FedEx Small Parcel Optimization Report
Overview Snapshot
10/1/2025 – 10/8/2025
Spend Breakdown
| Service Type | Shipments | Total Spend |
|---|---|---|
| Ground Commercial | 2,000 | $300,000 |
| Home Delivery | 500 | $100,000 |
| 2Day | 1,250 | $30,000 |
| Express Saver | 320 | $6,000 |
Services Used
| Services Currently Used (Parcel Surges) | Potential Spend | Disc. Profit |
|---|---|---|
| Ground Commercial | 300,000 | High |
| Home Delivery | 100,000 | 10% |
| 2Day | 30,000 | 8% |
| Express Saver | 60,000 | Low |
| Services Not In Use | Negotiation Note |
|---|---|
| Standard Overnight | Lorem ipsum dolor sit amet |
| International | Lorem ipsum dolor sit amet |
| Same Day | Lorem ipsum dolor sit amet |
DIM-Weighted Shipments
| Service | # of DIM Shipments | % of Total |
|---|---|---|
| Ground | 300 | 20% |
| 2Day | 200 | 8% |
Lane Density Heatmap
Cost per Pound Analysis
Surcharge Breakdown
Optimization Opportunities
Service Mix Optimization
Shifting select Express services (5…8) to Ground could reduce total spend by 9%.
Surcharge Mitigation
Fuel and Residential surcharges represent 68% of total accessorials — both can be trimmed through account optimization.
DIM Reduction
1,485 packages billed at DIM weight — adjusting packaging could yield $15K–$30K in annual savings.
Estimated Optimization Potential
Key Insights
Average parcel cost per pound can drop from $8.00/lb to $7.75/lb with optimization.
Largest leverage points: Express service shift to Ground for zones 6–9, and reduced DIM
exposure.
Preliminary analysis indicates: 15–28% total savings potential, translating to an average reduction from $8.09/lb to $7.89/lb through service optimization, DIM management