FreightWaves: FedEx Ground Establishes 3-Tier Driver Contractor Grading System

(Image Source:
Wikimedia Commons
)
A reliable source has revealed that FedEx Ground is undergoing a thorough performance-grading process with its pickup and delivery partners, which might result in some contractors losing their monopoly on bidding on and negotiating contracts to serve routes.
FedEx Corp. (NYSE: FDX) has developed three performance categories for its ground delivery service in the United States: gold, silver, and bronze. According to the source, contractors that obtain a "bronze" grade—the lowest possible—which the business believes demonstrates bad efficiency, poor customer service, or both—would lose their previously exclusive negotiation rights for their routes and will be subjected to open bidding. This implies that the contractors risk having their routes taken away if the corporation decides that another bidder has offered a better price/value offering.
According to the source, those who receive a silver rating will be treated equally, with no prizes or sanctions. However, the source did not elaborate on what benefits "gold" contractors would receive. According to FedEx Ground, these medal-like ratings are being used for the first time. They will likely take place at each of FedEx Ground's roughly 600 facilities. Roughly 5,000 of the 6,000 independent contractors working for FedEx Ground are local pickup and delivery services. This new scheme will not include the 1,000 contractors that provide line-haul services, the source added.
FedEx Ground has stated that during the following month, there will be in-person forums held in each area to play out the process. The firm has admitted that it is "introducing a new data-driven strategy to delivering contract-specific findings via an online dashboard." According to the release, the findings "may be utilized to discover opportunities and distinguish service provider organizations with superior performance."
The new strategy is “part of how FedEx Ground is adapting its business to evolving market dynamics and customer needs and has been informed by input from many service provider businesses,” the company said in a statement. It, however, made no reference to any particular incentives or penalties.
For more exclusive reports, insights, and interviews on the latest updates in e-commerce and logistics, follow us on LinkedIn or join our community as a member.
Also worth your time
Track your parcel here
Event Highlights
Europe
Retail & E-Commerce
World Retail Congress 2023
Apr 25 - 27, 2023 | Hotel Arts Barcelona Carrer de la Marina, 19-21 08005 Barcelona, Spain
North America
Logistics & Supply Chain
Retail Supply Chain & Logistics Expo Las Vegas 2023
May 03 - 04, 2023 | LVCC Las Vegas
Europe
Retail & E-Commerce
Shoptalk Europe 2023
May 09 - 11, 2023 | Fira Gran Via, Barcelona, Spain
Europe
Retail & E-Commerce
IRX & eDX 2023
May 24 - 25, 2023 | NEC Birmingham, United Kingdom
Europe
Logistics & Supply Chain
DELIVER Europe 2023
Jun 07 - 08, 2023 | Taets Art and Event Park, Amsterdam, Netherlands
More discoveries
Reimagining Delivery Experiences With Bobbie Ttooulis
Mar 31, 2023
Yusen Logistics Sets Up Its Own Container Freight Station for Air Export Cargo
Mar 31, 2023
The Evolution of Last-Mile Delivery: From Traditional to Unconventional Methods
Mar 30, 2023
Alcott Global Podcast: Driving Business Growth and Operational Excellence in the Supply Chain
Mar 29, 2023
Levi’s Partners With Digital Fashion Studio Lalaland.ai to Test AI-Generated Models
Mar 29, 2023
A.P. Moller - Maersk Introduces Air Freight Service Between Europe and China
Mar 28, 2023
Alcott Global Podcast: Vision of Customer-Centricity in Supply Chain
Mar 27, 2023
Retail Case Study: Breaking Down Shein’s Winning Retail Strategy
Mar 24, 2023
Funding Roundup: Elyn, Pidge, Vue Storefront and Others Score Early-Stage Capital
Mar 24, 2023
Ninja Van: Ninja Xpress Introduces DWS Technology to Enhance the Productivity of SMEs
Mar 24, 2023
Astute Analytica: Global 3PL Market to Exceed $2.3 Trillion in Revenue by 2031
Mar 23, 2023
DHL Group Wraps Up 2022 With Record Revenue of EUR 94.4 Billion
Mar 22, 2023
USPS: Standard Delivery Time Remains Stable throughout Postal Service Network
Mar 21, 2023
3 Burning Questions: Emerging Trends in Logistics & Supply Chain With Ingka Group (IKEA)
Mar 16, 2023
The Alibaba Group Reports Q4 2022 Financial Results
Mar 16, 2023