Consultant’s Insight: FedEx introduces commerce platform fdx

FedEx Chief Executive Raj Subramaniam unveiled a “data-driven commerce platform” called fdx that aims to make it easier for companies to grow demand, increase conversion, optimize fulfillment and streamline returns. The announcement was made this week at the National Retail Federation ’s “Big Show” in New York . [caption id="attachment_69752" align="alignright" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo Next columnist[/caption] “ FedEx is transforming into a digitally led business powered by our extensive physical transportation network, leveraging our scale and insights from moving 15 million packages per day,” Subramaniam said in a release. “Through fdx, we will enhance our longstanding relationships with merchants of all sizes to help them optimize and grow their businesses through digital intelligence.” Fdx will combine several services, including FedEx’s online e-commerce platform, ShopRunner, which it acquired in 2020; Sustainability Insights, launched last year; and FedEx Surround, a risk-mitigation tool launched in collaboration with Microsoft in 2020. Fdx will also include, when it launches in the fall, an order management optimization tool that will allow users to integrate FedEx network insights with order management systems to optimize shipping routes and speeds, according to the press release. The end-to-end platform promises visibility in near real-time to manage shipments and provide estimated delivery times and windows. “Today, our role in shopping is more than shipping,” Subramaniam said at the Big Show. “It’s also demand. It’s conversion. Fulfillment. Visibility. And, of course, returns. Currently, companies must rely on several separate solutions to manage all aspects of their e-commerce business.” This siloed approach, Subramaniam told the audience, “is costly, inefficient and causes a disjointed customer experience, making it difficult to differentiate and scale in the market.” Following UPS’ lead While several retail and logistics analysts perceive this new service offering as a potential competitive threat to Amazon , it is instead in answer to UPS ’ Supply Chain Symphony platform, which was announced in November. It is possible that, following UPS’ announcement, FedEx felt it should promote its service as early as possible. The Supply Chain Symphony platform integrates previously stand-alone UPS tools: UPS shipping services; Global logistics and distribution; Freight forwarding and customs brokerage; Express Critical for same-day delivery; Mail Innovations to induct mail into the U.S. Postal Service system; and Coyote Logistics Services. UPS’ integrated logistics system can give companies a competitive advantage, according to UPS’ announcement. UPS customers who use this cloud-based software-as-a-service solution benefit from improved customer service, collaboration, asset utilization and forecasting accuracy, the company said. “UPS Supply Chain Symphony delivers robust visibility across the UPS global portfolio of services so that our customers can view and orchestrate better outcomes,” UPS Supply Chains Solutions President Bill Seward said in the announcement. End-to-end platforms proliferate market Walmart offers its online platform, GoLocal, which allows retailers to access Walmart’s network of gig-based delivery drivers and to manage curbside pickup operations. Since its launch in 2021, Walmart’s GoLocal and Walmart Commerce Technologies have partnered with software company Salesforce ’s AppExchange. The partnership lets retailers use the Walmart Commerce Technologies “Store Assist” app to leverage their local stores as fulfillment centers. Walmart’s GoLocal partnered in September with SmartKargo , which works with airlines to enable an alternate delivery network for established carriers. The GoLocal solution provides two-day and next-day small package transportation options. Amazon has not introduced an online logistics platform to its customers; however, it’s likely it will eventually offer one. As the number of end-to-end online logistics platforms grows, customers will struggle with evaluating the best solution and the costs associated with each one.

Consultant’s Insight: FedEx introduces commerce platform fdx

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