FedEx combines Ground and Express

FedEx Combines Ground and Express. What does that mean for healthcare?

FedEx Is Consolidating Services

“FedEx is consolidating its different operating companies into one organization,” reads the opening line of a recent article on supplychaindive.com.

This consolidation, expected to be completed in June 2024, will combine FedEx Express, Ground, Services, and other operating companies into one Federal Express Corporation, complete with a fully integrated air-ground network.

Geared toward high-margin, time-sensitive shipments, the move is expected to make the company “leaner, more agile, and better positioned to execute on our mission to help customers compete,” FedEx President and CEO Raj Subramaniam said during a recent investor presentation. By fully integrating its air and ground networks, FedEx will save nearly $6 billion by fiscal year 2027 by gaining increased operational efficiency. But what does that mean for the customer?

According to a press release issued on April 5, 2023, these greater efficiencies will “enhance the company’s ability to meet the evolving needs of customers and ultimately build a stronger, more profitable enterprise.” Their goal is to improve the efficiency with which FedEx picks up, transports, and delivers packages in the U.S. and Canada.

According to Subramanian, FedEx is building a simplified experience for customers, who are at the center of everything the company does, so that customers can better adapt to the market. Specifically, he says, the consolidation “will allow us to provide customers with even greater value, offering the most advanced data-driven insights to help them make smarter decisions for their business.”

You can rest assured that VPL will be following the consolidation very closely to ensure that our carrier-agnostic freight management program continues to help health systems and hospitals make the best choices for their shipping needs. Our transparency and visibility will enable healthcare supply chain leaders to see exactly what they’re getting with the new Federal Express Corporation and how they’re stacking up against the competition. And, our carrier flexibility will enable them to make changes should the need arise. 

To learn more about how VPL can help you navigate your inbound and outbound freight management more easily, visit us at www.getvpl.com. Additionally, be sure to check in with our blog to learn more about FedEx combining Ground and Express as the date gets closer to “go live.”