The supply chain continues to undergo a transformation following the rise of continuous disruption. The unprecedented demand for e-commerce is treating a massive surge of interest and change within industry giants, including FedEx. FedEx SmartPost has merged with FedEx Ground Economy, which is now offering delivery seven days a week. Typically, shipments within FedEx would take 2 to 7 business days based on the distance of transit. A longer time is associated with transit outside of the contiguous 48 states. Simultaneously, that will mean a possible problem for tracking parcel spend in the short term for shippers.
The implication is simple. FedEx SmartPost offered a customized solution that accepts pickups or drop-offs, provides long-haul, and delivers packages to a USPS facility for final delivery by the postal carrier. In a sense, this is not necessarily a surprising development since USPS has made great strides in advancing Sunday delivery for the past several years. According to Stamps.com, USPS does deliver packages to large metro areas on Sundays, but they may incur an additional fee of $12.50 for Priority Mail Express.
Now, FedEx is changing the game on it and taking it all in-house.
However, this change means FedEx is taking responsibility for final mile delivery. With that in mind, it begs the question of how FedEx will pay that fee or if it will be passed along back to consumers (shippers) in this scenario for any packages returned within this service level.
But first, let's get back to the basics. Quite merely, FedEx has rebranded its existing SmartPost service as in-house service, FedEx Ground Economy, eliminating USPS and its possible delay in delivery. It had previously coincided with USPS efforts to offer seven-day delivery and allow e-commerce shipments to continue unimpeded. As of October 2020, FedEx had announced all SmartPost volume is being processed via the Ground network.
It is a clear strategic move and rebranding updated to reflect the commitment and sustainability that has become synonymous with FedEx Ground Economy. There is one other difference in the service days. Instead of previously displaying Monday to Saturday, FedEx Ground landing pages now show Monday to Sunday service.
Ultimately, FedEx is aligning its Ground Economy Service with its home delivery service and expanding its network into the furthest reaches of the 48 contiguous states without relying on USPS for final mile service.
Parcel management remains among the most complex and risky transportation management moves. Parcels are inherently subject to a greater risk for loss, damage, or inaccurate rating from their size and volume. When a company like FedEx chooses to outsource part of the final mile delivery effectively, it can further complicate the whole process. As a result, the final invoiced amount could vary widely and dramatically affect total transportation costs. As such, it becomes more imperative for today's organizations to leverage shipment bill auditing and comprehensive analytics solutions to avoid unnecessary costs.
Even while eliminating the hand-off to USPS, there is still the need for a hand-off in returns with this shilfing service level. So it is still imperative to thoroughly audit invoices for any differences or surcharges that arise from the changing of service providers when FedEx does work with USPS, even for returns. That together will help ensure rates are accurate and maximize return on investment via better customer service in final mile delivery for all parcels shipped.
Again, analytics and shipment auditing are the absolute necessities for success in today's transportation world.
The best-laid plans for staying strategic as a shipper will sell if the sight of the bigger picture is lost. In other words, missed opportunities can and do arise when it comes to shipment invoicing and settlement. That is why more organizations have decided to outsource auditing and analytics processes to make meaningful use of data and recapture excess transportation costs. Connect with Intelligent Audit to get started today.
Now, FedEx is changing the game on it and taking it all in-house.
However, this change means FedEx is taking responsibility for final mile delivery. With that in mind, it begs the question of how FedEx will pay that fee or if it will be passed along back to consumers (shippers) in this scenario for any packages returned within this service level.
But first, let's get back to the basics. Quite merely, FedEx has rebranded its existing SmartPost service as in-house service, FedEx Ground Economy, eliminating USPS and its possible delay in delivery. It had previously coincided with USPS efforts to offer seven-day delivery and allow e-commerce shipments to continue unimpeded. As of October 2020, FedEx had announced all SmartPost volume is being processed via the Ground network.
It is a clear strategic move and rebranding updated to reflect the commitment and sustainability that has become synonymous with FedEx Ground Economy. There is one other difference in the service days. Instead of previously displaying Monday to Saturday, FedEx Ground landing pages now show Monday to Sunday service.
Ultimately, FedEx is aligning its Ground Economy Service with its home delivery service and expanding its network into the furthest reaches of the 48 contiguous states without relying on USPS for final mile service.
Parcel management remains among the most complex and risky transportation management moves. Parcels are inherently subject to a greater risk for loss, damage, or inaccurate rating from their size and volume. When a company like FedEx chooses to outsource part of the final mile delivery effectively, it can further complicate the whole process. As a result, the final invoiced amount could vary widely and dramatically affect total transportation costs. As such, it becomes more imperative for today's organizations to leverage shipment bill auditing and comprehensive analytics solutions to avoid unnecessary costs.
Even while eliminating the hand-off to USPS, there is still the need for a hand-off in returns with this shifting service level. So it is still imperative to thoroughly audit invoices for any differences or surcharges that arise from the changing of service providers when FedEx does work with USPS, even for returns. That together will help ensure rates are accurate and maximize return on investment via better customer service in final mile delivery for all parcels shipped.
Again, analytics and shipment auditing are the absolute necessities for success in today's transportation world.
The best-laid plans for staying strategic as a shipper will sell if the sight of the bigger picture is lost. In other words, missed opportunities can and do arise when it comes to shipment invoicing and settlement. That is why more organizations have decided to outsource auditing and analytics processes to make meaningful use of data and recapture excess transportation costs. Connect with Intelligent Audit to get started today.
Set up a call with one of our experts to discuss how Intelligent Audit can help your business uncover opportunities for cost reduction and supply chain improvements through automated freight audit and recovery, business intelligence and analytics, contract optimization, and more.