Is it impossible to merge the two separate Ground and Express companies due to the debilitating disruption that such a merger would cause for the customer, Express employees and low-cost, Ground contractor model? Can FedEx ever operate as efficiently as UPS and drive meaningful profit gains with two separate and distinct, Ground and Express operating companies in the US?Ģ. FedEx has never acknowledged that the dual, Ground and Express, op-co model is not efficient. There are two very real issues/questions in play here:ġ.
Recently, FedEx has been under intense pressure from the Wallstreet analyst community as they have been missing EPS/profit targets and blaming this poor performance mostly on a slowing, global economy. As evidence of this, even though FedEx has significantly lower employee costs than UPS, they are consistently less profitable than their primary competitor. It is also a bit cumbersome for the customer, and this applies to both shippers and recipients, to have separate Ground and Express pick-ups and deliveries. You don’t have to be a Harvard Business School MBA to understand why this condition matters, as operating two separate companies to pick-up and deliver Ground and Express packages is not efficient. Distinct management teams for the two separate operating companies.
#DROP OFF FOR FEDEX GROUND DRIVERS#
FedEx Express drivers are FedEx employees while FedEx Ground drivers are not FedEx employees and work for contractors that manage/provide Ground services in a defined geography. Two pick-up and delivery operations to include separate local terminals/trucks and drivers, operating under radically different employee models.While numerous support operations have been merged to improve and simplify the customer experience, FedEx Ground and FedEx Express are still two, very separate transportation companies and function separately in the following ways: Uniformed truck branding that no longer distinguishes between the separate Ground and Express companies and trucks.Unified barcode technology that allows the two separate operating companies to scan and capture data across both companies.Single, unified business organizations that represent Ground and Express sales/marketing, technology support and customer service.In addition to the changes related to drop-box package acceptance policy, here are some of the additional changes that FedEx has implemented over the years to unify the customer experience of the two separate and distinct, Express/Ground operating companies. This is just another incremental step FedEx has taken to diffuse customer confusion over having two separate operating companies that provide Ground and Express services. The disclaimer regarding delayed Ground shipments tendered via the Express drop-box tells us that FedEx is servicing the drop-box via their separate Express company and not tendering the Ground shipment to its separate Ground company until the following day.Ĥ. This change supports the quickly growing e-commerce, Ground returns business segment and will permit a customer to drop off a Ground returns shipment at an Express drop-box.ģ. This will ease the confusion and anxiety of the shipper that previously went to drop off a Ground shipment at an Express drop box and was greeted with a message that stated you could not put a Ground shipment in an Express drop-box.Ģ. FedEx Express has finally decided to officially accept FedEx Ground shipments at its Express network of drop-boxes. So, what does the fine print mean and why does it matter?ġ. A disclaimer warns that FedEx Ground shipments may be delayed by one day.
FedEx Ground shipments are now accepted via the FedEx Express drop-box network.If you look closely at this freshly relabeled, FedEx Express drop-box in the title graphic, it contains some interesting new usage instructions that tell us the following:
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