Do you have parcels stuck at the FedEx? What does it remind me of? The way the FedEx Smartpost was unable to deliver services on time! Have you ever experienced the same as me, especially when you see that USPS can deliver to their customers?
In this blog, I will address FedEx Smartpost’s services and their shortcomings. It is important to know the disadvantages along with the advantages must be addressed so that you learn how they have served customers and the way they have let them down.
Furthermore, the occasional issues with the tracking and reliability of it also influence the revenue profit. The parcels piled up, leading to significant concerns, especially regarding a zip code located within 48 continental states. So, do you relate to UPS mailing services when I talk about FedEx smartpost!
The Future Of Shipping: A Dive Into FedEx SmartPost!
Why was FedEx SmartPost shut down and or rebranded into another section of the institution? Even though there were some advantages, especially when they accessed all addresses served by the USPS! So, read What is FedEx SmartPost?
Yet, issues persisted, such as slow deliveries compared to other mail services! Even though the FedEx Smartpost was not charging any residential surcharges, the overall cost of the shipping parcels and packages increased to be noteworthy enough.
In the blog, I will discuss how the tracking they gave their customers was quite appropriate. Yet, it was one of the most lagging services provided in the U.S., one reason it was rebranded into the FedEx Ground Economy! Let’s delve into it to learn more…
About FedEx SmartPost!
The shipping service FedEx SmartPost has a wide range within which it uses the U.S. Postal Service and the ground shipping network of FedEx! It is a hybrid model that the FedEx SmartPost was using. However, they were doing something new.
It was the same service FedEx normally gave to shippers for shipping their parcels. There were, ofcourse, warehouses, transportation, vehicles, and SmartPost-specific sortation hubs of FedEx, that were being used in this network.
Finally, the last step in the parcel’s journey was to reach the customers’ doorsteps from the warehouses at the final processing. This was defined as an inefficient process, however, quite expensive! Want to know about what is Smartpost fedex? Keep reading!
A Cost-Effective Solution Or A Handicapped Service!
I am addressing the process as inefficient because the packages were being dropped one by one instead of a collection of boxes. The FedEx SmartPost seems to be a handicapped section of the U.S. postal services and FedEx instead of contributing to better mail management.
The drivers of the FedEx truck used to drop by one parcel at the customers’ doorsteps. It makes the process expensive and inefficient, especially with the management of the parcels. I am highlighting the process as inadequate because when delivering the packages, the truck passes the same houses daily!
Sorting the packages will help sort them based on location or time to make the process more efficient. However, no strategies could be implemented to make the institution work on better grounds. Fedex Smart post was a standalone system which ultimately did not work well!
The FedEx SmartPost was so focused on the destination across the U.S. that is located nearest that they could not support the USPS on their final leg of deliveries. Overall, this proves that the services catered by the FedEx SmartPost need to improve in quality.
FedEx Ground Economy Replaces FedEx SmartPost!
In the early months of 2021, FedEx SmartPost was rebranded as FedEx Ground Economy. Even the USPS last-mile delivery service was also scrapped, and there have been valid reasons for the same. Read along to know why the rebranding takes place!
It was more of an update, and it was in the works for a long time, but after the COVID-19 pandemic, they finally decided to implement it. Along with the world, the FedEx SmartPost also went into lockdown. Hence, it further impacted their revenue. Are you finding similarities to ISC New York operations?
The services offered became quite complicated, which led to their shutdown. The process needed more profitability, while the FedEx SmartPost became more of a standalone model that operated on its network, sorting hubs, and 26 warehouses. It was necessary for the rebranding because it was working on a loss!
The shippers who worked across the United States relied on SmartPost by FedEx for e-commerce and customers. Hence, it became quite popular with the shippers; therefore, there were some gaps in the market due to a lack of operation in its absence.
This led to the creation of an entire model, which is not a standalone approach; instead, it is more of an interactive model with USPS and the internal service of FedEx! Furthermore, there are other successful mailing services such as DHL!
Reasons For Replacement!
There were several reasons why the rebranding took place; one of the major reasons was utilizing the shipping networks to maintain a network effectively! Unfortunately, the organization was unable to do it.
The established shipping network failed miserably because the reality was that there were not enough contractors. It is also important to highlight that the Smartpost of FedEx could not manage the high influx of parcels. Thus, the services they catered to needed to be more.
However, the implemented changes, such as FedEx Ground Economy, have increased revenues by adding contractors. According to the reports, in a year, SmartPost’s average income is much less than the Ground Economy section of FedEx!
The operation’s health after the rebranding has improved significantly with its integration of rate modeling, peer benchmarking, simulations, and invoice audits. The pricing of the parcels has also undergone changes, which are more on the level of UPS and FedEx.
The fraud actions and issues related to the delivery of the parcels have reduced over the past few years, especially after the rebranding. Do remember that machine learning and Artificial Intelligence implementation have further impacted the services.
FedEx Scrapped SmartPost…
Now that we know all about FedEx SmartPost and how it was necessary to rebrand it into FedEx Ground Economy, I am sure you get an idea about the networking. Furthermore, it helps identify the issues that could have gone better than current changes.
Comment on what you think about the effectiveness of the services provided by the FedEx SmartPost, or were you dissatisfied with it?
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This was beautiful Admin. Thank you for your reflections.
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