2008 Competitive Market Review L13983
2008 Competitive Market Review
Read MoreTag: USA
CPL – B2C will drive European express growth
B2C deliveries will be the major growth market for the European express and parcels industry in the next few years along with international deferred shipments as customers downtrade from premium express to slower but cheaper products, the Courier and Parcel Logistics conference in London was told.
Home deliveries will grow strongly as consumers increasingly shop on the internet instead of in the high street, but issues surrounding “final mile“ deliveries will continue to pose operational challenges, senior industry managers said on the event’s opening day.
Speakers agreed that the B2C market would move towards segmentation between premium deliveries of higher-value goods and standard delivery of lower-value items. However, there was little customer take-up of parcel collection and drop-off points so far, they commented.
Addressing market trends, speakers said that the world economic slowdown and recent financial markets turbulence would impact on business. The express industry would see fewer shipments and more bundling of volumes from financial customers, while customer relationships were being shaken up by the rapid changes in the financial sector. More generally, operators needed to right-size their networks, remove excess capacity but not endanger their customer service levels.
Read MoreFedEx Office cuts 650 workers
FedEx Office is cutting 650 jobs worldwide, as the company plans to shut FedEx Kinko’s stores in the USA, Australia, the Netherlands and Mexico. Australia has arguably been the hardest hit, with approximately 200 jobs set to go in the US, and 250 Australian jobs making up the 450 jobs likely to be cut outside the US. Likewise, 17 stores in total will be closed outside the US, 11 of these in Australia.
A formal date for these closures is yet to be set, though the company says it is aiming to have them all done by May 31st, the end of the US financial year.
The company rejected the notion that the decision was made in light of this week’s stock market plunge which has signaled a global economic downturn.
Robertson claims the company didn’t take the decision lightly, and canvassed a variety of options before settling on a pull-out.
With roughly 250 employees on its books in Australia, the company says it is hoping to find positions for some of them in other areas of the FedEx corporation.
It’s likely that most of the closures will be staggered over the coming months, as the company assesses the matter on a store-by-store basis.
Read MoreU.S Postmaster General kicks off year-long conservation campaign
Postmaster General John Potter launched a year-long campaign to increase awareness and create results for energy conservation. Potter called on employees, suppliers and partners in the mailing industry to increase efforts to “go green.” His statements came during a special “unplugged” event at Postal Service corporate headquarters, recognizing October as National Energy Awareness Month.
The Postal Service has a stated goal of reducing energy use 30 percent by 2015, he said, a further demonstration of the organization’s commitment to environmental stewardship. Scheduled capital investments will be made annually in energy conservation measures, primarily for lighting and HVAC upgrades.
A national energy management plan is being reviewed by Postal Service leadership, identifying goals and standards for energy reduction and consumption for facility energy management, fleet management, fuel use and energy consumption.
CEO Fred Smith promises bright future for FedEx, Memphis
FedEx Chief Executive Frederick W. Smith exuded optimism Monday in his USD 40 billion company’s future and Memphis’ place at its epicenter.
The Chairman, President and CEO said it would be hard for FedEx not to double in size as the company strengthens connections to emerging economies from Asia to Brazil.
Smith spoke after an annual meeting at The Peabody in which shareholders torpedoed proposals that would have split his duties and required nonbinding referendums on executive pay.
The proposals advocated by International Brotherhood of Teamsters General Fund and spokesman Louis Malizia won slightly more votes than last year, but failed by a 2-1 margin. Results were announced to an audience of about 150.
The votes came after Smith reaffirmed the company’s position that FedEx Ground drivers are independent contractors, not employees, as Teamsters assert. A class-action lawsuit is pending.
With 33,000 employees in the Memphis area, FedEx is the city and Tennessee’s largest private employer. Its superhub makes Memphis International Airport the world’s largest volume cargo airport.
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