January 16, 2018

FedEx re-aligns specialized logistics, e-commerce units

Move to leverage combined capabilities of fast-growing segments.

By DC Velocity Staff

Transport and logistics giant FedEx Corp. said today it has restructured its specialized logistics and e-commerce units to fall under its FedEx Trade Networks Inc. operations, a move designed to devote more organizational resources to fast-growing segments within the Memphis-based company.

The move will affect FedEx's Custom Critical rush-delivery operations, FedEx Supply Chain, FedEx Trade Networks Transport & Brokerage, and FedEx Cross-Border, which manages what is expected in coming years to become a booming business in cross-border e-commerce services. The realigned entity will be run by Richard W. Smith, CEO of FedEx Trade Networks.

FedEx also created a company called "FedEx Forward Depots" that will oversee Critical Inventory and Service Parts Logistics, 3-D Printing, Repair Center, and the FedEx Packaging Lab, the company said.

In a statement, FedEx President and CEO David J. Bronczek said the realignment will "improve our ability to leverage the unique capabilities" of FedEx's specialty companies. Smith added in the statement that the move will "allow us to offer customers the full power" of the company's portfolio in a more convenient and intuitive manner.

The company also said that FedEx Supply Chain's financial results, which are currently incorporated with those of the FedEx Ground business unit, and FedEx Custom Critical results, currently reported with FedEx Freight, the company's less-than-truckload (LTL) unit, will be reported with FedEx Trade Networks under the FedEx Express air and international segment, effective March 1. FedEx Ground is the company's ground-delivery unit, and moves much of the company's e-commerce deliveries.

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