Name: FedEx Has Gotten a Few Upgrades to Take On E-Commerce
Uploaded: 2017-10-25
Duration: 3 min 20 s
Description: We peeked into FedEx Ground hub in New Jersey.

[ MUSIC ] The most important thing is to make sure that the culture of the organization understands that you have to change constantly. [ MUSIC ] Innovation drives much of our success. So when you look around the building you'll see Really advanced technology that may not be well known to an average consumer but it allows us to rapidly sort high volumes of packages. Our packages in our automated stations and operations get handled twice. They get handled off the unload, they get handled on the load side. Most of our competition doesn't have the level of automation And robotics that we have within our operations. That's why we have an advantage over the competition, somewhere in the neighbourhood of 25 or 27 percent. [ MUSIC ] [ INAUDIBLE ] as long as the camera scrolls, there's a rise in the demand for residential deliveries. There are challenges for that, so there's an increased number of stops So we have to ensure that we have the right vehicles to make all of those deliveries and on the right schedules. And then there's also just the convenience that consumers are looking for. We have FedEx Delivery Manager which allows consumers to redirect packages to more convenient pickups just with a use of a mobile device once the package is already on route. It's not necessarily harder to do residential deliveries, there's just other considerations. There's just neighborhood considerations, clearly safety. The other part of it is, as e- commerce grows, the types of products and the profile of the packages is changing. Everybody wants to have a package delivered to their house, whether it's a small package, a pillow, or a trampoline, we've adjusted our operations to handle that. We've added to our tugger system, we've increased the size of our conveyor belts. We also our building locations that advanced technology that will move Non- conveyable through the sortation system. It is a harder package to handle. There's no doubt about it. There's more cost to it, but we're building and extending and growing our operations to handle loose packages. Amazon is a customer of ours and really when we talk about Amazon and their relationship with FedEx, there has been a lot of rhetoric and discussion and I think misunderstanding Amazon is a retailer, we're a transportation company but because both units deliver packages there's a misconception on the part of the outside world about that. Amazon doesn't deliver majority of their packages at all, the majority are delivered by the postal service. Then the UPS and we deliver some of Amazon packages. And unless they decide to go into the transportation business, per se, and compete them in the transportation sector, I don't think that the potential faceoff between Amazon and FedEx is quite the thing thing that the popular press thinks it is .>> Before investors, I think you need to look at the global portfolio, the capabilities, the potential for growth. We have a portfolio that is performing very well and we've added to it with FedEx supply chain and FedEx across borders. So we're building out capabilities on a global scale. That are very well matched for the international growth, and the growing economy, the reshaping economy that we're moving towards. So we are very well positioned that way. [ MUSIC ]

We peeked into FedEx Ground hub in New Jersey.