Fedex Business Analysis

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FedEx has experienced steady growth in holiday volumes since 2007. They forecasted another record holiday in 2015. FedEx expected they would move more than 290 million packages during Black Friday and Christmas Eve, which resulted in a 9 percent increase in overall year-over-year seasonal volume. FedEx also forecasted the busiest day in company history was December 15, 2015 with a forecasted 22.6 million shipments moving around the world. Their peak projections included FedEx earnings guidance for FY15 (n.d., 2016).
FedEx has taken many measures to prepare for the peak season. They continue their strategic investment in network growth and capacity. Over the last five years, FedEx Ground invest towards capacity projects was about $2.5 billion,
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Furthermore, over the last five years, FedEx’s Ground segment has planned and executed a seven-day peak season operation, including Black Friday, and plans to do so again in 2016. In 2015, the seven-day operation enabled FedEx Ground to smooth out volume spikes, work volume ahead of schedule and quickly catch up where there was a weather disruption, leading to record service. FedEx Express continues to modernize its global fleet of aircraft for enhanced reliability. Their new freighters, are 757, 767 and 777 aircraft, that are operationally more efficient and use less fuel with lower emissions (n.d., 2016). FedEx Express has added a new technology reporting system to their network called “RADAR”, which enhances delivery operations planning for improved service and efficiency. FedEx keeps a close collaboration year-round with customers around the world to gain a better understanding of their specific needs and forecast anticipated volumes during the holiday season. FedEx adds over 50,000 seasonal positions across their company such as, package handlers, helpers, drivers and support positions. Centered on their growth expectations …show more content…
FedEx Ground is looking at a place in Bethlehem, to serve as an alternative location for one of its largest mega hubs as a legal tussle complicates the original deal for building on a farm field near Lehigh Valley International Airport. The FedEx distribution center proposed a 131-acre lot at the Majestic Bethlehem Center, which already has large distribution centers. FedEx’s plans depicts a 981,000-square-foot facility and enough parking for 2,800 employees. The plans filed in Bethlehem should not be view as FedEx is deserting the Allen Township place; FedEx is seeking an alternative so the project will move forward by spring (Radzievich & Assad,

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