FedEx, OfficeMax sign multi-year deal for shipping services

MEMPHIS—FedEx and OfficeMax announced earlier today they have inked a multi-year agreement in which more than 900 OfficeMax locations will offer domestic FedEx Express and FedEx Ground services beginning September 30.

 

Officials at FedEx and OfficeMax said that earlier this month some of these services were offered at OfficeMax locations in Chicago and Memphis, with more rollow-outs scheduled throughout the rest of the summer.

 

Carla Boyd, FedEx spokesperson, told LM that there were multiple reasons for expanding the relationship between FedEx and OfficeMax, which goes back several years.

 

“OfficeMax is a leader in both business-to-business office products solutions and retail office products,” said Boyd. “The availability of reliable and cost-effective shipping solutions is logical and important part of the service offering.  For FedEx, the OfficeMax locations further enhance the FedEx Retail Network through the addition of more than 900 locations.  FedEx has had a relationship with OfficeMax for several years, having FedEx Express Drop Boxes at approximately 500 OfficeMax locations.  Shippers need more options and more convenient access.  The alignment between FedEx and OfficeMax will deliver both.”

 

FedEx services that will be offered at these OfficeMax locations include access to domestic FedEx Express and FedEx Ground shipping at OfficeMax locations, said Boyd.

 

And she added that customers with or without a FedEx account number can ship at OfficeMax.  The current plan is to offer domestic express delivery backed by a money-back guarantee, as well as domestic, economical ground delivery in 1-5 business days, also backed by a money-back guarantee, she said. Along with the 900+ OfficeMax locations that will take effect by the end of September, FedEx officials said these additions will compliment the existing 52,000+ locations in the FedEx retail network, which includes more than 1,800 FedEx Office locations, 6,000 FedEx Authorized ShipCenters, 725 FedEx World Service Centers and more than 44,000 FedEx Drop Boxes.

 

An industry source told LM that Office Max had a very lucrative parcel shipping program with Airborne Express which then became a program with DHL after DHL purchased Airborne in August of 2003.“DHL announced it was exiting the U.S. domestic express business on November 11 2008, which then left Office Max having to scramble to find a new dancing partner,” said the source. “[And] UPS had a pre existing relationship with Office Depot. I suspect then that Office Max did not have many alternatives to choose from when it comes to parcel shipping companies, and I am sure they did not get a ‘buy’ price from their new carrier anywhere close to the rate the enjoyed from DHL. The days of those margins are long gone.”

 

 

(Source: Logistics Managemnt)