified to deal with situations of open shifts needing to be filled and having volunteers applying to fill extra shifts but who would accumulate overtime in doing so. </p><p></p><p>5. Vehicle fleet will gradually be converted to smaller, more fuel efficient Sprinter type vehicles. This is keeping with another long range goal.</p><p></p><p>6. With successful transferal of delivery of 2nd Day volume over to Ground, Express will only deliver overnight product (pickup operations will remain unchanged). This is seen as being implemented 36 months from now. No employees will be let go, but "Legacy" employees will be offered incentives to either retire or take a payout to leave. The overwhelming majority of overnight volume can be delivered by routes staffed by part-time employees. With AM sorts no longer "clogged" by 2nd Day volume, sort times will be shorter. ROADS stop ordering capability will further speed up sorts, enabling volume to be rapidly sorted to correct trucks then placed into stop order solely by referencing ROADS stop ordering data. All of this is under the "right-sizing" initiative.</p><p></p><p>7. Express line haul capacity will shrink somewhat. This is due to the elimination of ES, and to updates to customer software giving them the option of utilizing Ground service if a 2 day delivery time can be met. </p><p></p><p>8. Options are being looked into whether or not to offer time definite guarantee for Ground service. Models are being run on whether to offer a time definite guarantee on Ground service with the paying of a surcharge (basically "insurance" for delivery time). </p><p></p><p>9. Cheetah will be fully implemented within Office. The test markets have been successful, and FedEx fully intends on offering customers same-day delivery options within major metro areas at costs LOWER than current Express overnight service. The "cannibalization" is deliberate, since margins on the Office product will be greater than currently exist with Express product. </p><p></p><p>No confirmation on unifying of dispatch functions between Express and Ground, but it would be nearly impossible to implement this model without a unified dispatch functions. Express and Ground will remain separate in name (to maintain cost advantages due to labor law), but in function, they will be HIGHLY integrated.</p><p></p><p>No word on exactly how early retirement incentives or buyouts are to be conducted. The goal will be to get as many as possible to leave without any financial incentive. With the full implementation of technology (ROADS manifesting and stop ordering), experienced (highly paid) Couriers are no longer needed. Service disruptions are anticipated, but the savings in labor costs will more than make up for any loss of efficiency in individual Courier capability. </p><p></p><p>No indication that Couriers will be replaced by Handlers on the AM sorts. Combined sort times (once 2nd Day is shifted over to Ground for delivery) and on-road times for delivery Couriers will fall below 6 hours per day - meaning that full-time Couriers will only be needed in exceptional circumstances. There is planning on whether to offer part-time shifts that have 4 days/under 30 hours worked as options to further reduce full-time employees. </p><p></p><p>With the shift to Sprinter type vehicles, the need for "DOT Couriers" will drop. Business planning is being done on how to increase the number of "Courier-Handlers" to operate Sprinter type vehicles/routes and further increase cost savings for Express.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 978701, member: 22880"] Did some calling around the past few days, confirmed the following: 1. Express Saver is gone. Plans are to have customer software updated to eliminate ES as an option and have customers' shipments that aren't time sensitive go through Ground. This is part of the implementation of the "master plan" I've wrote about extensively. Planning is already being done to notify customers that ES won't be available. DGO will receive instructions on how to process manual AB with ES chosen (most likely automatically bump service up to 2nd Day). 2. 2nd Day will still be offered as an option. Operational Planning (beyond existing business planning) is being done on how to shift delivery of 2nd Day volume over to Ground with minimal disruption. Cost advantages in getting the Ground network to handle the delivery of this volume are tremendous. Delivery of 2nd Day should be shifted over to Ground within 18-30 months from now. 3. Delivery manifesting WILL be put into place come September at latest. UPS and Ground already have this capacity, Express feels confident enough that it can be implemented this Autumn. They want to work on perfecting the system this Autumn and fully expect to have peak 2012 utilizing the software. 4. Overtime. Policy is no overtime is to be SCHEDULED. This means that the advance scheduling that is done for each week CANNOT have employees scheduled for more than 40 hours. If an employee goes over 40 hours to meet operational need (filling in for sick calls, operational need, etc.) this is acceptable. However, each station is supposed to keep total overtime hours at less than 8% of total hours. Sr. Managers that cannot accomplish this goal will be held to account. Still no word on how PEOPLE will be modified to deal with situations of open shifts needing to be filled and having volunteers applying to fill extra shifts but who would accumulate overtime in doing so. 5. Vehicle fleet will gradually be converted to smaller, more fuel efficient Sprinter type vehicles. This is keeping with another long range goal. 6. With successful transferal of delivery of 2nd Day volume over to Ground, Express will only deliver overnight product (pickup operations will remain unchanged). This is seen as being implemented 36 months from now. No employees will be let go, but "Legacy" employees will be offered incentives to either retire or take a payout to leave. The overwhelming majority of overnight volume can be delivered by routes staffed by part-time employees. With AM sorts no longer "clogged" by 2nd Day volume, sort times will be shorter. ROADS stop ordering capability will further speed up sorts, enabling volume to be rapidly sorted to correct trucks then placed into stop order solely by referencing ROADS stop ordering data. All of this is under the "right-sizing" initiative. 7. Express line haul capacity will shrink somewhat. This is due to the elimination of ES, and to updates to customer software giving them the option of utilizing Ground service if a 2 day delivery time can be met. 8. Options are being looked into whether or not to offer time definite guarantee for Ground service. Models are being run on whether to offer a time definite guarantee on Ground service with the paying of a surcharge (basically "insurance" for delivery time). 9. Cheetah will be fully implemented within Office. The test markets have been successful, and FedEx fully intends on offering customers same-day delivery options within major metro areas at costs LOWER than current Express overnight service. The "cannibalization" is deliberate, since margins on the Office product will be greater than currently exist with Express product. No confirmation on unifying of dispatch functions between Express and Ground, but it would be nearly impossible to implement this model without a unified dispatch functions. Express and Ground will remain separate in name (to maintain cost advantages due to labor law), but in function, they will be HIGHLY integrated. No word on exactly how early retirement incentives or buyouts are to be conducted. The goal will be to get as many as possible to leave without any financial incentive. With the full implementation of technology (ROADS manifesting and stop ordering), experienced (highly paid) Couriers are no longer needed. Service disruptions are anticipated, but the savings in labor costs will more than make up for any loss of efficiency in individual Courier capability. No indication that Couriers will be replaced by Handlers on the AM sorts. Combined sort times (once 2nd Day is shifted over to Ground for delivery) and on-road times for delivery Couriers will fall below 6 hours per day - meaning that full-time Couriers will only be needed in exceptional circumstances. There is planning on whether to offer part-time shifts that have 4 days/under 30 hours worked as options to further reduce full-time employees. With the shift to Sprinter type vehicles, the need for "DOT Couriers" will drop. Business planning is being done on how to increase the number of "Courier-Handlers" to operate Sprinter type vehicles/routes and further increase cost savings for Express. [/QUOTE]
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A small nugget of what is sure to be many changes in the coming weeks
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