Issues and Challenges Faced by FedEx in Logistics

Global logistics and supply
chain management
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Table of contents
REFERENCES................................................................................................................................6
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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. In present times, FedEx is known for its best delivery services through air that is
federal express. There are many other flagship as well of company such as fedex supply chain,
freight and other services (Govindan, and Shukla, 2018). 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. They are highly impacting on service delivery and growth of company.
Similarly, FedEx is also facing several issues which is explained as :
Fuel cost- this is common challenge that is faced by FedEx in logistics industry. In this the
contribution of cutting fuel cost is challenging. It is expected that high fuel prices is going to
result in high transport cost. Hence, it will led to rise fuel surcharge. Thus, this will directly
effect on customers or third parties. There will be increase in overall cost of transportation.
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