QDM stories:
E-commerce shipments
E-commerce shipments
QDM stories:
E-commerce shipments
E-commerce shipments require a dynamic delivery service; FedEx has an answer
As e-commerce deliveries rise, it gets more challenging to deliver efficiently — both in terms of cost and operations. A FedEx Ground team focused on pickup and delivery technology came together to address this challenge using Quality Driven Management (QDM), the innovative quality system developed by FedEx.
The team first worked to understand the current pickup and delivery process. By following Customers Define Quality, a core QDM Principle, they focused on what could enable independent service provider companies — which deliver FedEx Ground® packages — to handle higher e-commerce volume. One of the biggest challenges, they discovered, was the greater number of large packages.
Customers spoke; we listened
“Efficiently handling the surge of e-commerce large packages has been a challenge for both FedEx Ground systems as well as service provider companies,” says Steve Legg, managing director of Pickup and Delivery Systems Engineering. To tackle it, the team knew it needed to stay true to another QDM Principle: Optimize Business Performance.
“The team sought service provider input to build new functionality to enable service provider companies to carve out routes dedicated for larger packages, thus freeing up the other routes to be more productive,” Legg says. They tested the route optimization technology concept in three contracted service areas to see how well it increased productivity and efficiency. And they gave service provider companies a forum to share feedback on the process as they developed the new application.
With almost 150 people involved, including service provider companies, vendors and other stakeholders, a third QDM Principle came into play: Quality Involves Teamwork. Clear communication and training were essential during development and when it came time to launch their solution throughout the network.
In addition, the team made sure to support one another to prevent burnout as they worked long hours to build the solution. “Throughout the project — especially during the summer and rollout — our teams filled in for each other,” says Erin Greco, director of Information Technology, FedEx Ground First and Last Mile Planning. “We always encouraged team members to take time off to refresh and be with their families, which we believe was critical to the success of the project.”
The route to success
Within a matter of months, pickup and delivery productivity and efficiency showed clear improvement. The team kept in close contact with service provider companies to ensure the functionality was working for them and to learn from failures to find opportunities for improvement.
"Feedback suggested that while route optimization technology was valuable, service provider companies still needed the ability to influence the optimization to better meet their business needs,” says Jeff Coull, project manager, Pickup and Delivery Systems Engineering. “Thanks to their feedback, we’ve continued to build out capabilities that increase the value of the application to service provider companies."
Despite peak levels of e-commerce shipments due to the global pandemic, the new application helped FedEx Ground handle route planning for operations in the U.S. and Canada — even, in the case of the New York Metro District, through a major snowstorm. “Our highest-volume day came the Friday after a Thursday snow event,” says Sig Pineda, New York Metro District territory manager, “but our team was prepared. Together, we were able to execute a COVID-era masterpiece with route optimization technology helping us make it happen."
Quality is a team sport
QDM brings everyone to the table and gives them a voice for how we can all be better at serving FedEx customers.