Issues and Challenges Faced by FedEx in Logistics

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