FedEx: Ensuring Efficient Logistics with Real-Time Tracking

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FedEx is a market leader when it comes to transportation and logistics solutions
Salil Chari, SVP at FedEx, makes the case for real-time tracking, predictive analytics and robust security measures to meet market demands in Asia-Pacific

Proactive visibility in logistics is crucial to managing the growth of high-value shipments in the Asia-Pacific region. 

According to a 2023 report by McKinsey, companies that implement advanced tracking and visibility solutions can reduce logistics costs by up to 15% and improve delivery times by 20%. Furthermore, a survey by Gartner reveals that 74% of logistics professionals in APAC consider enhanced visibility as a key factor in mitigating risks and improving supply chain resilience.

Here, Salil Chari, SVP for Marketing and Customer Experience, Asia Pacific at FedEx, explains the need for real-time tracking, predictive analytics and robust security measures to meet market demands and ensure efficient logistics operations.

Amid increasing demand for electronics, pharmaceuticals and luxury goods in APAC, how is FedEx proactively preventing disruptions during transit? 

Demand for high-value shipments in the Asia-Pacific region is on the rise, with an annual growth rate of 8-10% projected through 2024, driven by the increasing need for electronics, pharmaceuticals and luxury goods. The shift is reshaping logistics, particularly in the pharmaceutical sector, where an aging population and growing middle class are fuelling expansion.

By 2025, the APAC pharmaceutical market could exceed US$400bn. With this surge, the high-value goods market is forecasted to grow by more than 20% each year, prompting businesses to seek smarter and more reliable logistics solutions.

Salil Chari, SVP for Marketing and Customer Experience, Asia Pacific at FedEx

FedEx Surround is designed to meet these challenges by offering real-time tracking and AI-powered predictive analytics. These tools help businesses closely monitor shipments, foresee disruptions and make quick, informed decisions, reducing transit-related issues. Through advanced sensor technology like SenseAware ID, FedEx provides continuous monitoring, enabling immediate intervention when shipments deviate from their planned path, particularly crucial for temperature-sensitive products like vaccines. Additionally, FedEx offers 24/7 dedicated support, providing real-time insights to ensure smooth operations across complex supply chains.

As the demand for just-in-time delivery grows, FedEx Surround is helping businesses not only manage logistics more efficiently but also turn their supply chain management into a strategic advantage. With real-time monitoring and intelligent intervention, it helps businesses thrive in today’s fast-paced, high-demand environment.

How does FedEx push innovation forward in the Asia-Pacific region?

The movement of high-value goods demands constant monitoring and the Asia-Pacific region is experiencing exciting growth in this area. Innovations like FedEx Surround are stepping up to meet our customers' needs for enhanced visibility and control.

This region is truly a hotbed for innovation, fuelled by a dynamic economy that’s constantly evolving. With mobile internet penetration projected to hit 61% by 2030, the expanding digital landscape is boosting customer engagement and paving the way for even more innovation.

At FedEx, we’ve been pioneers in logistics innovation for more than four decades leading with package tracking for the industry. We use automation in our daily operations, including in the creation of Air Waybills (AWBs), to streamline processes, minimise errors and enhance the shipping experience for our customers. By harnessing technology, we’re making supply chains smarter and ensuring logistics is not just easier but also more efficient and responsive to the evolving needs of businesses across the region.

Our focus on flexibility, efficiency and intelligence helps us design solutions like FedEx Surround to meet the specific needs of businesses, providing real-time monitoring and data-driven insights that empower proactive shipment management. It enhances visibility throughout our network, which is especially crucial for sensitive goods, giving our customers enhanced insights and control they need to grow their business.

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COVID-19 exposed vulnerabilities in global supply chains. How has FedEx contributed to building more resilient supply chains in the Asia-Pacific region?

Throughout the pandemic, FedEx has been a key player in helping businesses across APAC build more resilient and adaptable networks.

Tapping into real-time data and embracing supply chain diversification is vital for companies looking to navigate disruptions and succeed. At FedEx, we continuously monitor global trends and leverage insights from our extensive network to stay ahead of our customers' evolving needs, ensuring we remain agile and responsive in this fast-changing market.

One major shift we’ve noticed is the push for diversification beyond traditional manufacturing hubs. Businesses are increasingly sourcing materials and products from various suppliers across different markets, reducing their reliance on a single source. This flexibility is essential for managing disruptions.

We’re also seeing rapid growth in intra-Asia trade, particularly between China and Southeast Asia, which is fuelling demand for robust logistics solutions. In response, FedEx has enhanced regional connectivity by launching new flights between Ho Chi Minh City and our Asia-Pacific hub in Guangzhou. This operational enhancement has cut down transit times, enabling businesses to move goods more efficiently between Asia and Europe. By providing faster and more reliable connections, we’re helping companies in Southeast Asia stay competitive in the global market, especially as supply chain diversification accelerates.

As Asia positions itself as the fastest-developing region for imports in 2024, businesses face the challenge of efficiently managing customs and import processes. To tackle this, we’ve integrated the customs clearance process into our new intelligent FedEx Import tool. This tool offers comprehensive visibility, real-time updates and smoother, more predictable operations, enabling businesses to streamline their supply chain processes and meet rising demand.

Modern supply chains are increasingly complex and diversified, making advanced technology essential for effective management. FedEx empowers businesses with its extensive network capabilities and digital solutions, preparing them to navigate future disruptions and uncertainties.

FedEx Surround offers real-time tracking and AI-powered predictive analytics

How does FedEx achieve a balance between operational efficiency and sustainability in its supply chains?

Our vision to ‘make supply chains smarter for everyone’ naturally aligns with pursuing greater efficiency and sustainability within our own network.  Our collective goal as a global corporation is to achieve carbon-neutral operations by 2040 and we are implementing initiatives such as vehicle electrification to work toward this target. In China, nearly 20% of our ground fleet is already electric. Globally, FedEx is working toward a goal of 100% of parcel pickup and delivery vehicle purchases being zero-tailpipe emission electric vehicles by 2030. 

We have also opened new energy-efficient facilities in markets like Singapore, China and Australia with energy-efficient electrical fixtures and automatic lighting controls to reduce electrical consumption. The FedEx Incheon Gateway, for example, features water capture systems and energy-efficient lighting supplying approximately 19% of the facility’s energy needs per month. 

In aviation, we recognise that viable alternatives to carbon-based jet fuels are limited. Therefore, we have pledged US$100 million to the Yale Center for Natural Carbon Capture to accelerate research into large-scale carbon sequestration methods based on the Earth’s natural processes to help offset greenhouse gas emissions equivalent to those from current airline operations.

Our commitment to sustainability extends to various aspects of our operations, including vehicle electrification, packaging, fuel conservation, aircraft modernisation and more efficient facilities. Our customers can also benefit from our cloud-based tool, FedEx Sustainability Insights, which estimates CO2e  emissions at both the package and account levels. This tool leverages FedEx scan data across our network, among other inputs, to provide reports on estimated emissions for eligible shipments. 


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