FedEx International Priority DirectDistribution (IPD) is a contractual service that caters to businesses needing to send multiple packages from a single location to various recipients within a single destination country. This service is designed to streamline the shipping process, making it more efficient and cost-effective.
FedEx International Priority DirectDistribution (IPD) is a contractual service designed for businesses that need to send multiple packages from one location to various recipients within a single destination country. It streamlines the shipping process, providing improved delivery times, reduced clearance fees, and lowered warehouse costs. This service is ideal for businesses looking to increase speed-to-market and expand into new markets with minimal risk.
FedEx IPD versus Regular FedEx International Priority Service
While both FedEx IPD and regular FedEx International Priority are designed to deliver packages quickly and reliably, they serve different purposes. FedEx International Priority is a faster shipping service that delivers packages in 1 to 3 business days, ideal for time-sensitive shipments. On the other hand, FedEx IPD focuses on bulk shipments to multiple addresses within a single destination, making it more suitable for businesses that need to distribute large quantities of goods to multiple recipients within a specific country or territory.
Ideal Users of FedEx IPD
The ideal users of FedEx IPD are businesses that require a cost-effective and streamlined way to move shipments straight from the point of manufacture to multiple customers or end users. This service is particularly beneficial for businesses looking to increase speed-to-market, shorten order-cycle time, and explore new markets without the financial risks and infrastructure requirements associated with traditional distribution methods.
Benefits of FedEx IPD
FedEx IPD offers several benefits for businesses. Some of the key advantages include improved delivery times, reduced clearance fees, lowered warehouse costs, increased speed-to-market, and the ability to expand into new markets with minimal risk.
FedEx IPD Process
The FedEx IPD process is straightforward. It begins with the consolidation of goods shipped as one electronically consolidated shipment. The shipment then clears customs with one Consolidated Commercial Invoice (CCI) using a single international Master Air Waybill (MAWB). Following customs clearance, FedEx de-consolidates the shipment and distributes packages to the final recipients.
FedEx IPD in Action
Real-life examples of businesses successfully using FedEx IPD include Fairchild Semiconductor, which used FedEx IPD to streamline its global supply chain, providing inventory visibility and real-time tracking.
Limitations of FedEx IPD
While FedEx IPD offers many benefits, there are some limitations and constraints. These include restrictions on the number of different commodities each shipment may contain, size and weight restrictions for individual pieces and the overall shipment, and availability in all countries.
Getting Started with FedEx IPD
To start using FedEx IPD, businesses need to establish a contract with FedEx. Following this, they need to consolidate shipments, prepare documentation for customs clearance, schedule pickup and delivery, and monitor shipment progress using FedEx’s tracking tools.
In conclusion, FedEx IPD is a valuable service for businesses looking to ship multiple packages from a single origin to multiple recipients in a destination country. Its benefits include improved delivery times, reduced clearance fees, lowered warehouse costs, increased speed-to-market, and the ability to expand into new markets with minimal risk.
Frequently Asked Questions
What type of goods can be shipped using FedEx IPD?
FedEx IPD is suitable for a wide range of commodities, but there are some restrictions. It’s best to check with FedEx directly for specifics related to your shipment.
Is FedEx IPD available worldwide?
FedEx IPD is available in many countries, but not all. Again, it’s recommended to check with FedEx for the most current information regarding service availability in your desired destination country.
Can a business track its FedEx IPD shipments?
Yes, businesses can monitor the progress of their shipments using FedEx’s tracking tools. This provides visibility and real-time tracking, ensuring businesses can keep their customers updated on the status of their orders.
Are there weight and size limitations for FedEx IPD shipments?
Yes, there are size and weight restrictions for individual pieces and the overall shipment when using FedEx IPD. Specific details should be confirmed with FedEx.
How does FedEx IPD reduce warehouse costs?
FedEx IPD reduces warehouse costs by consolidating shipments at the point of manufacture. This eliminates the need for additional storage and handling, thereby reducing warehouse costs.
