What Is the Large Package Network?
FedEx Ground has recently announced that it will be investing in dedicated large package sorting/distribution centers around the country. Some of the dedicated facilities will be standalone while others will be segregated within an existing terminal.
The purpose of separating out these large packages is due to compatibility issues with the existing sort systems FedEx Ground uses. These packages typically cannot fit on the sort belts and require extra handling by both FedEx Ground employees and FedEx Ground contractors. As a result, these packages have essentially “clogged” up both trucks and the sort facility.
The second prong of this announcement is the launch of dedicated large package routes. These dedicated routes will allow contractors that service certain areas to better optimize these large packages by running bulk truck routes with lower stop counts/higher package counts.
Why Is FedEx Ground Announcing This?
One of FedEx Ground’s competitive advantages relative to UPS, USPS and Amazon is its ability to handle larger packages. As customers have been able to purchase increasingly large items online, large packages as % of total packages continues to climb at FedEx. This announcement recognizes the opportunity FedEx Ground has in this niche, wants to invest in the future growth while mitigating the effects these packages have on its entire network.
Black Iron Advisers Take
We believe this is a positive step taken as this shows FedEx Ground recognizing a growth opportunity, investing further in its competitive advantage all while mitigating operational challenges these larger packages can pose. For FedEx Ground contractors, this is yet another growth opportunity for their businesses to capture within their CSAs.
If you have any questions as it relates to the Large Package Network or have any other questions at it relates to FedEx Ground routes, we are here to help. Contact Us to begin the conversation