Issues and Challenges Faced by FedEx in Logistics

This presentation discusses the various issues and challenges faced by FedEx in the logistics industry. It covers topics such as fuel costs, government regulations, and the need for improvement in customer service. The presentation also explores potential solutions and strategies to overcome these challenges.

Global logistics and supply chain
management

Company description
 FedEx is an American MNC which is headquartered in Memphis, Tennessee, US. It is a public
limited company that operate in logistics industry.
 It was founded by Frederick w smith in 1971. The company name Fedex is abbreviation of its air
division, federal express that was used till 2000.
 The firm is also a major client of US government and also provide services to US postal services
via its fedex smart post. FedEx operate worldwide and offer courier and logistics services.
 There are more than 600, 000 employees working in firm. Along with that, operating income in
2019 was $ 4466 billion and the total asset owned by firm is worth $54403 billion. FedEx's
importance in both the US and the world have made it a common topic in popular culture.

Issues and challenges faced by FedEx in logistics
 As said by Tu, (2018), logistics and supply chain industry are most complex sector to operate in.
This is because the sector operates at worldwide. So, there is a lot of complexity and issues which
is faced by companies.
 The issues are related to costs, safety of products, legal, tariff, etc. Apart from it, the most
important service which is required to be delivered by organisation in logistics is timely delivery of
goods.
 Also, it requires to maintain safety of goods as well. However, with change in technology there are
certain issues that is being faced by organisation in logistics.

CONT..
They are highly impacting on service delivery and growth of company. Similarly, FedEx is also facing
several issues which is explained as :
 Fuel cost
 Business improvement process

CONT..
 Economy
 Government regulations

CONT..
 Improve customer
 Environmental issues

CONT..
 In the view of Zijm, and Regattieri, (2019), the issues in logistics industry is rising to a great
extent. Due to that it is difficult for firms to operate in market in free way.
 There are a lot of compliance and rules to be followed. However, in every market FedEx have to
work in different way. Apart from it, despite making improvement in process and implementing
technology the compliance are not effectively followed.
 In logistics sector the main issue is emission and rise in pollution. Hence, government has formed
certain compliance that restricts flexible operations of firm. Another thing is the capacity of
logistics has increased.

CONT..
 Thus, FedEx is not able to handle and manage the delivery of services in effective way. If they do
then the cost of delivering goods is high and profits are low. In addition to it, the cost of
implementation of technology is high. Also, it requires an expert and other person to maintain
technology. Besides that, it also need advance IT infrastructure for technology to install it. Hence,
FedEx is not able to maintain technology as huge cost is incurred in it.
 But on the other hand Tu, (2018), said that issues can be easily handled and overcome. This
requires an effective and proper planning.

CONT..
 Apart from it, there is need to form flexible laws and regulations so that it can be modified as per
the government compliance. This will make it easy for firm to coordinate with government and
work in effective way. Besides that, FedEx can operate in free market.
 The use of technology will also enable in reducing emission and pollution. With that there will be
improvement in process and operations of organisation.

REFERENCES
Books and journals
 Govindan, K.. and Shukla, N., 2018. Big data analytics and application for logistics and supply
chain management.
 Tu, M., 2018. An exploratory study of Internet of Things (IoT) adoption intention in logistics and
supply chain management. The International Journal of Logistics Management.
 Yu, Y., and Huang, G.Q., 2017. E-commerce logistics in supply chain management. Industrial
Management & Data Systems.
 Lai, Y., Sun, H. and Ren, J., 2018. Understanding the determinants of big data analytics (BDA)
adoption in logistics and supply chain management. The International Journal of Logistics
Management.
 Zijm, H.. and Regattieri, A., 2019. Operations, logistics and supply chain management: definitions
and objectives. In Operations, Logistics and Supply Chain Management (pp. 27-42). Springer,
Cham.

THANK YOU