It's been nearly three years since FedEx announced its plan for Network 2.0. At its inception, Network 2.0 would cost $2 billion to implement; however, within five years, it is anticipated to add $2 billion to FedEx's annual operating income. We're more than halfway to the 5-year mark. So, how's it going? Today, we'll take a look at what's been accomplished so far, what to expect in the coming two years, and how to protect your bottom line as FedEx ramps up its plan to close or consolidate facilities.

What's Happened Recently in the Network 2.0 Rollout?

In the June 24 Q4 2025 Earnings Call, Rajesh Subramaniam, President, CEO & Director, gave an update on the status of Network 2.0, saying, "As at the end of FY '25, we have closed 100 stations and integrated 290 stations under the Network 2.0 model. And we expect to, by the end of this program, expect to remove roughly 30% of our surface facilities."

FedEx has made major progress this year, including:

●       Full optimization of the Canadian market
●       Optimization of 45 US stations in Q4
●       Network 2.0 implementation on approximately 30 stations in 11 markets on June 1
●       Further optimization of 33 stations in 9 markets at the end of June

Subramaniam sums up the carrier's progress, saying, "we exit June with roughly 2.5 million average daily volume flowing through Network 2.0 optimized stations."

What's Next for Network 2.0?

According to FedEx's website, customers in the US and Canada will experience a new pricing and rating structure for parcel pickups beginning August 18, 2025. At that time, FedEx will charge regularly scheduled (Canada and US) and automated pickups (US) on a weekly basis, regardless of the service type. Customers using on-call parcel pickups will be charged on a per-stop basis (instead of per parcel). And for many customers, separating packages will become a thing of the past.

These changes are a response to customers' requests for a more seamless experience, while offering consistency, simplicity, and the ability to scale by supplementing regular pickups with on-call pickups.

Can I Expect the Same Quality?

John W. Dietrich, Executive VP & CFO of FedEx, says the company's goal is to "not only maintain but enhance our service." And he says they're on track: "We're seeing good progress on both the reliability side as well as the financial side for those locations we have transitioned."

The FedEx website states that customers won't experience service disruptions, but what happens if the closure of 100 stations and the increased flow through Network 2.0 stations result in delays? ShipRx parcel audits are a must-have for every business that relies on FedEx or UPS for parcel delivery.

Our proprietary software automatically performs more than 40 checks on every parcel shipped, and seamlessly requests refunds or credits for service failures. Sign up for a free Savings Analysis and get started with ShipRx parcel audits to see savings as early as your next invoice.