FedEx’s growing Supply Chain

by Maria Hartas, DCMME Graduate Assistant

Can supply chains directly meet end consumers? The answer is yes, and for companies like FedEx Office opening retail locations in Walmart stores, the company’s supply chain is turning into a customer-centric supply chain. FedEx recently opened the company’s 2,000th retail location in a Walmart in Chesapeake, Virginia, marking it the 150th such location of the 500 Walmart stores customers will be able to print and ship while shopping.

 

Why FedEx & Walmart?

Expanding FedEx storefronts in Walmart is a strategic move towards adopting a more customer-focused supply chain. For FedEx, offering the option to customers to ship and pick orders from a secure store location instead of an exposed porch or front door increases the sense of security and reliability of doing business with the company. In addition to consumer benefits, FedEx will increase its market presence through the Walmart network in more locations without incurring direct construction or development costs leveraging the existing store facilities. Walmart on the other hand, will benefit from increased traffic in stores; online shoppers could potentially switch from other e-commerce platforms that do not offer convenient pick-up locations and opt to couple online ordering with grocery shopping at a Walmart near them.

A robust, customer facing supply chain will continue to grow as more companies take a holistic approach in improving customer experiences, starting from raw materials to convenient store locations nearby.

How can a 3PL, like FedEx, enter new markets though its supply chain?

Why are companies adopting customer-centric supply chains?

Could FedEx and Walmart become more competitive by working together?

Sources:

https://www.supplychaindive.com/news/fedex-opens-2000th-retail-location-e-commerce/551928/

https://www.cnbc.com/2018/03/20/walmart-to-bring-fedex-shops-into-500-of-its-us-stores.html

 

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