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

This study analyzes the impacts of Covid-19 on DHL and FedEx, including similarities and differences, and their responses to the pandemic situation within the UK. It also provides suggestions for enhancing business development during the pandemic.

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
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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
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pandemic situation consist that the firm is bounded with few government restrictions due to
which the firm also faces certain issues while doing their job in most effectual manner.
The positive impacts of Covid-19 within the FedEx organization is that it considers the
updating in return policies by extending the length of the return window. Employees of the
logistic firm are more aware about the hygiene habits while delivering the goods and services to
the customers. Company offers and improvise the image qualities in order to make the
experiences of the consumers better in most effective manner. While the negative impact
consists of sometimes stressed environment under the situation when the person is unable to take
the delivery due to COVID impacts. Then the person was unable to collect the parcel as well as
the delivery person also was not able to deliver the package. In order to avoid certain issues,
FedEx provides contactless delivery facilities in order to make their consumers as well as their
employees safe from any kind of infections.
The similarities among both the firms is because of their working industry as both the
firms are dealing in logistics services through which they try their maximum to satisfy the needs
and demands of customers of UK in effectual manner. Both the firms offer world- wide services
in order to expand their business activities geographically (Zhang and et.al., 2018). The
similarities among both the firms DHL and FedEx are that they able to provide effective and
valuable services within the external environment.:
 During pandemic situation apart from various restrictions, the companies are able to
provide appropriate and effective services to the people within the society.
 Both organizations continue their operation under even lock down situation in order to
provide basic necessities to the people living in the society and thus makes their lives
easy.
 In order to provide continuous services during in pandemic situation, both the
organizations implement temporary surcharges on all the international shipments and
freight parcels (Hazen and Ellinger., 2019).
 DHL as well as FedEx both offers non- physical contact signature options to their
customers in order to make them safe and secure along with taking in mind the security
and safety of their employees as well.
While the differences between DHL and FedEx is just because of their different objectives and
strategies in context of providing services to the consumers. In this context it has been identified
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that DHL focuses on the price based strategies in order to satisfy the needs of the customers in
reduced cost manner while the strategy of FedEx is to provide effective and high quality services
to the society of UK and thus they prepared their strategies and company objectives in that
manner only. The major differences evaluated among DHL and FedEx are:
 The sales volume has been increased by 40% in DHL after the introduction of pandemic
situation while the sales volume for FedEx has been increased around 57% during
pandemic circumstances.
 Another difference between both the logistic service providers is that FedEx is known for
its quick and effective delivery services. They effectively handle time sensitive
shipments from past various decades and thus due to which they provide services on
comparatively higher costs. On the other side, DHL compromises in that due to which
they are able to provide cheaper options of shipments to their customers (Tunio, Shaikh
and Lighari, 2021).
 The customer responses for the firm FedEx is quite effective and more eye catching than
DHL as with the help of large number of employees FedEx is able to fulfil the
requirements of customers in more appropriate and effective manner.
(b) Similarities and differences among the responses of DHL and FedEx during Covid-19
within UK
During the situation of Covid-19 situation DHL tries their maximum to offer effective
services as the other organizations are also dependent upon the logistics firms in order to run
their operation in appropriate manner. Due to which it is the basic necessity of the DHL to
provide efficient services in their operations and functional departments. In order to deal with
this, DHL adopts technological advancement as a response to the impact of the pandemic that
has helped them to maintain their business operation continuously without any kind of downtime
with all of their customers in UK. Through the whole duration of lock down situation,
technology allows the firm to connects with the customers in order to engage and transact with
them smoothly. This also ensures that their employees also provide effective services up to their
core possibilities and abilities.
With the help of technological advancements, DHL is able to approach large number of
people at stipulated time frame (Kang and Huh., 2017). During the lock down situation, the
company was able to move various critical shipments from medicines to basic necessities to
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their customers in most appropriate manner. The offerings of shipments within quick turnaround
time has helped them in order to deliver the critical parcels to their customers including PPE
kits, medicines, vaccines which are vital necessities for the pandemic situation.
In order to deal with COVID situation, DHL creates certain strategies in order to
overcome from such critical situation through effective preparation of emergency response plan.
This plan is basically related to the pre designing of the back- up plan in order to complete the
tasks and assignments in proper time frame.
 Creation of partnership network also helps the firm in addressing medical supply
shortages effectively as logistics companies have certain relaxations in order to offer
necessary services to people.
 With the evaluation of the situation, DHL opts certain changes within the environment of
United Kingdom. Company takes help of their employees after doing complete analysis
of tasks along with possible difficulties and then did allotments in order to complete
effectively (Ormanov., 2021).
 At the time of the requirement of vaccines arises in the world along with the transferring
of medicines within proper temperature fulfilled atmosphere, the DHL ensures the
deliveries efficaciously.
Thus, in all of the above manner, DHL tries their maximum to give their positive response
towards the conditions of pandemic situation.
Likewise, FedEx also adopts certain strategies in the environment of United Kingdom in
order to make their services effective during such critical situations and as a response to the
impact of pandemic. During the pandemic situation of Covid-19, many small businesses had to
close their functions and looking for some alternative ways to move their retail operations
online.
 In order to help those firms, FedEx offered many free services to the companies of UK
and also offers discounts in shipping rates to promote their business in effective manner
with providing their complete support to those small firms.
 Establishments commits to their core so that they can support such small business firms.
To assist them, they provide extra opportunities to small firms.
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 They created a separate page to provide complete information to them to provide help to
the business owners to navigate them while running their business operation in most
fruitful manner (Franke., 2017).
 They also offer tech chat options for their guests and customers in order to ask or
generate any enquiry and get them resolved in timely manner.
 They make their work podcasts feature in which guests and business owners are able to
share their insights and wisdom along with reasons for lows in running businesses.
 They provide ready to print COVID flyer options in form of posters which recommends
safety measures and social distancing understanding among the society.
 FedEx offer effective shipping solutions and various tools with the help of experts and
entrepreneurs in order to find solutions to companies.
Thus, all these measures help the FedEx to give proper response towards the Covid-19 situation
and thus through which the company is able to sustain their brand image within the market place
in front of their different competitors.
In term of similarities, it has been identified that:
 FedEx and DHL both the firms try their maximum to give their positive response
towards the pandemic crisis situation and provide their complete support in each and
every situation.
 Both firm have created and adopts certain strategies to overcome crisis situations of
pandemic in order to avoid or mitigate any kind of negatives and losses (Wu, W., and
et.al, 2021).
 Both the organizations provide their best services to all the necessary firms.
 Helps the community of employees, customers and humanity in complete manner.
Hence, it has been evaluated that both the firms are highly flexible enough in order to adopt
changes during the pandemic situation.
While in context of differences, it has been identified that:
 DHL offers services to the firms those are in requirement with cheaper costs but FedEx
helps small business firms and take necessary actions in order to provide facilities to
overcome from such drastic and losses situation.
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 For the betterment of the small businesses, Fedex offered specially a separate page in
order to handle their queries in which the solutions have been provided to them through
various expert advices. They highly focus on small business organizations and losses
they had bear during the Covid-19 situation.
 It is evident that FedEx offer services in better ways rather than DHL because they have
high volume of employees who dedicatedly work for their betterment (Amankwah-
Amoah, 2020). Thus, they are able to generate more of revenue costs in comparison to
the DHL and generates more profits for their firm.
2.The ways in which DHL and FedEx will further develop their business during and post
pandemic situation within UK
In COVID situations, people are more prone to focus on the life after Covid-19 situation.
Similarly, the DHL also focuses on their activities post COVID which needs to be adopts by
them to make their service more effective within the UK. With adopting e- commerce strategies,
DHL will able to enhance their operations in during and even after COVID situation. As the
stores are closed, then all customers are going towards the online shopping in order to fulfil their
requirements. And this is the major reason that logistics firms have increase their sales margin or
revenue generation when all other firms bear losses during pandemic critical situation. Another
requirement is related to the diversification of facilities during supply lines as during this
situation, there are various restrictions have been generated in order to provide services to
various other countries.
Government put certain restrictions in relation to transfer of goods and services while the
logistic firms are somehow enables to provide their services also along with few limitations and
lesser restrictions. Another way to enhance the brand image if the firm is to give emphasise
through turning the business activities more towards eco- friendly system (Ruiz Estrada., 2020).
They should work in a way which reduces the production of wastage and thus the costs as well
across their entire supply chain management services. Company should adopt automatic vehicles
of the latest technology in order to minimize amount of fuel utilized and lesser the amount of
pollution generation.
Post COVID there are certain ways through which DHL will able to enhance their
functioning which includes:
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 Manage their supply demand in appropriate manner using cognitive supply chains as
they have to reposition their supply chain network by identifying key suppliers, transport
lanes, alternative suppliers, etc.
 Re-imagination of operations for new normal ways of working which requires highly
adjusted operations in terms of distribution centres in order to minimise physical
contacts.
 Implementation of goods to person concept and robotics based picking services will help
in order to avoid physical contact deliveries while operating or handling packages.
 Creation of new offerings to handle demand which requires new transportation players to
provide support to their customers or even organizations who adopts their services.
 Ensure safety for employees along with customers to prevent pandemic spread and
ensures business continuity.
 In order to ensure company employees safety, they have to redesign the whole structure
which make sure about the control of disease spread. Temperature measurements, social
distancing and digital inspections are new measures that needs to be fulfilled at the office
premises.
 Drivers who are responsible to distribute packages are highly efficient enough to take
safety measures while providing services into impacted areas.
In context of FedEx, it has been stated that as the pandemic situation swept through the
world and severely impacted the logistics distribution. There are certain requirements arises in
order to take necessary actions to ease and make business in most effective manner. In order to
improve distribution logistics within the FedEx post COVID situation, it has been
identified that:
 Company needs to be responsive and informed to survive because the logistics programs
that has been adopted prior to COVID situations necessarily requires changes in most
appropriate manner.
 Programs which promotes effective communication and logistics programs with the
involvement of measures who promotes social distancing concept through effective
methods will be adopted by the firm post pandemic.
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 Usage of software in order to optimize distribution channels. It should be in a way which
provides notifications to the customers regarding any changes that have been adopts
while doing deliveries of packages.
 With proper feedbacks the firm will able to provide good and supportive services to them
(Kang, M., and et.al., 2020).
 Keep updated in terms of doing latest and best improvements in software and includes
up-gradation in each area after the COVID situation ends.
 Giving proper training and educating the employees helps the firm to meet company
goals and objectives in most appropriate manner so that they are able to adopt safety
measures and follow protocols in most befitting mode even after pandemic.
 As FedEx is a leading logistic firm so they have to adopt measures to maintain and
sustain their brand value within the market space.
 Restrictions imposed by the government forced businesses to come up with creative
ideas to navigate the business activities in most fruitful style (van der Weijden, A.,
2018).
In addition to this aspect relating to the current pandemic the strategy which need to be
focused by both DHL and FedEx is to lay emphasis over the new safety protocols with respect to
the current COVID 19. This is particularly because of the reason that the government of the
country has provided many different regulation relating to the safety and hygiene factors at time
of delivery. Hence, both DHL and FedEx need to comply with these strategies with respect to
maintaining safe working.
Along with this another way of developing the business post COVID 19 is to make
effective use of the latest technology relating to the transportation and the e- commerce trends.
This is particularly because of the reason that there are many different trends going among the
consumers and because of this it is essential for both the companies to select the effective
technology and trends for working in proper and effective manner.
Moreover, in addition to this, effective collaboration can be undertaken by both the
companies with the suppliers. This is essential for the reason that when the collaboration will be
present with the supplier then this will provide a more coordinated work and will result in on
time delivery of the goods and services to the consumers. Hence, this will result in proper
delivery to the consumer and this will satisfy the consumers to a great extent.
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CONCLUSION
From the above report it has been concluded that the pandemic situation affects all the
firms in forceful manner. Logistics is the only industry which faces sales and revenue
maximisation after the involvement of COVID situations. It is because they are also somehow
affected with government restrictions. This report has highlighted the concept of various impacts
and responses of DHL and FedEx during such pandemic circumstances along with the strategies
they need to adopt in order to avoid any negative effects. Furthermore, this report also described
the suggestions for both the firms in order to develop their business operations during and even
after the Covid-19 that potentially affects the working and thus requires certain changes within
their working style in order to provide complete satisfaction to their employees as well as
customers.
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REFERENCES
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restrictions on services-trade costs.
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Logistics Operations Management (GOL) (pp. 1-5). IEEE.
Ormanov Jr, V., 2021. Impact of mobility solutions on logistics services.
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Digitalization of the Economy. Journal of Open Innovation: Technology, Market, and
Complexity, 7(1). p.58.
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van der Weijden, A., 2018. The effect of COVID-19 on stock prices.
Xu, Z., and et.al., 2020. Impacts of COVID-19 on global supply chains: facts and
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Online
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te/infrastructure/resources/the+impact+of+covid-19+on+logistics>
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