FedEx has boosted its capacity and operational innovation by expanding FedEx Ground’s US operations to six days per week. The move is in response to the growing e-commerce demand and record influx of volume expected this holiday season and beyond.
Raj Subramaniam, executive vice president, chief marketing and communications officer, FedEx, said, “FedEx anticipated early on that the growth of e-commerce would significantly increase demand throughout our network, and we underwent a transformation by opening new facilities and investing in highly advanced technology and innovations that have resulted in the most automated network in the industry, delivering the speed and reliability our customers value highly.
“These significant facility and automation investments have been taking place for many years, but are now largely complete. This expanded capacity and increased efficiency will create margin and profitability benefits at the same time that FedEx Ground capital investment will be decreasing.”
The rise in demand and volume at FedEx has been consistent for more than 10 years. The record volume day in the history of FedEx 10 years ago was 12 million shipments. Today, FedEx handles more than 14 million shipments on an average day.
FedEx anticipates a record amount of volume through its network again this year. In order to deliver exceptional service during this busy time, FedEx will increase hours for some existing employees and hire for approximately 55,000 positions during the holiday season.
FedEx Ground will once again run six- and seven-day operations through the holiday season, and will continue six-day operations throughout its US network year-round.
“The rise in demand for e-commerce goes beyond peak. It’s a year-round phenomenon and we are ready to meet that demand,” said Subramaniam.
“FedEx Ground has operated six- and seven-day operations during the holidays for several years as e-commerce has grown, and thanks to strategic investments in our network, we are now well-positioned to operate six days a week in the USA all year to best serve the rapidly growing demand.”