FedEx & UPS guide: How companies got hit by the supply chain crisis

A tale of four companies from different industry verticals told the story of how companies from different verticals get affected by the supply chain crisis.

Five employers with 14,494 employees in the Washington region were caught unprepared as cost-cutting deals with goods by vendors disrupted the labor supply. Here is a guide to those companies and how they fared.

FedEx remains intact — by moving on pricing strategy | Best way to cope with the supply chain crisis | Value of predictability versus flexibility

New supply chain routes and drop points are expensive.

FedEx’s approach differs from that of UPS, which imposed new rates in November last year to control excess capacity. The package delivery company deployed more temporary employees to load and unload packages at facility gateways to create capacity and earn a shipping rate premium for volume

The move resulted in a year-over-year drop in the number of packages collected at FedEx’s delivery hubs as temporary staff reduced the capacity of FedEx Freight.

FedEx has increased prices in October last year, anticipating that tariffs would raise shipping costs. The quarter would mark the third consecutive year of higher shipping rates, and FedEx expects to pass on more increases than its rivals in the years ahead. In response, FedEx deployed employees to react more quickly to the change.

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