Network 2.0, MEDALS process, what is it? The return to normal, and more!
We hope everyone has had a great start to the year—late last year, Network 2.0 was introduced to the world as a way for FedEx corporate to restructure certain business areas. Sunday delivery is being rolled back in many service areas where it’s unnecessary. Sunday deliveries will continue in larger metro areas as the demand is robust for these markets. Redundant management roles were eliminated from the payroll, and now a Gold, Silver, and Bronze medal process will enable contractors to see where they stand.
We have always said that P&D operators must be hands-on with their business. I wish I could make that last sentence a font size larger! Over the last year or so, many people have come in and gotten spit right back out. Speaking to these people, they were all told that they could be absentee route owners. They had no clue how their own business was performing. If you want to buy something and forget about it, talk to a financial advisor about stocks or bonds, and don’t buy a company of any kind! You can no longer get away with being an inefficient contractor!
Here is what we know so far about the new MEDALS system:
- This is being rolled out in waves across the network through March 2, 2023.
- It will factor key results and measurements (safety, service, customer engagement, etc.) into an easy-to-read summary for ISP and Management. This algorithm will determine if the ISP is Gold, Silver, or Bronze.
- AO or BCs will meet with station management monthly to review results.
- A dashboard will eventually be rolled out for contractors to keep up with their results.
- Management will notify the ISP six months before the ISP contract expires.
- Being classified as Gold allows the ISP to negotiate for a new ISP Agreement and first acceptance. They will also be provided additional stops, growth opportunities, and more.
- Silver will also allow the ISP to negotiate for a New ISP Agreement and first acceptance.
- Bronze may not be offered the chance to negotiate for a new ISP Agreement unless it can improve in the next three months. At that time, an evaluation is determined and finalized.
We will have many more updates on the medal system as it rolls out over the next few weeks and additional details become available.
Overall, we are on a long road to returning to normal. The covid surge is getting further behind us as each day rolls by. Despite the news reporting that the economy is dangling off a cliff, P&D and line haul operations are seeing consistent weekly settlements. Historically, February is a slow month before tax returns hit consumers’ bank accounts. You thought you saw many TVs and exercise equipment delivered during peak. That’s nothing compared to March and April!
Thank you again for taking the time to read our thoughts and opinions. We appreciate you stopping by. Until next time, take care!