May 17, 2020

FedEx forecasts record holiday season shipping numbers

Supply Chain Digital
Supply Chain Management
FedEx Supply
Freddie Pierce
2 min
North American shipper FedEx projects Dec. 12 as the busiest day in company history
Could record-breaking holiday season shipping numbers prove that there has been some sort of recovery in the supply chain and the world economy? Most e...

Could record-breaking holiday season shipping numbers prove that there has been some sort of recovery in the supply chain and the world economy?

Most experts say no, despite the fact that FedEx plans on shipping 260 million packages between Thanksgiving and Christmas this year. The logistics company, known for its creative supply chain management solutions, is projecting to ship 17 million packages on Dec. 12, the busiest anticipated shipping day of 2011.

Overall, the 260 million packages FedEx plans to ship this holiday season are a 12 percent increase from 2010. The problem with that growth is that most of that increased package volume would be created by the logistics company’s least-profitable, eCommerce-related residential delivery service.

FEDEX 2010 HOLIDAY SEASON SHIPPING

FedEx SmartPost handles the bulk of the company’s low-weight residential shipping, which offers low profit margins because the lightweight packages don’t arrive to destinations on time-definite schedules.

CEO Fred Smith reportedly said earlier in October that he only expects retail sales to be up 2.5 to 3 percent this holiday season.

SEE OTHER TOP LOGISTICS STORIES IN THE SUPPLY CHAIN DIGITAL CONTENT NETWORK

Is the USPS courier model irrelevant?

Melting polar ice opens new Arctic shipping routes

Check out October’s issue of Supply Chain Digital!

FedEx and other shipping companies have taken full advantage of the online shopping boom, which has helped the Memphis, Tenn.-based shipping leader increase its volume. To deal with the shipping increases, FedEx plans to hire 20,000 seasonal workers, which is about 3,000 more than they hired last year.

As expected, the company didn’t change its overall financial outlook after announcing the increase holiday shipments. In September, FedEx cut its profit outlook over fears of a global double-dip recession.

Click here to download Supply Chain Digital’s iPad app!

Share article

Jun 8, 2021

DHL Claim Multi-Sector Collaboration Key to Fighting COVID

DHL
Supplychain
COVID19
Logistics
3 min
Global logistics leader DHL’s new white paper highlights what supply chain professionals have learned one year into the pandemic

Since January, global logistics leader DHL has distributed more than 200 million doses of the COVID vaccine to 120+ countries around the globe. While the US and UK recently rolled out immunisation plans to most citizens, countries with less developed infrastructure still desperately need more doses. In the United Arab Emirates (UAE), which currently has one of the highest per-capita immunisation rates, the government set up storage facilities to cover domestic and international demand. But storage, as we’ve learned, is little help if you can’t transport the goods.

 

This is where logistics leaders such as DHL make their impact. The company built over 50 new partnerships, bilateral and multilateral, to collaborate with pharmaceutical and private sector firms. With more than 350 DHL centres pressed into service, the group operated 9,000+ flights to ship the vaccine where it needed to go. 


 

Public-Private Partnerships

With new pandemic knowledge, DHL just released its “Revisiting Pandemic Resilience” white paper, which examined the role of logistics and supply chain companies in handling COVID-19. As Thomas Ellman, Head of Clinical Trials Logistics at DHL, said: “The past one year has highlighted the importance of logistics and supply chain management to manage the pandemic, ensure business continuity and protect public health. It has also shown us that together we are stronger”. 

 

Multisector partnerships, DHL said, enabled rapid, effective vaccine distribution. While international scientists developed a vaccine in record time—five times faster than any other vaccine in history—manufacturers ramped up production and logistics teams rolled out distribution three times faster than expected. When commercial routes faced backups, logistics operators worked with military officers to transport vaccines via helicopters and boats. 

 

In the UAE, the public-private HOPE Consortium distributed billions of COVID-19 doses to its civilians as well as other countries in need by partnering with commercial organisations such as DHL. For the first time, apropo for an unprecedented pandemic, logistics companies made strong connections with public health and government.

 

“While the race against the virus continues, leveraging the power of such collaborations and data analytics will be key”, said Katja Busch, Chief Commercial Officer DHL and Head of DHL Customer Solutions & Innovation. “We need to remain prepared for high patient and vaccine volumes, maintain logistics infrastructure and capacity, while planning for seasonal fluctuations by providing a stable and well-equipped platform for the years to come”. 


 

How Do We Sustain Immunisation? 

By the end of 2021, experts estimate that we need approximately 10 billion doses of vaccines—many of which will be shipped to areas of the world, such as India, South Africa, and Brazil, that lack significant infrastructure. This is perhaps the greatest divide between countries that have rolled out successful immunisation programmes and those that have not. As Busch noted, “the UAE’s significant investments in creating robust air, sea, and land infrastructure facilitated logistics and vaccine distribution, helping us keep supply chains resilient”. 

 

Neither is the novel coronavirus a one-time affair. If predictions hold, COVID will be similar to seasonal colds or the flu: here to stay. When fall comes around each year, governments will need to vaccinate the world as quickly as possible to ensure long-term immunisation against the virus. This time, logistics companies must be better prepared. 


Yet global immunisation, year after year, is no small order. To keep reinfection rates low and slow the spread of COVID, governments will likely need 7-9 billion annual doses of the vaccine to meet that mark. And if DHL’s white paper is any judge of success, multi-sector supply chain partnerships will set the gold standard.

Share article