A network system and method capable of creating separate output queues on demand to improve overall network routing performance are disclosed. The network system, in one embodiment, includes a classifier, an egress queuing device and a processor. The classifier provides a result of classification for an incoming data flow in accordance with a set of predefined application policies. The egress queuing device is an egress per flow queue (“PFQ”) wherein a separately dedicated queue can be dynamically allocated within the egress PFQ in accordance with the result of classification. The processor is configured to establish a temporary circuit connection between the classifier and the egress queuing device for facilitating routing process.