FedEx’s Ryan Kelly On The Supply Chain and The Future Of Retail

As part of our series about the future of retail, I had the pleasure of interviewing Ryan Kelly.

As Vice President of E-Commerce and Alliance Marketing for FedEx Services, Ryan Kelly leads the enterprise’s vision and strategies for the e-commerce and small business markets. In his position, Mr. Kelly plays a vital role in contributing to the growth and development of the products, solutions, and experiences for those key markets as well as establishing strategic relationships within the broader ecosystem.

With more than 20 years in the financial and logistics sectors, he has extensive experience in leading strategy, sales, marketing, product management, research, and communications teams. He is known for infusing his passion for FedEx throughout each business venture and every customer and teammate relationship.

Mr. Kelly holds a Master of Business Administration degree from the University of Chicago and a bachelor’s degree in business administration from Loyola University New Orleans.

Mr. Kelly frequently presents on e-commerce, supply chain and logistics, and returns-related topics.

Thank you so much for joining us in this interview series! Before we dive in, our readers would love to learn a bit more about you. Can you tell us a story about what brought you to this specific career path?

One of my mentors shared with me a philosophy — don’t over plan your career or you’ll miss amazing opportunities because you can’t see how they fit into your plan.

I am a finance guy with a world-class, finance-centric education. I should still be an investment banker or in private equity or something like that, but I hit a point, that let’s just call, “the intersection of burn-out and plateauing.” I needed something different, so I left financial services to join a company I knew well, but I quickly helped sell that company (the banker in me). I joined the acquiror and then helped sell that company, too (still had some banker in me). That last acquiror was FedEx and the chance to work at a company of that global scale, with such an iconic brand, was something I couldn’t pass up. That was 7 years ago, and I am still having fun and continue to see amazing opportunity.

When I was deep in my financial services career, did I ever think this introverted, over-planner could be a marketeer at FedEx? Nope, it didn’t fit. However, I’m beyond grateful to be where I am.

Can you share the most interesting story that happened to you since you started your career?

Well, I haven’t really interviewed for a job since I graduated college. Opportunity and the “next” thing have presented themselves to me through my career in such a way that I haven’t really formally interviewed in a really long time.

However, I fundamentally view that as misleading. The reality is that we interview every single day. I view every experience, and every interaction as an interview. To take that one step further, it isn’t just me informally “interviewing” for my next role, I have the privilege and responsibility to work with about 70 people that show up on an org chart as being on my team. They are interviewing me every single day, and deciding whether they want to remain on our team, or go somewhere else. Let’s be honest, it’s a frothy job market right now and we all have choices, so I want to make sure that the people on my team make the choice each day to continue doing great things together.

None of us is able to achieve success without some help along the way. Is there a particular person to whom you are grateful, who helped get you to where you are? Can you share a story?

Absolutely. Like probably a lot of people out there, I’ve doubted myself and where I’d be professionally. Life was “fine,” but not great. I could see and feel myself vectoring towards mediocrity. And then I met Leslee. She is a world-class caliber executive assistant who was working for the CEO of the company I was working for. At first, it was subtle. A suggestion here, an order there, but over time I soon realized something. Leslee believed in me and my abilities more than I did myself. What did she see? I don’t know, but I trusted her, and her faith in me gave me a confidence I never realized I could have. My career trajectory is entirely different because of her.

I think we often assume mentors “outrank” us organizationally, but we are surrounded by greatness and opportunity if our minds are open to it.

How have you used your success to bring goodness to the world?

Goodness to the world, aye? That’s all? Ok, this might be a little underwhelming, but I think there are two pieces to this. First, I’d say it starts with yourself. I think it’s really hard to bring goodness to others if you are not in the right place mentally, emotionally, and spiritually. My “success” has made it easier for me to work on me, and to view self-care as an investment, which affords me the opportunity and the mandate to think bigger than myself. Second, and this one will be somewhat trite, is to aspire to be a great husband and the best damn girl dad you have ever met. Success allows me the opportunity to be present, whether it is make-believe (thankfully) make-up time, debating our favorite Disney princess (it’s Tiana), or learning how to spit (toothpaste). I pray that the time I spend with her helps embed love, kindness, patience, and generosity that grows throughout her life.

Ok super. Now let’s jump to the main questions of our interview. The Pandemic has changed many aspects of all of our lives. One of them is the fact that so many of us have gotten used to shopping almost exclusively online. Can you share a few examples of different ideas that large retail outlets are implementing to adapt to the new realities created by the Pandemic?

In 2022, U.S. holiday retail e-commerce sales are expected to surpass $1.2 trillion. Companies are continuing to reflect on the purchasing trends of the past two years to discover how they can create a more seamless online shopping experience for their clients. Consumers want to choose how they shop, when they shop and where they shop. If you don’t give them that choice they will quickly move on. Throughout the pandemic, businesses that developed an omni-channel operation have been more flexible, moving sales online and using physical locations for fulfillment. The same is true for brand manufacturers, as those that sold through retailers and their own online storefront were better equipped to weather the disruption to their normal business model. This is a must for any business as consumers need to find your product in a way that’s most convenient for them.

In addition, consumers want more control over their deliveries, and delivery notifications have become key. Maybe it’s just me, but don’t you get a feeling when you get a package notification that is a mixture of anticipation and excitement? It’s probably one of those social media inspired dopamine type things, but the stats don’t lie. FedEx receives more than 400 million package tracking requests a day and it’s not just for the utility of the information. Aside from tracking, FedEx also gives its customers more control over the delivery experience by letting them provide special directions to the courier, or even rerouting the package to an alternative address with FedEx Delivery Manager.

Returns are also up because of the spike in online sales, which means retailers must have a flexible returns policy as well as strategies in place to ensure returns are cost effective, sustainable, and deliver a strong customer experience.

The supply chain crisis is another outgrowth of the pandemic. Can you share a few examples of what retailers are doing to pivot because of the bottlenecks caused by the supply chain crisis?

I’d say the average person didn’t think much about the supply chain and its impact on their daily life until things like paper towel shortages started, or your kids wanted something for Christmas that wasn’t in stock. Supply chains throughout the world have been disrupted, which has led to shortages and scarcity pricing at times. In conversations with retailers ahead of this past holiday season, I wasn’t surprised that several were pulling back from traditional promotional activities as inventories were light. They simply realized full retail prices were possible.

We saw retailers and brands not just talking about supply chain resiliency, but actually making moves and investments that had only previously been opportunistic or aspirational. Selling on multiple channels and fulfilling orders from several locations, including from stores, was becoming a nearly daily conversation. Finally, we saw brands getting control of their data, analyzing profitability by channel, and making purposeful, financial prioritization decisions because all sales are not created equal.

How do you think we should reimagine our supply chain to prevent this from happening again in the future?

Supply chains are a connected global ecosystem. When several areas are impacted, it disrupts the entire ecosystem. Moving forward, I can see supply chains becoming more diversified, not reliant on one or two specific supply regions. Oftentimes, I feel like people assume “supply chain” is just about the movement of goods. But the goods themselves, the inventory, along with demand for those goods are critical components in orchestrating the optimal supply chain that have to be incorporated as a brand strives to ultimately deliver. I also believe automation will become more meaningful and important to modernize the supply chain infrastructure.

Sustainable supply chains will become more important to retailers, brands, and consumers as well. Consumers are becoming more interested in where items are sourced, whether that source is sustainable, and they also want to know if the supply chain path minimizes the carbon footprint. I believe business decisions moving forward will factor in sustainability.

In your opinion, will retail stores or malls continue to exist? How would you articulate the role of physical retail spaces at a time when online commerce platforms like Amazon Prime or Instacart can deliver the same day or the next day?

Guess what model can deliver quickest? Picking up a product off a shelf in your store. The reality is, the vast majority of retail still happens in a physical store and will for the foreseeable future. Yes, e-commerce has been increasing as a percentage of total retail sales as the growth is faster, but it is still less than 20% of total retail sales. I believe there are some things that are easier to just buy online, but I also love retailers that maximize the value of their stores.

In addition, you are also seeing retailers use stores more strategically and tactically. More are rolling out buy-online-pickup-in-store capabilities and adding curbside pickup. They’re also using storefronts to fulfill e-commerce orders to leverage localized inventory in order to achieve amazing click-to-door times with lower shipping costs.

Amazon is going to exert pressure on all of retail for the foreseeable future. New Direct-To-Consumer companies based in China are emerging that offer prices that are much cheaper than US and European brands. What would you advise to retail companies and e-commerce companies, for them to be successful in the face of such strong competition?

First of all, both retailers and brand manufacturers must sell through multiple channels in order for consumers to quickly and easily find their desired items at the best value, and consumer experience must be consistent and seamless. Also, selling directly to consumers through an owned channel allows companies to capture and analyze data more quickly about what the shopper expects from both a product and experience perspective. Fulfilling through multiple channels, when applicable, is smart.

Stay true to your brand and your products. Customers have more choices these days and we are seeing a shift — consumers are shopping more with smaller online retailers. With more consumers shopping online, the audience is growing, and the opportunities exist to capture shoppers who can be loyal, repeat customers. Another way to compete is to be authentic and provide a shopping experience that builds interest and loyalty. Providing interesting content (videos, information, etc.) can attract customers. Remember, big marketplaces can make you feel manipulated and can be overwhelming. For instance, go to a large marketplace and search for “doggy poop bags.” First off, do you really need “over 1,000 results,” and are the first ones listed that are house brands or sponsored really the best ones for you? People want to shop with businesses that connect with them, offer sustainable options, and are genuine.

Based on your experience and success, what are the five most important things one should know in order to create a fantastic retail experience that keeps bringing customers back for more?

Authenticity

Personalization

Simplicity

Content (Engagement)

Value

Thank you for all of that. We are nearly done. Here is our final ‘meaty’ question. You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

I’ve got two for you.

First, do you really need to pay for free shipping? Free shipping is often available with a relatively small minimum order. And do you need it extra fast? When was the last time you really needed that thing in a day or two? How often do you get a package and not even open it for a few days? Think about the impact on the environment over the obsession for speed, and how two little things can have a profound impact — opt for slower shipping, and consolidate orders into larger, less frequent orders. Sure, it hurts somebody’s flywheel, but what do you really need, when, and at what cost?

Second, we do not prepare our youth for the financial realities of adulthood. I believe personal finance should be a critical component of our educational system as I see so many people that do not understand budgeting, affordability, debt, investing, retirement, and taxes. Perhaps the worst example is the staggering student loan burden that so many people have for degrees that have essentially no logical return on the investment. As long as the cost of higher education is what it is, then we need to have honest conversations about the costs relative to earnings power. Could that have an impact on less financially marketable degrees? Absolutely. But confusing young people with unrealistic career expectations is just not acceptable. Furthermore, I believe there are more careers than people would like to acknowledge that don’t actually require a college education. We need to challenge the status quo on minimum qualifications while also being more positive about the value of trade schools.

How can our readers further follow your work?

All of the latest FedEx news and information can be found at newsroom.fedex.com. You can also follow me on LinkedIn: https://www.linkedin.com/in/ryanpatrickkelly/

This was very inspiring. Thank you so much for joining us!