Beginning in March, FedEx Express has agreed to work with FedEx Ground for the transport and delivery of select day-definite, residential express shipments. This is part of the company’s plan to increase the efficiency and lower the cost of residential deliveries as e-commerce continues to grow fast.
FedEx Express packages will be selected for delivery by FedEx Ground if they are residential deliveries for which FedEx Ground can meet the service commitment. The company will begin rolling this out in Greensboro, North Caroline, with the plan to include other markets throughout the year.
Raj Subramaniam, president and chief operating officer, FedEx Corp, said: “We continue to flex our network to stay ahead of e-commerce growth, and that includes adjustments to better handle the demand for residential deliveries while lowering our cost to serve.”
He added: “This change leverages the strengths and investments in the FedEx Ground network, making it the network of choice for residential packages fuelled by ecommerce.”
FedEx hopes that by optimising last-mile residential deliveries, it will reduce the number of delivery vehicles. The company added that it is further exploring and investing in new last-mile delivery technology and functionality that customers are requesting.
FedEx’s previous and ongoing investments in the e-commerce business division include:
FedEx Ground: initiatives include Sunday residential deliveries for most of the U.S. population, and the buildout of FedEx Ground’s large package handling capabilities for items like TVs and furniture.
FedEx Freight Direct: according to the company, this service has expanded to more than 80% of the contiguous U.S. population. The new e-commerce solution offers delivery of bulky items by FedEx Freight team members into residences and businesses.
Retail Network – The retail network now includes more than 14,000 FedEx hold locations, including pick-up and drop-off services at more than 2,100 FedEx Office locations retailers such as Walgreens, Albertsons, Kroger and Dollar General. According to the company, around 80% of the U.S. population now lives within five miles of a FedEx hold location.
FedEx Delivery Manager – Package recipients can customise home deliveries to fit their schedules, by requesting that their shipment be redirected to a different location, including a FedEx Hold location, and leaving instructions for the driver.
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