This article explains the Actionable Insights recommending the service level optimization of Fedex Ground to Home Delivery and the corresponding Ground Commercial Residential Charge.
The Ground Commercial service (FedEx Ground) is used for a package that is shipped to a business address. Ground Residential service (FedEx Home delivery) is used for a package that is shipped to a residence or home. Commonly it is more costly to use Residential delivery as the transportation cost in searching and delivery for a home address can be higher and because one residential address typically corresponds to only one recipient, the cost is higher for the carrier versus a business address that may have multiple recipients, which is more labor-saving.
In some cases, a shipper may have tagged their package as Commercial (FedEx Ground) even though it is going to a Residential address. When those scenarios happen, the carrier will charge a Commercial Residential charge, instead of a Residential charge, which creates a higher surcharge cost. Ground Commercial Residential Charge is a way for carriers to penalize or encourage shippers to correctly use service levels. Our Platform Actionable Insights mentions this under Service Level Optimization, defining it as FedEx Ground to Home Delivery. Our Platform calls this out to identify the dollar impact of utilizing the incorrect service level.
