UPS and FedEx have both announced new network and eCommerce developments.
As two of the world’s leading integrators, UPS and FedEx are continuously developing new solutions to offer a complete portfolio to customers above and beyond that of competitors. However, it’s getting harder for them to present their transport solutions as unique-selling-propositions – especially since they appear to be following similar development strategies.
Last week was a network development week for both firms. UPS announced the purchase of Mail Boxes Etc, a franchisor of independently owned communication and shipping centers worldwide, with which UPS already jointly offers solutions for small businesses and for eRetail purchases. At the same time, FedEx installed its first drop box at a US Postal Service branch. Following an agreement in January, FedEx has the right to place self-service drop boxes in every US Postal Service location; it will install some 10,000 drop boxes in the US during 2001-2002. The service should ease customers’ access to FedEx’s services for parcel deliveries and returns.
This week, the focus has shifted from network development to eCommerce. FedEx customers will now be able to track their shipments via web-enabled phones, two-way pagers and personal digital assistants (PDAs). UPS, meanwhile, has added UPS Signature Tracking, allowing approved customers access to tracking data, and UPS Shipping, allowing larger customers’ employees to create shipping labels from their computers. Most notably, UPS is offering an XML version of its UPS Online Tools to ease customers’ integration of these applications into their systems.
UPS and FedEx’s ongoing race to develop the most complete delivery solution, coupled with the resources to develop multiple projects simultaneously, inevitably makes their strategies look similar. But it’s important to remember that although new services can be copied by the competition, reputations cannot. UPS and FedEx both have extremely strong reputations in global and express solutions. They must maintain and build on the goodwill element by ensuring that quality control and service are optimal. While this aspect may not necessarily warrant the attention of the press, it is at the core of the companies’ long-term success and leadership.
