International Logistics: DHL and Fed Ex

This document discusses the impacts of Covid-19 on international logistics firms DHL and Fed Ex. It explores the similarities and differences between the two companies and their responses to the pandemic. Additionally, it discusses their plans for further business development during and after the pandemic in the UK.

INTERNATIONAL
LOGISTICS

Table of Contents
INTRODUCTION...........................................................................................................................1
SCOPE OF ANALYSIS..................................................................................................................1
1. Identification and analysis of similarities and differences between DHL and Fed Ex ..........1
2.The ways in which DHL and Fed Ex will further develop their business during and post
pandemic situation......................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

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 Fed Ex 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 Fed Ex
(a) Similarities and differences among DHL and Fed Ex in context of impact of Covid-19
DHL is an international courier company which offers packaged delivery and express
mail services to their customers across the global boundaries. The delivery rate of DHL is
approximately 1.6 billion parcels over a year. DHL express mail service is a division of the
German logistics firm Deutsche post. There are around 420000 employees are working within
the organization (Xu and et.al., 2020). The company has huge and successful track record in
order to delivering effective services related to the transformational deals. It effectively
addresses huge and critical business complex issues, driven by internal as well as external level
for change and thus generates important value for the consumers across the world. It is well
known that the pandemic situation drastically affects the firms all over the world, during that
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time, logistic firms are the ones who are able to provide services with some restrictions. During
pandemic situation, the mission and goal of DHL is to connecting people and improve their lives
is the foremost concept.
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 equipments 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 evolute the situation.
They ensures complete fulfilment of protocols within each office premises of DHL across the
world.
Fed Ex is another well established logistics firm headquartered in Memphis, Tennessee.
Fed Ex provides overnight shipping services as well as system capable of tracking packages. It
provides real time location updates to their customers due to which now they are operating
currently in more than 220 countries all over the world. The organization shares a team of
4,30000 employees all over their office premises with 190000 motorized vehicles in order to
pick up and drop facility provides to the customers. They ship more than 15 million shipments
per day (Akintokunbo and Adim., 2020). Due to the important role that has been played by Fed
Ex for the betterment of the society they continuously provide their services and delivers critical
relief to their customers. They continuously operate under emergency situations with the
involvement of some restrictions in global supply chain management. The impact of Covid-19
causes local, state as well as national government across the world to issue activity and travel
limitations on day to day basis. There are certain activities which drastically affects the high
standard services of Fed Ex which includes suspension of the decision regarding money back
guarantee in case of any kind of delays.
The similarities among both the firms DHL and Fed Ex are that they able to provide
effective and valuable services within the external environment. During pandemic situation with
the help of providing highly important saving services along with certain restrictions governed
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in most efficient and appropriate manner. 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 Fed Ex 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.
The major difference evaluated among DHL and Fed Ex is in their sales volume which
has been increased by 40% in DHL after the introduction of pandemic situation while the sales
volume for Fed Ex has been increased around 57% during pandemic circumstances. Another
difference between both the logistic service providers is that Fed Ex 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 where as
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 Fed Ex
is quite effective and more eye catching than DHL as with the help of large number of
employees Fed Ex is able to fulfil the requirements of customers in more appropriate and
effective manner.
The similarities among both the firms is because of their working industry as both
the firms are dealing in logistics services through which they tries 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). While the differences between DHL and Fed Ex is just because of their
different objectives and strategies in context of providing services to the consumers. In this
context it has been identified 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 Fed Ex 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.
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(b) Similarities and differences among the responses of DHL and Fed Ex 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 advancements 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 while 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 moved various critical shipments from medicines to
basic necessities to their customers in most appropriate manner. The offerings of
shipments within quick turn around time has helped them in order to deliver the critical
parcels 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 which 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 the task in
most efficient manner (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, then DHL ensures the deliveries with most efficacious methods. Thus, in all of
the above manner, DHL tries their maximum to give their positive response towards the
conditions of pandemic situation.
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Likewise, Fed Ex also adopts certain strategies in the environment of United
Kingdom in order to make their services effective during such critical situations. 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 to avoid physical
place costing. In order to help those firms, Fed Ex 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 also provide extra opportunities to small firms such. 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 guests and business owners are able to share their insights and
wisdom and reasons for lows in running businesses. They provides ready to print Covid
flyer options in form of posters which recommends safety measures and social distancing
understanding among the society. Fed Ex offer shipping solutions and various tools in
order to find effective solutions to companies with the help of most of the entrepreneurs
and experts. All these measures helps the Fed Ex 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.
Thus in term of similarities, it has been identified that Fed Ex and DHL both the
firms tries their maximum in order to give their positive response towards the pandemic
crisis situation and provide their complete support in each and every situation. Both firm
have create 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 maximum best services to all the necessary firms and helps
them appropriately and deepen its commitments to its 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.
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While in context of differences, it has been identified that DHL offers services to the
firms those are in requirement with cheaper costs but Fed Ex helps small business firms
and take necessary actions in order to provide facilities to make them overcome from such
drastic and losses situation. For the betterment of the small businesses, Fed ex offered
specially a separate page in order to handle their queries in effective manner 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 Fed Ex offer services in better ways rather than DHL because they have high
volume of employees who dedicatedly work for their betterment (Amankwah-Amoah, J.,
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 Fed Ex will further develop their business during and post
pandemic situation within UK
In Covid situations, people are more prone to focuses 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
requirements 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
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lesser the amount of pollution generation. Post Covid there are certain ways through which DHL
will able to enhance their functioning which includes:
 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, distances, time and costs incurred within the operations.
 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 in
order to provide support to their customers or even organizations who adopts their
services. Deliveries should be in a manner which avoids physical contacts with their
customers while delivering packages at their home, while it should be in a manner to
collects packages from curbside or drone or automated guided vehicle based delivery.
 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 or collection hubs. Drivers who are
responsible to distribute packages are highly efficient enough to take safety measures
while providing services into impacted areas.
In context of Fed Ex, 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 Fed Ex, 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.
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 Programs which promotes effective communication and logistics programs with the
involvement of measures who promotes social distancing concept through effective
methods.
 Usage of software in order to optimize distribution channels most effective. It should be
in a way which provides notifications to the customers regarding any changes that have
been adopts while doing deliveries of packages.
 In order to stand out in such drastic situation, going for some extra miles might help the
firms to overcome certain challenges. It includes reliability in dispatcher agents and
customers. Effective customer support system helps Fed Ex to overcome from pandemic
situations through efficient methods. 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 where ever it highly requires.
 Giving proper training and educating them helps the firm to meet company goals and
objectives in most effective and appropriate manner so that they are able to adopt safety
measures and follow protocols in most befitting mode.
 As Fed Ex is a leading logistic firm so they have to adopt measures accordingly in order
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).
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 Fed Ex during such pandemic circumstances along with the strategies
they needs 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
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changes within their working style in order to provide complete satisfaction to their employees
as well as customers.
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REFERENCES
Books and Journals
Xu, Z., and et.al., 2020. Impacts of COVID-19 on global supply chains: facts and
perspectives. IEEE Engineering Management Review, 48(3). pp.153-166.
Benz, S., Gonzales, F. and Mourougane, A., 2020. The Impact of COVID-19 international
travel restrictions on services-trade costs.
Akintokunbo, O.O. and Adim, C.V., 2020. COVID-19 and Supply Chain Disruption: A
Conceptual Review. Asian Journal of Economics, Business and Accounting, pp.40-
47.
Hazen, B. and Ellinger, A., 2019. Logistics Customer Service Revisited. Bingley, UK:
Emerald Publishing Limited.
Ormanov Jr, V., 2021. Impact of mobility solutions on logistics services.
van der Weijden, A., 2018. The effect of COVID-19 on stock prices.
Parfenov, A., and et.al., 2021. Transformation of Distribution Logistics Management in the
Digitalization of the Economy. Journal of Open Innovation: Technology, Market,
and Complexity, 7(1). p.58.
Kang, H. and Huh, C., 2017. Exploration of the Sources of Competitive Advantage: UPS
vs. FedEx. Journal of Management Cases, p.5.
Khan, S.A., Ahmed, W. and Ubaid, A., 2020, October. A Decision Support System for
Logistics Performance Evaluation of Courier Company. In 2020 5th International
Conference on Logistics Operations Management (GOL) (pp. 1-5). IEEE.
İNDAP, Ş., 2019. The status of cargo companies in e-commerce logistics and innovative
solution proposals to improve their competitiveness. Journal of Entrepreneurship
and Innovation Management, 8(2). pp.39-67.
Zhang, C., and et.al., 2018. Established Companies' Strategic Responses to Sharing
Economy Threats. MIS Quarterly Executive, 17(1).
Holt, T.J. and Lee, J.R., 2020. A Crime Script Analysis of Counterfeit Identity Document
Procurement Online. Deviant Behavior, pp.1-18.
Van Asch, T., and et.al., 2020. Cross-border e-commerce logistics–Strategic success factors
for airports. Research in Transportation Economics, 79. p.100761.
Franke, M., 2017. Network design strategies. In Airline Operations (pp. 44-60). Routledge.
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