Why the supply chain matters and how FedEx keeps it moving
In today’s hyper-connected global economy, the supply chain is more than just a logistical framework – it’s the lifeblood of commerce. From sourcing raw materials to delivering finished goods, the seamless movement of products across borders and industries is what keeps businesses competitive. The efficiency and resilience of supply chains directly influence business performance, customer satisfaction, and economic stability.
The supply chain: a strategic imperative
A modern supply chain spans continents and industries, encompassing procurement, manufacturing, warehousing, transportation, and final delivery. Its performance affects everything from cost control and speed to market, to brand reputation and customer loyalty.
In 2025, global logistics costs account for 11 percent of global GDP, and it’s reported that 75 percent of businesses currently experience supply chain disruptions on an annual basis. This is often due to geopolitical tensions, natural disasters, or cyber threats – highlighting the need for more resilient, agile systems that can adapt quickly.
Digital transformation is at the forefront of this evolution. Today, 94 percent of supply chain professionals consider digitalization as an essential means for improving efficiency and resilience. Technologies such as artificial intelligence (AI) and the Internet of Things (IoT) are driving this shift – AI adoption has boosted efficiency by 35 percent, while IoT adoption is growing at 25 percent annually, enhancing real-time tracking and operational visibility.
Logistics providers: enablers of global trade
Today’s logistics providers are no longer just carriers – they are strategic partners in global commerce. They offer integrated solutions that include transportation, warehousing, customs brokerage, and supply chain consulting. Their global reach, combined with local expertise, enables businesses to scale internationally while remaining responsive to regional needs.
FedEx has evolved far beyond its origins as an overnight shipping company. With operations in over 220 countries and territories, FedEx moves more than $2 trillion in goods annually, serving over three million shippers and 255 million recipients. This scale provides not only unmatched access but also deep insights into the flow of commerce.
What began as a revolutionary overnight delivery service has evolved into a global logistics and technology powerhouse. Today, FedEx is transforming from a supply chain company into a supply chain technology company – leveraging data, automation, and AI to make supply chains smarter for everyone.
Contributions of FedEx to the supply chain:
Global reach with local expertise: FedEx’s expansive network ensures that goods can move swiftly and securely across borders, supported by a deep knowledge of local regulations and customs procedures.
Technology-driven visibility: Through advanced tracking systems and real-time data analytics, FedEx provides end-to-end visibility. This aligns with the broader industry trend, where 83 percent of organizations are increasing transparency to meet consumer demand for ethical and sustainable practices.
Sustainability initiatives: To deliver on its sustainability initiatives, FedEx is investing in electric vehicles, carbon-neutral shipping options, and more efficient routing technologies to reduce its environmental footprint. The company is committed to carbon-neutral operations by 2040 and to providing a safe and inclusive working environment for its team members.
Crisis response and resilience: Whether it’s delivering critical medical supplies during a pandemic or rerouting shipments during natural disasters, FedEx has demonstrated an unmatched ability to adapt and respond under pressure.
Integrated European network: FedEx’s European road network is one of the largest and fastest on the continent, offering competitive transit times and flexible pricing. In tighter economic conditions, this allows businesses to choose between urgent air transport and cost-effective road options.
Policy advocacy: FedEx actively advocates for policies that create the best conditions for businesses to trade and flourish in Europe and around the world.
Facilitating trade through change
Over the past five years, the world has become more complex. Supply chains have been strained. Globalized trading systems have been challenged. The future is uncertain. But FedEx’s purpose has never been clearer: to be the resilient, reliable, and flexible logistics partner businesses need to navigate this new world.
Facilitating trade through change has been FedEx’s legacy for over 50 years, and it remains its purpose moving forward. The company’s integrated European network and the portfolio it unlocks provide the reliability and flexibility for businesses to flourish and to manage their own customers through change.
FedEx’s connection into the largest air cargo network in the world – combined with the expertise and technology that underpins it – means the company is primed to support businesses of all sizes in achieving their ambitions, whatever the future holds.
Looking ahead
As supply chains become more digital, decentralized, and customer-centric, the role of logistics providers such as FedEx will only grow in importance. Logistics already provides £170 billion annually and employs over eight percent of the UK’s workforce, acting as a vital enabler of commerce, innovation, and productivity. It is therefore essential to ensure that existing infrastructure and capabilities are resilient and space is made by regulators and governmental stakeholders, to enable innovation at scale and deliver under pressure in an increasingly complex commerce environment.
Digitization of the supply chain is the long-term trend to watch. Automation and AI are particularly exciting elements of this trend, which are proving to be particularly prominent in the UK context, where labor shortages and rising e-commerce volumes demand smarter, more efficient operations. Predictive analytics, robotic process automation (RPA), and machine learning are helping UK logistics firms forecast demand, reduce waste, and maintain high levels of service in a volatile market.
FedEx is leveraging its unmatched physical network, along with AI powered decision making to redefine and offer smarter, faster and greener solutions for customers. For instance, FedEx’s SenseAware and Surround platforms use sensor-based logistics and AI modelling to enhance shipment intelligence, offering greater transparency, better risk management, and faster interventions.
Recent UK investments in hub automation and data integration are enabling businesses of all sizes to respond more flexibly to supply chain disruptions – an essential advantage in today’s unpredictable environment. But, to secure the UK’s future as a logistics leader, policymakers must recognize the sector not just as an operational necessity but as a critical growth enabler. Incentivizing investment in AI, automation, and infrastructure will be key to ensuring global competitiveness.
In the UK, investments in predictive logistics, AI-driven forecasting, and automated parcel sortation are laying the foundation for a smarter, more resilient logistics ecosystem. With each touchpoint in the FedEx supply chain being examined for opportunities for stronger collaboration, greater efficiency, and smarter solutions. The company is empowering customers to be smarter with insights that drive internal optimization and improve customer experience.
In a world where the only constant is change, FedEx remains a steady force – delivering not just packages, but the promise of continuity, reliability, and progress.
Rob Peto
Rob Peto is Vice President of Operations at FedEx. Connecting people with goods, services and ideas creates opportunities and improves lives. FedEx believes that a connected world is a better world, and that belief guides everything the company does.