FedEx must incorporate flexible and innovative solutions with businesses scaling to global markets for new customers. FedEx prioritizes this experience to firms looking to penetrate global markets.
Its operation is managed through independent networks collaborating in one system. It is implicit that FedEx may modify each network to deliver high-end service to customers globally.
The official FedEx website features an available tracking tool called FedEx tracking. By keying in the tracking ID, customers receive real-time updates on their shipments. Moreover, FedEx tracking allows customers to custom name their multiple shipments.
FedEx operates globally and is secure. Read along to uncover the precision of the FedEx tracking and its relevant features but before that,
How Accurate Is FedEx Tracking?
FedEx tracking is reliable and has an accuracy of around 30 minutes. However, some factors may vary this accuracy. The FedEx tracking can vary based on your geographic location and how often the firm scans commodities.
FedEx collects your shipment from a store and scans it into your system. You’ll access concise shipment information on their site using your FedEx tracking.
Occasionally, the tracking may provide a delivery estimate of up to 4 business days. We may assume that this buffer period provides FedEx room to serve its customers.
How FedEx Became The World’s Carrier
Did you know that FedEx transported parts of the Titanic? FedEx flew parts of Titanic from Milan, Italy, to Atlanta, Georgia.
The company shipped 90 tons to the Titanic’s art exhibition. Let’s explore the corporate synergies that elevated FedEx.
FedEx suffered massive capital bleeding that threatened to run them out of business like any other business.
The company realized explosive growth in the early 80s. This rapid expansion prompted the firm to extend its service reach in the US.
However, the expansion brought with it some logistical hurdles. To mitigate the problem, FedEx introduced handheld barcode scanners. Tracking shipped parcels became easier.
FedEx’s corporate strategy involved acquisitions of existing shipping services. Gelco Express and Fly Tiger, couriers with worldwide reach, were acquired by FedEx. These acquisitions opened up FedEx services to the world markets.
Furthermore, FedEx acquired four more companies to scale up its business. Tower Group International and World Tariff acquisitions further strengthened FedEx services. These provide logistics services, custom duty, and tax info company information.
Two of its most strategic acquisitions are Kinko’s (a retail chain) and Parcel Direct. FedEx retail access expanded to all Kinko’s outlets at that time. The Parcel Direct acquisition solidified FedEx’s alliance with UPS.
To further streamline its operations, FedEx introduced an electronic customs clearance system. The shipment process is expedited even when still en route. This move significantly boosted FedEx’s business in Europe and Asia.
The express service generates the majority of FedEx revenues. Its specialization in time-sensitive international express air freight service delivers millions of packages daily.
The company understands that it needs to enhance its services to stay ahead of the game. It is known for more comprehensive delivery coverage, more options for weekend deliveries, and increased services for shipping dangerous goods.
Moreover, the company diversified its operations into other related businesses. Such include the FedEx Priority Alert and SenseAware, which enable customers to track their shipments. Sensors are placed on packages to detect and send the environmental conditions of the packages.
Furthermore, the system allows FedEx to increase its process efficiency using predictive analytics. The SenseAware system also helps FedEx in clarifying damage liabilities.
Despite the financial turmoils, FedEx scaled its services and operations rapidly. As a result of its hard work, the company recreated the global carrier business.
How Does FedEx Make Money?
FedEx makes money primarily by delivering packages across the world. An estimate of 15 million shipments is processed by FedEx daily. There are four shipment categories from which FedEx earns money.
Aside from package delivery, FedEx has other forms of generating revenue. Its broad transport options, e-commerce, and business-related services are embedded in its core segments.
Firstly, FedEx Express earns the firm money on time-sensitive shipments. This segment incorporates ground delivery and cargo shipment. This service is run directly from Memphis, Tennessee.
North American customers have access to the FedEx Ground segment. This section handles B2B and household delivery, and SmartPost and FedEx Home Delivery facilitate this segment’s operations. The headquarters of the FedEx ground segment is in Pittsburgh, Pennsylvania.
The third segment, FedEx Freight, is headquartered in Memphis, TN. This section provides several less-than-truckload choice designs according to customer demands. Its implementation covers most parts of North America.
Lastly, FedEx generates revenue from FedEx Services. These services are technological integrations whose products satisfy customers’ needs. Its features include IT services, solutions design, and data management.
The Merits And Demerits Of FedEx
FedEx has revolutionized the carrier business globally. Moreover, the company is working tirelessly to meet customer demands.
Millions of satisfied customers acknowledge the quality service offered by this brand. However, FedEx comes with its fair share of disadvantages.
Advantages Of FedEx Shipping Service
- FedEx has a reliable tracking system. Its tracking has an accuracy of up to 30 minutes. Therefore, you can track your shipment’s progress from the system. With FedEx’s delivery manager option, you can adjust the delivery information of your package.
- FedEx delivers packages over the weekend too. To reduce the backlog at FedEx offices, the company delivers shipments even on Saturdays.
- The shipping fees on FedEx are negotiable. This option targets small businesses that ship significant volumes of products. Isn’t this an efficient way for your business to save some bucks?
- FedEx delivers packages faster. With its robust network of cargo planes and delivery vans, FedEx delivers products faster.
- FedEx routes provide merchants with a solid business structure. These routes save you the heavy lifting in R&D, capital needs, and other factors associated with starting a business.
- FedEx offers a reliable business model. FedEx has been in business for decades and operates profitably countrywide. Moreover, the business doesn’t rely on timing or luck hence appears lucrative to future magnates.
Cons Associated With FedEx Shipping
- Even though shipping costs are negotiable, FedEx typically has high shipping fees. Its premiums are unlike the competitive prices offered by UPS.
- FedEx has fewer outlets than most of its competitors. Therefore, some businesses may suffer inconveniences and deliveries delayed during peak times.
- FedEx routes require initial capital investment. Acquiring FedEx routes is at least $1 million, which is pretty expensive. Inherently, if you lack funding and aren’t eligible for loans, it becomes impossible to get a route.
- The FedEx cash flow isn’t always consistent. A consistent cash flow isn’t always a guarantee in FedEx, and profits may fluctuate seasonally. Your business may experience dry spells in some seasons that will hamper profitability.
- FedEx routes aren’t flexible. In addition to purchasing the routes expensively, merchants also need to adhere to FedEx’s strict rules. This lack of dynamism limits entrepreneurs as innovation, and it hampers experiments.
How To Make Your FedEx Route Profitable
FedEx has its own merits and demerits. However, this shouldn’t shake you off if you’re planning on making your route profitable. There are several steps to be followed to realize a successful FedEx route business.
Firstly, select the most appropriate route. For local business deliveries, the Pickup and Delivery routes are just enough. Being minor and inexpensive, P&D is easier to manage, and drivers don’t meet many requirements.
On the flip side, linehaul tends to cover more miles when shipping between FedEx hubs. Despite being expensive and difficult to manage, these routes tend to scoop immense profits.
Secondly, active management is vital for running a FedEx route successfully. Since the business isn’t entirely passive, making some decisions should be on the go.
Financial reports, resizing capital investments, and you should make business optimization decisions on the fly.
Albeit acquiring the FedEx route comes with high stakes, it is a viable option to bet on your management experience.
Perspectives of existing route owners and some research will wisely help you make critical business decisions.
Lastly, know when to cash in on your FedEx Route. If your business is taking a nosedive, it is advisable to sell your route. You could make substantial gains or prevent loss exacerbation.
FedEx transformed the transport and shipping industry into a global business. However, UPS, Amazon Prime, and DHL have created a blip competition with FedEx. We can only speculate how FedEx will fight for its market share.
FedEx tracking is an accurate way, up to half an hour, for customers to monitor their online shipments. However, the accuracy may vary depending on geographical locations and how employees scan those packages.
This multinational conglomerate acquired several businesses to complement its operations. Gelco, Flying Tiger, Kinko’s, and World Tariff are some acquisitions that provided FedEx with a competitive advantage.
With the introduction of SenseAware, FedEx customers can know the condition of their shipment. This technology allows customers to monitor their packages’ temperature, location, and condition.