Fedex : Fedex For The Peak Season Essay

1030 Words Mar 16th, 2016 5 Pages
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, which is roughly 90 percent of the FedEx Ground total capital expenditure in five years. During the this time period, FedEx Ground completed about 250 major capacity projects such as, new facilities, relocations and major expansions. Through 2015, FedEx invested $1.2 billion in FedEx Ground, which was capacity and automation that including over 70 major expansion projects. Enhancements to their networks have accelerated FedEx’s Ground delivery for one day to at least two-thirds of the United States. FedEx’s Ground is 27.3 percent quicker than their competition and eighty-three percent of their package deliveries are in three business days or less. Furthermore, over the last five years, FedEx’s Ground segment has planned and executed…

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