FedEx Express Modifies Distribution Model in Mexico

In Mexico, FedEx has established 7 operational stations in the last 2 years, bringing the total to 90 in an equal number of cities across the country.

FedEx seeks to strengthen its distribution with digital channels and last-mile warehouses. Photo: Canva.

08/24/2022

FedEx Express is transitioning to a faster operational and distribution scheme in response to the fierce competition that has emerged in the last-mile market, particularly for the delivery of products purchased through various digital channels.

In Mexico, the company has installed 7 operational stations in the last 2 years, reaching a total of 90 in an equal number of cities across the national territory. In 45 of these cities, they have implemented their strategy called "Forward Stock Locations" (FSL), which involves warehouses where they consolidate inventory from their clients and, based on predictive consumption models, anticipate high demand and continuous movement.

The executive explained that, in addition to this strategy, the company also has a proportional fleet of motorcycle riders who can make deliveries at the moment a client requests a product (within a timeframe of 30 minutes to an hour and a half, depending on the distance).

"Our intention is to maintain a similar pace of operational station openings over the next 2 years. Additionally, we are opening shipping centers. Currently, we have 450 owned shipping centers, and in the coming months, we will be opening 50 more centers, which is roughly 3 per month.

We also have strategically located shipping centers in the country that have these customer inventory warehouses (FSL), allowing us to make last-mile deliveries as close as possible to the consumer," said Torres. According to the Online Sales Study 2022 by the Mexican Online Sales Association (AMVO), e-commerce in Mexico reached a value of 401 billion pesos in 2021, a 27% increase compared to 2020, representing 11.3% of the country's retail sector.

These figures place Mexico in the top 5 countries with the highest e-commerce growth for the third consecutive year, alongside important markets such as India, Brazil, Russia, and Argentina.

Read the full article in Spanish

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