FedEx is using data and AI tools to enhance last-mile delivery, providing real-time updates, optimised routes, and better predictability, helping reduce support calls, cancellations, and reship costs.
FedEx is investing in data and tools to help the delivery company anticipate disruptions, provide optimised route information, and enable better last-mile experiences.
Best Buy recently made FedEx its primary national parcel carrier. The retailer will now provide real-time tracking data and order communication to improve customer experience.
“By providing customers with more timely and accurate updates, the company also expected to reduce support calls, cancellations, and reship costs,” Brie Carere, Vice President and Chief Customer Officer at FedEx.
“We were excited to partner with Best Buy to create a smarter, more reliable supply chain that further strengthened their customer trust.”
FedEx moves 17 million packages a day, producing 2 petabytes of data, according to Raj Subramaniam, President and CEO of FedEx. This data fuels the company’s AI tools, enhancing predictability and powering better last-mile experiences.
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“Data and technology remained foundational to our business, but we were entering a new chapter in how we leveraged them,” said Subramaniam.
Consumers are increasingly seeking more information about their deliveries, with 29% wanting clarity on exact delivery times and 28% interested in real-time tracking with precise location information, according to a survey of 25,000 people by VML.
About one-third of consumers said easy tracking of orders was one of the top benefits of shopping on a mobile device.
National companies are also investing in greater last-mile transparency. Dick’s Sporting Goods prioritised early communication with customers to better manage expectations and protect the brand in cases where issues arose.
Moreover, Gopuff made transparency a key element of its revamped website. Customers can view a live video feed of the company’s order fulfilment centres, see who is packing their order, and follow the entire delivery process with real-time packing updates.
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