FedEx Express will not renew contract with Amazon
The US-based courier giants, FedEx Express, will not extend its domestic contract with Amazon and will focus on serving the broader e-commerce market, according to Supply Chain Dive.
With the contract set to expire on 30 June, the company decided against renewing due to “significant demand and opportunity for growth in e-commerce” and stressed that only 1.3% of FedEx’s total revenue comes from Amazon.
The move will not affect any existing contracts or Amazon shipments through other FedEx business units, like FedEx Ground, or last-mile deliveries and international shipments.
Following the end of the partnership, FedEx has displayed a lack of interest in delivering packages for a firm and remains keen on expanding its own air network.
In an email to Supply Chain Dive, a spokesperson for Amazon, said: "We respect FedEx’s decision and thank them for their role serving Amazon customers over the years.”
5 minutes with: Ivalua’s Sundar Kamak
Who are you?
My name is Sundar Kamak, I’m Head of Manufacturing Solutions at Ivalua. I’ve been with the company for around two years now, and I’m responsible for our industry solutions and our pre-sales team. Before joining Ivalua I spent almost 20 years in the source-to-pay procurement space, working for a number of providers. But I got my career started in manufacturing and supply chain, specifically in automotive and aerospace.
And what is currently taking up the majority of your professional time?
The last year I've been focused in helping organisations put together a digital transformation strategy, especially manufacturing companies, so they can continue to address some of the challenges they face due to the COVID pandemic.
The traditional approach of engineers designing their latest product then procurement going off to source no longer works
What are the biggest challenges facing your corner of supply chain?
We have a lot of clients coming from different backgrounds - aerospace, high-tech, automotive - and they’re feeling the pressure and the crunch. There’s a lack of product, lack of material availability, lack of resources, labour shortages. So, I work with the leadership in these organisations, try to understand what problems they're looking to solve and come back with Ivalua solutions that can help them address some of these challenges.
Where do the biggest opportunities lie?
If we look at manufacturing, it all comes back to procurement and supply chain being involved sooner in the process. The traditional approach of engineers designing their latest product then procurement going off to source no longer works. It’s important to treat suppliers like partners, which means you build trust, so they can participate very early on in the product design and product development process. It’s not done consistently in the manufacturing sector, but it will be key.