FedEx Exec Says Control Beats Speed in the New Delivery Race

Consumer expectations have a pesky way of hardening into demands. And those demands have habit of shaping entire sectors.

For FedEx, the demand-led transformation of shipping and logistics is not simply operational; it is existential.

“We ship 2 trillion in GMV (gross merchandise value) a year… 17 million packages a day,” FedEx SVP Jason Brenner told PYMNTS. “The big guys and the small mom and pops alike, they have a customer promise, and we are the last step in delivering on that promise.”

As eCommerce matures and consumer expectations turn from aspirational to table stakes, the final mile of delivery is becoming a defining moment of brand experience. In a market shaped by Amazon-era immediacy, expectations have become both the benchmark and the constraint.

“We are competing against evolving consumer expectations and making sure we can empower our customers to deliver against them,” Brenner said.

After all, a reliable delivery builds trust; a missed commitment erodes it. Over time, those moments can compound into measurable differences in retention and profitability.

To that end, FedEx last week (March 24) debuted a program with last-mile delivery solution company OneRail designed to let customers get deliveries within two hours.

See also: FedEx Teams With OneRail to Offer Same-Day Local Delivery

Why Logistics Is Moving From Speed to Precision

The dominant narrative in logistics has long been speed. Same-day delivery, once a novelty, is now table stakes in many categories. But Brenner argued that leading retailers are moving beyond a singular focus on velocity.

“The biggest leading retailers talk less about speed at all cost, and they talk more about control, flexibility and optionality,” he said.

The implication is that logistics must adapt to context. Speed remains important, but predictability and control increasingly define the customer experience. In this model, delivery becomes an extension of the product itself. The shift reflects a more nuanced understanding of consumer needs. Not all purchases demand immediacy. A low-cost apparel item may tolerate a slower, free delivery window. But larger, higher-stakes purchases require precision.

“If you have more optionality on the front end, you should be driving better conversion,” Brenner said.

Customers presented with clear, tailored delivery options are more likely to complete purchases. But the impact extends beyond conversion.

“If we’re able to delight you with the ability to deliver in that fixed time period, that will drive customer loyalty and then that powers that lifetime value equation,” Brenner said.

That doesn’t mean marrying precision with speed across logistics and shipping is as easy as flipping a switch.

“This is really, really hard to scale, and it’s costly and complex to manage,” Brenner said, noting that FedEx’s strategy is to absorb that complexity by offering a unified model that integrates with existing retailer relationships while enabling advanced delivery capabilities.

How AI as Infrastructure Is Turning Data Into Outcomes

FedEx’s network now involves thousands of carriers and tens of thousands of drivers, each handling dynamic routing decisions under tight service-level agreements. The company’s answer to managing this complexity is what it terms intelligent orchestration: algorithmic systems that continuously assign deliveries based on constraints such as time windows, geography and cost.

“All of those decisioning models are powered by AI,” Brenner said. “Which driver should we give this to? Which carrier? Which route?”

The emphasis is less on automation for its own sake and more on achieving reliability at scale. As delivery windows narrow from end-of-day commitments to specific hourly slots, the margin for error shrinks. Artificial intelligence can become the mechanism that reconciles complexity with consistency. And if AI enables execution, data defines the opportunity.

“We’re moving from the era of ‘we have a lot of data — what do we do with it?’ to how do we leverage data and AI to drive outcomes?” Brenner said.

Retailers have long collected vast amounts of operational data, often without clear pathways to monetization. Growth, profitability, and customer lifetime value sit at the top of the retailer outcome hierarchy, supported by intermediate metrics such as conversion rates, operational efficiency, and repeat purchase behavior.

Brenner’s message to retailers is to rethink the boundaries of logistics. “Stop thinking about supply chain as operations and only as operational data,” he said. Instead, companies should consider how logistics capabilities can “drive metrics that drive lifetime value.”

FedEx’s own initiatives illustrate how logistics data can influence these key metrics. Predictive delivery estimates, displayed at the point of purchase, provide customers with precise arrival windows. In one case, a retailer implementing the feature saw conversion increase by 6%.

“Supply chain has historically been a back-of-office conversation,” Brenner said. “It’s increasingly a boardroom conversation today, and a customer experience conversation, even a marketing conversation.”