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<blockquote data-quote="59 Dano" data-source="post: 5341272" data-attributes="member: 23516">Don&#039;t be surprised if hourly Express couriers deliver some Ground packages and contracted Ground drivers deliver Express packages.Neither business model is practical for the entire package delivery components of the FedEx Corporation.&nbsp; The hourly employee model is cost prohibitive but allows the highest level of employee control and direction.&nbsp; The contractor model is waaaay more cost effective but doesn&#039;t allow for much control.&nbsp; There are locations and circumstances that would warrant more of one than the other.&nbsp; Take Anytown, for example.&nbsp; It has a Ground facility, it has an Express station.&nbsp; The Anytown market consists of Anytown with a population of 100k (located within Anycounty, for a total population of 150k) and several surrounding counties that aren&#039;t very big.&nbsp; Theoretically, you could divert a significant amount of Ground freight to Express to further densify Anytown area and make the hourly employees more productive.&nbsp; Additionally you could divert a nice chunk of the Express rural freight to Ground to cut down on nonproductive units of hourly labor.&nbsp; What works in the Anytown market area might not work in the Othertown market area.It makes sense to identify the scenarios where one can clearly supplement the other.&nbsp; I&#039;m not saying that&#039;s what will or won&#039;t happen but Network 2.0 is designed to increase the flexibility of each opco and to guide a package to the truck that&#039;s best suited to service that address on that day.</blockquote>

[QUOTE="59 Dano, post: 5341272, member: 23516"] Don't be surprised if hourly Express couriers deliver some Ground packages and contracted Ground drivers deliver Express packages. Neither business model is practical for the entire package delivery components of the FedEx Corporation. The hourly employee model is cost prohibitive but allows the highest level of employee control and direction. The contractor model is waaaay more cost effective but doesn't allow for much control. There are locations and circumstances that would warrant more of one than the other. Take Anytown, for example. It has a Ground facility, it has an Express station. The Anytown market consists of Anytown with a population of 100k (located within Anycounty, for a total population of 150k) and several surrounding counties that aren't very big. Theoretically, you could divert a significant amount of Ground freight to Express to further densify Anytown area and make the hourly employees more productive. Additionally you could divert a nice chunk of the Express rural freight to Ground to cut down on nonproductive units of hourly labor. What works in the Anytown market area might not work in the Othertown market area. It makes sense to identify the scenarios where one can clearly supplement the other. I'm not saying that's what will or won't happen but Network 2.0 is designed to increase the flexibility of each opco and to guide a package to the truck that's best suited to service that address on that day. [/QUOTE]

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