Consultant’s Insight: FedEx invests in Floship to expand cross-border e-commerce capabilities

As it works to reignite its international services, FedEx is rounding out its cross-border e-commerce capabilities through a partnership with Floship , a circular supply chain e-commerce solutions provider. Through an investment by FedEx Innovation Lab , the partnership will “create an end-to-end digitalized fulfillment and return solution, enhancing operational efficiency through optimal inventory management and best-in-class delivery using FedEx services,” according to the Tuesday announcement. [caption id="attachment_76185" align="alignright" width="298"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo Next columnist[/caption] Before the investment with Floship, FedEx used Bongo International in 2014, P2P Mailing in 2018 and ShopRunner in 2020 to expand its domestic and cross-border e-commerce logistics capabilities. Floship is among several firms offering cross-border fulfillment options such as inventory management, order fulfillment, shipping and returns on a single platform. Focusing on e-commerce firms, Floship allows customers to split inventories across its warehouse network, which has locations in Hong Kong, China, the United States, Germany, Lithuania and the United Kingdom. “FedEx continues to actively seek out strategic collaborations like this to help evolve our operations and product offerings to meet the needs of the modern supply chain,” said Kami Viswanathan , senior vice president of Middle East, Indian subcontinent and Africa operations at FedEx Express . “Our approach allows mutual benefits to be gained through partnership as we seek to transform the global logistics industry.” FedEx launched FedEx Innovation Lab in May to make early-stage startup investments and form partnerships to help expand digital capabilities globally. Floship is its second investment; Mad Street Den , a computer vision and artificial intelligence company, was the first investment. Mad Street Den’s AI platform enables marketing, product and technology teams to improve and optimize efficiencies. Investments in such companies typically come when the express market faces volume declines due to uncertainty in the global economy and retailers’ more cautious approach to inventory replenishment. FedEx’s average daily volumes for international export packages declined 8.5% year over year between June 1, 2022, and Feb. 28, 2023. To increase volumes, it reintroduced in May its lower cost deferred service, International Economy, which was canceled during the pandemic. It is also tapping into such organizations as True Corp. , a telecommunications company in Thailand, to provide cross-border e-commerce logistics services for local businesses, small- and medium-sized enterprises, and individual shippers, and to assist Thai customers in tapping overseas export markets. In March, FedEx launched its FedEx International Economy services in Saudi Arabia, including cross-border, customs-cleared, door-to-door services with a day-definite delivery.

Consultant’s Insight: FedEx invests in Floship to expand cross-border e-commerce capabilities

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