FedEx announced on Thursday (May 30) a series of initiatives aimed at enhancing delivery for consumers, including seven-day delivery.
In a press release, FedEx said the efforts focus on extending the delivery week, taking back more of the last-mile delivery and handling large packages as more consumers purchase furniture and home decor online. “Each one advances the company’s commitment to continued superior service and increased efficiency in handling all eCommerce packages – small and large – within one ground network, seven days a week, year-round,” said Raj Subramaniam, president and chief operating officer of FedEx, in the release.
Starting in January 2020, FedEx’s holiday service – which delivers packages every day during the peak holiday season – will extend year-round to the majority of the people living in the U.S. The company also said it is integrating FedEx SmartPost package volume into FedEx Ground standard operations, and will also increase its large package capabilities.
In an effort to improve its last-mile deliveries, close to two million FedEx SmartPost packages that were previously delivered by the U.S. Postal Service will be integrated into FedEx Ground operations, and will be delivered by the same service providers who work for FedEx Ground. The CEO said that should result in density improvements and operational efficiencies, since all residential packages will be sorted and delivered within the same network.
“Delivery density has consistently been a challenge with eCommerce,” Subramaniam noted.
FedEx also said that starting in the fall, the vast majority of FedEx SmartPost package volume will be integrated into FedEx Ground operations for final delivery. The aim is to complete the transition by the end of 2020. With 10 percent of FedEx‘s ground volume coming from large packages, the company what it called “significant operational changes” – which include designing new facilities and adding equipment to existing facilities – to ensure safe and reliable handling of these large items.
“We have made significant investments in capacity, technology and automation at FedEx Ground over the past 20 years,” noted Subramaniam. “These investments have allowed us to gain ground market share for 19 of the last 20 years, and we are now ideally positioned to extend that growth, as the average daily volume for small parcels in the U.S. is expected to double by 2026. Expanding our operations to include Sunday residential deliveries further increases our ability to meet the demands of eCommerce shippers and online shoppers.”