By Emma Cosgrove / www.supplychaindive.com / December 17th, 2018
- FedEx is offering later pickups, some as late as midnight, to some retailers in a recently launched program called "FedEx Extra Hours," according to a company release.
- The new service is intended to allow afternoon orders to be shipped same-day to better ensure delivery within two days.
- "The majority of online orders are placed after 4 p.m., and 64 percent of online shoppers expect orders placed by 5 p.m. to qualify for next-day shipping. FedEx Extra Hours aligns with the needs of online shoppers, while offering retailers a way to balance inventory and reduce transportation costs," said Brie Carere, Senior Vice President and incoming Chief Marketing Officer for FedEx.
This move by FedEx isn't simply to expand the number of orders retailers can get out in a day. It acknowledges that, in order to service e-commerce customers the way they expect, evening fulfillment is necessary. Next-day pickup is not soon enough.
The move also is part of a clear trend of expanding shipping days, and now hours, seemingly on the way to logistics service and deliveries proceeding around the clock.
FedEx already announced the increased service days common during peak season will stick this time, expanding deliveries to six days per weekpermanently in 2019.
"The rise in demand for e-commerce goes beyond peak. It’s a year-round phenomenon and we are ready to meet that demand," Raj Subramaniam, executive vice president, chief marketing and communications officer at FedEx, said in a statement announcing the extra day of operation back in September.
It is unclear whether the "extra hours" service will continue beyond peak season. The release names Autozone and Best Buy as early adopters of the service.
See FedEx Release HERE
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