FedEx to Curb Duplicate Deliveries in E-Commerce Efficiency Push - BNN Bloomberg
FedEx Corp. is revamping its operations to hand off some deliveries from its overnight division to its separately-run ground business, in a new effort to wring more profit from surging e-commerce.
The arrangement is part of Chief Executive Officer Fred S’s strategy to tackle the flood of residential packages from online shopping, which can be more expensive to handle because fewer are left at each stop. By having Express hand off less time-sensitive parcels to its ground unit for final delivery, the company will reduce cases in which a driver from both units visit the same customer.
“We are duplicating efforts and diluting our delivery density, including the number of packages delivered at each stop,” Chief Operating Officer Raj Subramaniam said in a letter to employees. “This move is an effort to make costly last-mile deliveries more efficient.”
FedEx Corp. is revamping its operations to hand off some deliveries from its overnight division to its separately-run ground business, in a new effort to wring more profit from surging e-commerce.
The arrangement is part of Chief Executive Officer Fred S’s strategy to tackle the flood of residential packages from online shopping, which can be more expensive to handle because fewer are left at each stop. By having Express hand off less time-sensitive parcels to its ground unit for final delivery, the company will reduce cases in which a driver from both units visit the same customer.
“We are duplicating efforts and diluting our delivery density, including the number of packages delivered at each stop,” Chief Operating Officer Raj Subramaniam said in a letter to employees. “This move is an effort to make costly last-mile deliveries more efficient.”
