FedEx ground to deliver select US residential express shipments

By Lauren Fruncillo February 10, 2020 - 7:30 am

FedEx Ground will soon be delivering select day-definite, US residential Express shipments to help increase the efficiency and lower the cost of residential deliveries. In March, FedEx express will start its contract with FedEx ground to work as a solution in keeping up with rapid ecommerce growth.

“This move makes residential deliveries more efficient by putting the right package in the right network at the right cost to serve our customers,”

“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.”
– Raj Subramaniam, president and chief operating officer, FedEx Corp.

The rollout of the residential express shipments will begin in Greensboro, N.C. prior to including other markets in phases throughout the rest of the year. This kind of move is also important for a seamless delivery service that fits in with consumers needs. Many people want faster, reliable and efficient delivery services and by making them work better for both the company and its customers there is more room for stability in logistics.

“This allows FedEx Express to continue to do what it does best—delivering business-to-business and premium business-to-consumer time-sensitive packages. The FedEx Express integrated air-ground network is precisely the type of innovative business model that our labor laws are designed to protect. This change leverages the strengths and investments in the FedEx Ground network, making it the network of choice for residential packages fueled by e-commerce,”
– Raj Subramaniam, president and chief operating officer, FedEx Corp.

Safety and sustainability

The optimisation of last-mile residential deliveries also help FedEx improve safety and sustainability by reducing the number of delivery vehicles around neighbourhoods. Inefficiencies were noticed when both Express and Ground vehicles appeared in the same neighbourhoods, by handing some express packages to the Ground network FedEx are solving this problem.

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