The 5 logistics strategies of FedEx against Covid-19

FedEx undertook a particular logistics strategy to address the challenges of the Covid-19 pandemic while taking advantage of opportunities.

Because of the crucial role it plays in the movement of supply chains and the delivery of critical relief, FedEx is considered a core business and continues to operate under state of emergency and home stay orders issued in the United States and throughout the world. world.

With its services, FedEx helps its customers as they work to manage their supply chains and inventories.

FedEx and the new logistics

Currently, the company is flexing its networks and making adjustments as necessary to align with volumes and operating conditions, such as:

First

Launch of the Air Operations Coordination Center to effectively match capacity with demand on FedEx Express.

Through this coordinated approach, it reduced U.S. domestic flight hours in the fourth quarter of 2020 and redistributed flight hours to international regions.

Second

Reuses FedEx SmartPost facilities for small or large package sorting to keep pace with demand for residential services, and adds new low-cost regional FedEx Ground sorting facilities designed to handle shorter volume residential volumes in certain key markets.

Third

Implements temporary surcharges on international FedEx Express packages and air cargo shipments, effective April 6, 2020, and on all large US domestic and residential packages on FedEx Express and FedEx Ground, effective June 8 2020.

Quarter

You temporarily suspended your money back guarantees for all FedEx Express, FedEx Ground, FedEx Freight, and FedEx Office services the same day.

Fifth

It increased hiring at FedEx Ground and made temporary cuts in certain other workforces.

Pandemic

During 2020, an outbreak of a new coronavirus strain was declared a pandemic by the World Health Organization. The company began experiencing the commercial impacts of the pandemic since January 2020, when trans-Pacific traffic was affected by closures in China and the reduction of commercial air flights.

While business volumes decreased due to worldwide business closings, FedEx Ground residential delivery volumes increased to seasonal peak levels during the fourth quarter of 2020 due to home stay requests and other response measures to a pandemic.

In addition, it experienced an increase in demand for transpacific and charter flights on FedEx Express in the fourth quarter of 2020, as air cargo capacity was limited due to restrictions on commercial activities.