International Logistics: Impacts of Covid-19 on DHL and FedEx

INTERNATIONAL
LOGISTICS

Table of Contents
INTRODUCTION...........................................................................................................................3
SCOPE OF ANALYSIS..................................................................................................................3
1. Identification and analysis of similarities and differences between DHL and FedEx.......3
2.The ways in which DHL and FedEx will further develop their business during and post
pandemic situation within UK.............................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International logistics service providers are the firms that connect various organizations
to market for providing services such as multi model transportation system, cargo transmission,
storage and stock management. Such institutions are largely affected by the impacts of Covid-19
pandemic situation. As a constitutional part of value chains, the enterprises are both inside and
crossways the worldwide borders, logistic firms alleviate commercialism and transaction
services. It provides their complete support to the organizations in order to get their products to
the consumers within the market space. Supply chain disturbance to the sector caused by
pandemic could therefore impact competitiveness, profitable development and occupation
conception. The impact is drastic as due to the situations of lock down border closure had been
occurred which highly restricts the movements of goods and services from one place to another
(Parfenov, A., and et.al., 2021)
In order to complete this report DHL and FedEx logistic firms have been chosen through
which the description about the impacts of Covid-19 along with similarities and differences will
be explained. Moreover, the evaluation of responses of both the firms in context of Covid-19
also will be considered in this study in detail. Apart from this, the study will also highlight the
concept of suggestions for the organizations in order to enhance their business development
within the market space during pandemic situation.
SCOPE OF ANALYSIS
1. Identification and analysis of similarities and differences between DHL and FedEx
(a) Similarities and differences among DHL and FedEx in context of impact of Covid-19
The current pandemic has created many different types of impact over the working of the
companies and the different economies. This is particularly because of the reason that the
current pandemic was a global event and this has affected the working in a great way. This
pandemic has affected the whole world and each and every type of industry. The pandemic has
also affected the logistics industry to a great extent. Thus, this pandemic created both the
positive and negative impacts over the working of the different industries and especially the
logistics industry. This is particularly because of the reason that when the pandemic occurred the
transportation was stopped. Hence, this was the major impact which the pandemic has created
over the working of the logistics industry. The major reason underlying this fact is that due to
3

the pandemic the interstate and the geographical boundaries were closed. Hence, because of this
the transportation and logistics was affected to a great extent. But this also created some positive
impact as well. this is pertaining to the fact that due to the pandemic most of the people were
dependent on the home delivery services only (The impact of COVID- 19 on logistics, 2021).
This was pertaining to the fact that many people were only dependent over the online providers
only. Hence, because of this as well the logistics was necessary as this involved the delivering of
the product and services to the consumers whenever they require.
In addition to this another major impact which the pandemic created over the logistics
industry and specifically on the DHL and FedEx is that there was a labour shortage within the
economy. This is pertaining to the fact that when there was restriction to move from one place to
another then the people were also not allowed to move from one place to another. Hence, as a
result of this the people were also not allowed to move from one place to another which resulted
in shortage of labour and this has affected the logistics industry to a great extent. This is
pertaining to the fact that within the logistics industry the requirement of workers and labour is
very high for delivering the product and services to the consumer at their doorstep. Hence, this
pandemic has created a shortage of the labour for the industry.
In the global health crisis situation, DHL network plays vital role in improving along
with saving many lives in assorted terms such as sending emergency medical equipment and
supplies to health workers, delivery of necessary goods or items for the fulfilment of basic
requirements of customers, and by giving solutions to large amount of organizations in order to
continue their operations through online sources. DHL business operations continuously opt for
services to justify potential impacts on the firm. The negative impacts of pandemic situations are
an integral part of the DHL as well and requires continuous risk planning in most effective
manner (Benz, Gonzales and Mourougane., 2020). To avoid negative impacts on the firm, DHL
ensures to meet weekly updates set by top management people in order to evaluate the situation.
They ensure complete fulfilment of protocols within each office premises of DHL across the
world.
The impacts of Covid-19 on DHL is that it maximises the sales volume of the company
as each and every member within the society are more interested towards getting home delivery
services in most fruitful manner which DHL are able to provide. While the negative impacts of
4