Dive Brief:
- FedEx is investing in data and tools that help the delivery company anticipate disruptions, provide optimized route information and enable better last-mile experiences, according to executives on a Q1 2026 earnings call Thursday.
- Best Buy made FedEx its primary national parcel carrier, and the retailer will now provide real-time tracking data and order communication to improve its customer experience, according to Brie Carere, EVP and chief customer officer at FedEx.
- “By providing customers with more timely and accurate updates, the company also expects to reduce support calls, cancellations and reship costs,” Carere said during the call. “We are excited to partner with Best Buy to create a smarter, more reliable supply chain that further strengthens their customer trust.”
Dive Insight:
FedEx’s and Best Buy’s investments in last-mile transparency could help them keep pace with customer expectations around deliveries.
FedEx moves 17 million packages a day, producing 2 petabytes of data, according to Raj Subramaniam, president and CEO of FedEx. This data is fueling the company’s AI tools, which lets the company enhance predictability and power better last-mile experiences.
“Data and technology remain foundational to our business, but we are entering a new chapter in how we leverage them,” Subramaniam said.
Consumers want more information about their deliveries, with 29% seeking clarity on exact delivery times and 28% interested in real-time tracking with precise location information, according to a survey of 25,000 people released Thursday by VML.
About one-third of consumers say that easy tracking of orders is one of the top benefits of shopping on a mobile device.
National companies are investing in greater last-mile transparency. Dick’s Sporting Goods makes it a point to communicate with customers early in the journey to better manage expectations and protect the brand in cases where something goes wrong.
Gopuff made transparency a key element of its revamped website, which launched Thursday. Customers can see a live video feed of the company’s order fulfillment centers, as well as receive information about who is packing their order then follow along the entire delivery process with real-time packing updates.
