Is the overnight envelope anti-green?

FedEx's environmental director responds to the idea that shipping is "wasteful" in a digital era.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Commentary by Mitch Jackson

What do you think of the government's efforts to keep Chrysler going?
  • It's doing what's appropriate
  • It should be working harder
  • It should do less and let Chrysler fold

(Fortune) -- At the recent Fortune Brainstorm: Green conference, the subject of the famous FedEx overnight envelope came up. One of my fellow panelists said he was surprised to still see those envelopes, implying that the contents could easily be transmitted electronically, and that somehow this service was environmentally "wasteful."

He made me realize how easy it is for people to make the wrong assumptions or hold on to outdated ones.

Mostly, his comment reminded me of how badly many people want binary answers to what are complex environmental questions. "Is it wasteful or isn't it?" My sound-bite answer is "It's absolutely not wasteful the way we do it." But the question deserves more than a sound-bite answer.

FedEx (FDX, Fortune 500) networks are set up to reduce environmental impacts of our customers' shipments in many ways. We offer customers scores of options that mix and match speed, cost and bulk, depending on their needs. So, if doesn't have to be there overnight, our customers can and do select lower-cost options.

My fellow panelist said people should just fax documents or send them by emailed PDF instead of shipping them overnight. Short answer: they already do and have for years. We anticipated the impact of that technology decades ago; it's a big reason we expanded our portfolio. Our overnight envelopes now amount to less than 10% of our daily pieces shipped (down from 17% ten years ago). The envelopes are a much smaller percentage of the total weight of all shipments through our planes and trucks.

We're even offering our own digital alternative, aimed at large or complex printed products: our FedEx Office Print Online service, from your desktop directly to a FedEx Office (formerly Kinko's) location in the place the print product is needed, skipping the plane trip altogether.

But customers still have compelling reasons something "absolutely, positively has to be there overnight," as our ads said long ago. Contracts requiring personal signatures. Test strips enroute to a laboratory. Highly sensitive materials people don't want digitized. Cherished personal items like photo albums or a family keepsake.

Those overnight envelopes still serve a lot of urgent needs today. And at the end of the day, customers make a price/value assessment when using this service; meaning, if the price of shipping is worth the value of the contents getting to a destination on time and in a reliable manner, they make the right choice.

Most importantly, that overnight envelope isn't riding an empty plane. Just as we created the overnight document delivery business, the shipping technologies FedEx pioneered and keeps improving have helped enable "just-in-time" manufacturing. So, those envelopes are sharing our planes and trucks with what we call "inventory in motion," a wide variety of high-value goods that never see warehouses because they can go directly from the plant to the buyer in our custodial care, saving the energy and emissions associated with warehousing goods.

We even encourage our customers to help us maximize the payload of our planes and trucks through a mechanism called "dimensional weight." If a shipment is light in weight but large in volume, we charge more to ship it than one that's packaged more compactly. (By the way, the overnight envelope is the most compact, and thus environmentally efficient, package in our portfolio.) Overall, the dimensional weight approach hits a sweet spot of sustainability because it increases the number of packages each vehicle or aircraft carries and thus reduces the emissions generated per shipped package.

By slimming down the bulk of their packages, shippers reduce their transportation costs and improve their own environmental performance by consuming fewer packaging materials. We're constantly working to increase the recycled and recyclable content in our packaging as well, including those envelopes.

On top of all that, we've tapped the latest algorithm technology to optimize our delivery routes, increasing system throughput, saving time, and reducing fuel use and emissions. And we're the leader in introducing hybrid and electric vans to further reduce emissions.

That's the non-sound-bite answer, but the message is the same. If it has to be there overnight, FedEx gets it there in an environmentally sound way.

Mitch Jackson is director of environmental affairs for FedEx Corp. To top of page

Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Sponsors
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.