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The Looming Collapse of FedEx – Dematerialization 2

Thursday October 29, 2009 || by Tim!

Part of a series: Dematerialization

A little while ago, I was sitting on a bus, considering the invisible infrastructure of cyborgs (like you do). Meaning, all of the things that needs to be happening behind the scenes or have happened in the past to allow the independence of the self-sufficient super-being.

U.S. Troops Surrounded by Holiday Mail During WWII
Creative Commons License photo credit: Smithsonian Institution

While this was happening, we got stuck in traffic behind a delivery truck. We were surrounded by them, in fact, and it occurred to me that I was on one (Greyhound offers a courier service). I started thinking about the insane infrastructure required to have something like FedEx. The need to rapidly get something from one place to another. The network of planes, warehouses, barcodes, computers, scanners, trucks, garages, boxes, and people all bent to the service of moving things around on our behalf.

FedEx’s business is in serious jeopardy. I wonder if they realize this.

It begins with letters, of course. FedEx is in essence a finely tuned premium mail carrier. That email put a huge dent in regular mail is old news. It’s faster and freer. When it comes to the transmission of information – one of the main uses of mail carriers – the Internet wins in almost every situation.

This doesn’t really matter to FedEx. They were never in the regular mail business. They ARE in the authenticity business and the object business, however. Both of these are under threat.

The Authenticity Business

This is how contracts between far flung business partners get negotiated:
You have a few calls to outline the deal and then someone draws up a draft contract in Word. This gets emailed out with track-changes turned on and then it goes back and forth electronically until a final version is agreed upon. This is promptly printed off, signed and faxed with the originals to follow by Fed Ex.

I have no idea why we still have to send the “originals” by physical mail. A nod to tradition I suppose. There is nothing about a laser-printed 30 page document with signatures on the last page that’s particularly more safe from tampering than an properly secured electronic copy of the same. If eBay, Amazon, Paypal and my bank can solve the authentication problem, it can be solved for contracts. For whatever reason, the business/legal world insists that it needs a copy of a sheet of paper with ink from a pen that I actually touched.

So it gets sent by FedEx and the guy shows up at your door with the package and to prove it was received, you sign for it. On a touch pad. Electronically. I don’t think that the signed documents portion of FedEx’s business is long for this world.

The Object Business

Once the Authenticated Document portion of FedEx’s business fades away, they’ll have to retreat into the molecule moving business. Here’s a need that, at least for the immediate future, doesn’t get demolished by the Internet.

At some point, rapid prototyping and 3d printing becomes a mature technology. It leaves the design studios and then the factories and ends up, if not people’s houses, then at least as commonly distributed as print shops or 24 photo developers (which are themselves getting to be less and less common). Just-in-time fabbing.

So many of the things that we ship are mass-produced and interchangeable. Take a look around you and consider all the stuff you might move, were you planning to move. How much of it is stuff where an exact copy would be fine? How much of it is stuff where a factory-new copy would better than fine? How much crap do you ship because it’s easier/cheaper to just ship it than to get a new or better one?

It’s not everything. Objects with acute sentimental value, hand crafted trinkets, mementoes, these will all be things you want to keep. But even this category is smaller than you might think. It’s not that long ago that photos were on the “must ship” list. Now they’re digital and easily reprintable, if they’re ever printed at all.

With mature 3d printing we’ve ended up with a kind of teleportation. This is the kind of thing that gives philosophers of art nightmares.

Teleportation

Need a computer at your destination? We’ll fab you one and format it from your encrypted cloud-image. It’ll be ready at the airport with your rental car and a change of clothes, which we also printed to your specifications.

Need your bike shipped? Drop it off at a reclamation facility, we’ll scan it and credit you the materials, then for less than the price of flying it across the country, we’ll rebuild it over there. For a small fee, you can fiddle with the specs.

You want to ship books? Really? Who ships books?

Because of mass-production, we’ve been living among essentially interchangeable copies for quite some time. The next step is making them utterly interchangeable. Here’s my prediction: We are less than 50 years away from the shipping of objects being as quaint and specialized a practice as shipping sheets of paper with good-wishes written them.

Whoever rises to replace FedEx? Their slogan can be: “It’s already waiting for you.”

All of: Dematerialization

  1. The Unbearable Lightness of Things – Dematerialization 1
  2. The Looming Collapse of FedEx – Dematerialization 2 ((YOU ARE HERE))
  3. The Objectless Office – Dematerialization 3

|| Filed under: collapse, futurity, speculation ||
  • Sam
    I have two 2 issues with this post.

    The first is the hard copy of documents. Keeping paper copies of contracts and stuff may seem unnecessary until you remember just how bad our track record of saving digital media is. Paper copies are easy to store, last a long time (longer than any digital media available today) and never go obsolete. I don't think there is any proof that we are getting better at this!

    The second is manufacturing on site as appose to shipping.
    this would save less transportation costs than you would think. You still need to ship all the raw materials to the destination. One could make the argument that you would be harvesting raw materials from things you didn't need anymore, but people are really bad at throwing things out.

    You will also need to transport the energy used to create the new thing. For lots of materials the energy to create something is way more than the energy to transport it. That is why energy intensive manufacturing is centered around places with cheap energy costs, such as Aluminum smelting in BC and Quebec. California can't support the energy requirements of reconstituting old objects into new useful objects. It makes more sense to ship the raw goods somewhere with cheap labour and energy costs to get recycled and manufactured again.

    3d printing may be doing well with plastic parts, but it is also a long way from competing with casting, forging, stamping and extruding to create metal parts. You can machine things, but there is no technology that allows you to print strong 3d metal parts and there are some huge technical barriers to creating one.
  • Here's the thing. A hard copy of a contract that is printed with my signature on the last page is very hard to distinguish from a fake hard copy of a contract with my signature page attached.

    That said, I take your point about archival materials, though most contracts only need to last about 7 years and we are pretty good at keeping digital versions around for that long. I think there is some evidence that we think we are getting better at this. More and more companies offer digital-only billing. Banks in particular are willing to deal with you almost entirely through electronic logins.
  • For the shipping vs building, I think the problems you list are impediments but not impossible.

    I keep thinking about how printing changed. We went from massive metal fonts and centralized presses to the current desktop regime by degrees. The first step was very limited kind of printing - the dot matrix "we give you one crappy font and you need specialized paper". It wasn't useful for much, but it was useful for some things, and used frequently enough that it was worth developing improvements.

    This led to laser printers and better and better ink technology and now it's reasonable for most people to have a pile of paper and a printer that cost them next to nothing and for businesses to have stockrooms laden with the raw materials of documents. And at the same time, print shops stayed a step ahead, selling the ability to print nicer things than you could at home.

    So yeah, maybe early home 3d printers use only plastic and can only make objects that fall within certain performance restrictions. Maybe it starts out as, like, jewelry and the latest in cup designs.

    But we can print Steel now (though no word about the strength of the resulting models). Jay Leno replaces car parts and tools by rapid prototyping.

    I imagine there is a convergence from the other direction. Materials and formats fall out of favour because they are hard to make rapidly. Like how most documents are 8.5x11 (or A4) these days.
  • As long as we have architects (and architects' associations with their lawyers and insurance people) we will never develop into a paperless society. The engineers have figured it out. A digitally signed drawing is wholly valid (and they only get printed out because contractors manage to be even further behind the curve than architects), but in Ontario, the OAA will not allow architects to scan their signatures to be applied to drawings.

    Besides this, the lawyers require hard copies for years after the building is completed just in case somebody screwed up and blame needs to be apportioned (Sam made a point similar to this above).
  • I agree with you that these are the reasons that it's currently this way. But if banks can work out a way to handle wholly electronic records, then it seems clear to me that this is a matter of convention, not necessity. And conventions fade. Eventually, the OAA will relent.
  • Brittany
    It's an interesting perspective to think about how the 3d printing industry could hurt the shipping industry. Never thought about that. If you can print things in your own office, you don't need to ship things. Good article.
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