Dive Brief:
- FedEx has launched a new delivery option that offers an extra security layer for high-value and sensitive shipments, according to a Sept. 16 news release.
- The offering, called FedEx Authenticated Delivery, uses QR code authentication to ensure packages are only released to an authorized recipient and reduce the risk of fraud or theft, per the release. Upon delivery, a recipient at the destination address must provide the QR code to the FedEx driver for scanning and validation.
- "The service is particularly well-suited for shipments where added security is especially important, including luxury goods, electronics, healthcare, aerospace, collectibles, and other high-value items," the release said.
Dive Insight:
The launch of FedEx Authenticated Delivery marks another way the carrier is pushing to draw higher-value packages into its network to boost profitability. Package theft has been an ongoing challenge for shippers and delivery providers, and ensuring the security of a shipment is especially critical in sectors like healthcare where patient outcomes can be on the line.
“The future of delivery isn’t just moving packages quickly. It’s about building greater trust throughout the delivery process,” said Neil Gibson, FedEx SVP of global customer experience, in the release.
Authenticated Delivery is available with select eligible FedEx expedited services, covering certain residential and commercial shipments in the U.S. and Canada. The service costs $20 per package for FedEx First Overnight, Priority Overnight, Standard Overnight, 2Day, 2Day A.M. and Express Saver services, according to the company's service guide. For international package services — excluding FedEx International Ground shipments — the cost is $20 per shipment.
Authenticated Delivery shipments are not eligible for address corrections, hold at location or redirect to hold services, which helps maintain the package's security, per the release. However, recipients can place shipments on a temporary hold through a vacation hold request. Deliveries for Authenticated Delivery shipments may be reattempted up to three times, after which the package will be returned to the sender, according to FedEx's website.
Rival UPS has also bolstered its options for more secure package delivery in recent years. The company's DeliveryDefense tool weighs factors such as loss frequency and delivery attempts to predict the likelihood of a successful delivery at an address, with shippers able to reroute at-risk shipments to alternate dropoff locations.
