New FedEx offering focuses on closing the gap between digital and physical for merchants

Earlier this month, Memphis-based global freight transportation and logistics services provider FedEx rolled out a new data-driven commerce platform, which it said “connects the entire customer journey.”

Entitled fdx, company officials explained that it provides various customer benefits, including: growing demand; increasing conversion; optimizing fulfillment; and streamlining returns.

What’s more, FedEx added that by providing data and insights that improve visibility and connected capabilities across the customer journey, the new fdx offering will help merchants make more strategic logistics decisions from point of demand to delivery and returns.

“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,” said FedEx Corp. President and CEO Raj Subramaniam in a statement. “Through fdx, we will enhance our longstanding relationships with merchants of all sizes to help them optimize and grow their businesses through digital intelligence.”

FedEx said that the fdx offering will formally make its debut in the fall, with the platform now available, in the interim, as a private preview upon request.

Key capabilities of the new fdx platform, for merchants, cited by FedEx, include:

• growing consumer demand and connecting with high-value customers through the ShopRunner member network;
• increasing conversion and sharing estimated delivery dates and time window updates throughout the shopping experience—on product pages, in cart, and at checkout to increase delivery transparency and encourage conversion;
• improving visibility and control of shipments and seeing shipments in near real time to make informed -decisions and manage risk through FedEx Surround;
• understand carbon emissions impact through access to detailed carbon emissions data through FedEx Sustainability Insights to help make more sustainable supply chain decisions;
• streamlining returns and the ability to streamline, configure, and manage digital front-end return experiences, data exchange, and physical transportation for returns in one platform.
• optimizing order fulfillment and integrate real-time FedEx network insights into order management systems, which will help surface optimal shipping routes and speeds for more efficient, cost-effective deliveries (this will be part of the fdx launch this fall); and
• creating a custom post-purchase experience. Match brand standards from order tracking to returns. This capability will provide transparency with delivery dates and accurate shipment updates. (this will be part of the fdx launch this fall)

Tony Kreager, chief operating officer and senior vice president for FedEx Dataworks, provided LM with an overview of the new fdx offering.

LM: What drove the need for FedEx to roll out the new fdx platform? How long has it been planned, or in the works?

Kreager: FedEx’s physical scale and data insights from moving 15 million packages per day around the globe, put us in the unique position to deliver this first of its kind platform.

Current commerce solutions are inefficient and siloed across multiple platforms. Before FedEx announced the fdx platform, there was no other logistics company offering end-to-end commerce solutions to help customers of all sizes solve pain points across the entire customer journey. With fdx, FedEx is closing the gap between digital and physical—bringing it all together with one platform for merchants’ business needs.

FedEx Dataworks was launched as a new organization in January 2020 to answer the question: How can FedEx harness the power of our rich data ecosystem to drive better decision making, improve the efficiency of supply chains and unlock new opportunities for our network, our customers, and their customers?

LM: What are the main benefits of this platform for customers? What does it provide, or offer up, that was needed, or missing?

Kreager: Today, online shopping is more than shipping—it’s also demand, conversion, tracking, fulfillment, customer experience, and returns.

Many companies are trying to solve for individual elements of the customer journey, but none are considering it holistically. This siloed approach drains resources and makes it difficult for businesses to differentiate and scale in their market. This leads to a disjointed customer experience, a misinformed strategy, unproductive spending, and fulfillment inefficiencies.  

FedEx is an expert in delivering both the digital and physical aspects of the customer journey, making it easier for companies to grow demand, increase conversion, optimize fulfillment, and streamline returns. Unifying every stage of the customer experience delivers a stronger connection between a company’s brand, products, and consumers.

LM: Can you please provide a few basic examples of how the fdx platform works and is used by customers? 

Kreager: fdx is a comprehensive, data-driven platform with several different capabilities within. From demand to returns, the capabilities and insights can be leveraged differently depending on a company’s need. 

To clarify, the fdx platform is currently available in private preview. Here are a few examples of how fdx has helped our alpha and beta customers: Predictive Delivery Data: With this capability, we can anticipate expected delivery dates based on machine learning in real-time. We worked with Northern Tool to set delivery expectations from the product listing page to the shopping cart to check out. By setting precise expectations through every stage of the purchase journey, Northern Tool provides customers with a differentiated experience that boosts conversion, reduces customer service calls, improves cart abandonment, and increases loyalty.  

A streamlined returns experience empowers consumers to purchase more with low risk and ensures inventory is back on the shelf quickly and efficiently. We’re collaborating with Contravisual Brands to help them automate their returns, evolving a manual process to one that is self-service and customer-driven. From the front-end digital experience through data exchange to the transportation of physical items, every step of the process is managed in one platform. Companies can also customize their returns pages to their brand to create continuity and increase customer confidence.