During its investors day presentation Thursday (Feb. 12), the shipping company outlined its strategy for reaching that goal, including focusing its commercial strategy on “premium” business-to-business (B2B) and specialized business to consumer (B2C) markets “where customers value speed, precision, visibility, and reliability.”
Main targets here include healthcare, automotive, aerospace, data centers and “premium” eCommerce companies, the company said in a news release.
“FedEx is now entering a new era as we build the most flexible, efficient, and intelligent network in history. Our vision is simple: to make supply chains smarter for everyone,” FedEx President and CEO Raj Subramaniam said in the release.
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“Our physical scale combined with digital insight serves as the foundation of our indispensable industrial network with unmatched global reach, reliability, and expertise. What sets this moment apart is the role of digital intelligence. This is a true force multiplier that will support durable value with profitable growth, higher margins, stronger cash generation, and increased returns for our stockholders.”
Other parts of the company’s new strategy include using FedEx’s “two petabytes of data processed daily” and “unparallelled physical network,” to scale its digital operations, artificial intelligence (AI) and automation to discover new revenue streams.
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In addition, the company says it will continue to “modernize and optimize” its integrated air and surface networks.
As covered here late last year, FedEx on its most recent earnings call told investors it “is in the midst of one of the most ambitious corporate rewrites in modern logistics.” It involves the dismantling of a decades-old operating model and replacing it with “a unified, data-driven network designed to survive, and profit from, what leadership sees as ongoing volatility.”
Meanwhile, FedEx announced earlier this month it will begin letting enterprise shippers access new artificial intelligence-powered tools to improve post-purchase experiences, as businesses look to bolster customer engagement and operational efficiency after checkout.
“The expanded digital suite includes FedEx Tracking+ and FedEx Returns+, white-labeled solutions that can be embedded directly within a shipper’s own digital channels,” PYMNTS wrote at the time. “FedEx said the tools layer AI-driven capabilities on top of traditional tracking and returns functions to improve visibility, communication and responsiveness throughout the delivery life cycle.”
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