First announced in April 2023, FedEx said the consolidation would "create even greater flexibility, efficiency, and intelligence to unlock value for customers, team members, and stockholders." FedEx phased the implementation over the past year but set June 1 as the target date for unity. We'll tell you what we know about the consolidation and what FedEx's new structure means for your business.

What's the latest with Network 2.0?

FedEx CEO Raj Subramaniam recently shared that, FedEx has already rolled out Network 2.0 in more than 50 locations, with many more to follow this calendar year. This consolidation will allow the carrier to reduce redundancies, costs, and decision-making time while increasing density.

FedEx Freight, the country's largest less-than-truckload carrier, still operates as a standalone entity but will assist Network 2.0 when needed. At the BofA Securities 31st Annual Transportation, Airlines, and Industrials Conference, CFO John Dietrich said, "We are just now starting to tap the ability of Freight to participate in our One FedEx in terms of how it can help Ground and Express and vice versa."

Why now?

At Bernstein's 40th Annual Strategic Decisions Conference on May 29, Subramaniam shared the impetus for change. He told the audience that a "little less than 10 years ago, roughly 75% of the stocks, or packages stocks were businesses." All that's changed. Now, he says, "a vast majority of growth in the parcel market is now driven by e-commerce," changing the dynamic from a business-focused delivery model to one where "about 75% of our stops again, our packages stops are residential." By consolidating the networks, FedEx can avoid the issue of duplicate stops at a single home by Ground and Express in one day.

The consolidation is part of the carrier's plan to save $2 billion in FY 2027. Since their FY 2025 began this month, the company has a lot riding on this new strategy.

What does Network 2.0 mean for you?

Network 2.0 is part of FedEx's DRIVE initiative, which Subramaniam defines as the program under which all "revenue growth initiatives, structural cost reductions and network transformation efforts are managed." Focusing on efficiencies and density is one part of the solution that benefits you as the customer, too. Moving items faster and at a lower cost seems like a win-win for everyone.

However, we know that transitional times are often fraught with errors. Don't let FedEx's learning curve affect your profit curve. ShipRx's parcel audits automatically check for accurate pricing and surcharges, verify on-time delivery, and identify inefficiencies. When our audits discover an error, we'll automatically request refunds on your behalf within the timeframe required by the carrier.

It's free to get started, so there's nothing to lose and refunds to gain. Contact us for a savings analysis and discover how ShipRx can help you see refunds as early as your next bill.