The company is leveraging its data to offer visibility and supply chain management tools to customers, according to a third quarter earnings presentation released Wednesday.
“Building on our data and technology advantage, we announced new collaborations to provide value-added services for existing and new customers,” FedEx President and CEO Raj Subramaniam said Wednesday during an earnings call.
FedEx is also deploying physical artificial intelligence in its own operations, beginning with its use of Dexterity robotic loaders at one of its hubs, per the presentation. PYMNTS reported Sept. 1 that this deployment sees dual-armed robots autonomously load trailers at production scale.
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“When it comes to physical AI, our network is already one of the most automated in the world,” Subramaniam said. “We are making notable strides in automating our load and unload operations to help create a safer and more efficient environment for our team members.”
In shipping business, FedEx saw volume growth in both its U.S. Domestic business, which saw its revenue increase 10% year over year to $14.7 billion, and its International business, which saw its revenue increase 17% year over year to $7.5 billion, the presentation said.
During September, FedEx recorded average daily volume gains of 4% in Federal Express U.S. Priority and Deferred Package, 2% in Federal Express Ground Package, 9% in Federal Express International Export Package and 16% in Federal Express International Export Freight Pounds, per the presentation.
“We were particularly encouraged by the strength from our B2B customers, including the fast-growing data center vertical, which supported 28% year-over-year growth in international freight revenue,” FedEx Executive Vice President and Chief Customer Officer Brie Carere said during the earnings call.
FedEx has become more focused after spinning off FedEx Freight and selling FedEx Supply Chain, according to the presentation.
PYMNTS reported June 1 that FedEx Freight completed its spin-off from FedEx and is focused on the North American less-than-truckload (LTL) industry. PYMNTS reported July 1 that FedEx was planning to sell FedEx Supply Chain to CMA CGM Group as part of its continued corporate streamlining. This sale closed in October, Subramaniam said.
“We have taken meaningful strategic actions to become a more focused company, while deliberately allocating capital to create stockholder value,” Subramaniam said of these moves.
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