FedEx Uses Data and Digital Solutions to Navigate Tariffs

FedEx found that its data and digital platform-based solutions helped the company and its customers navigate tariffs and changing trade policies in the recent quarter. The insights provided by the data collected from the global trade ecosystem positioned FedEx as a valuable partner to customers in adapting to demand trends and tariff impacts.

Responding to trade policy changes, FedEx utilized its Tricolor network optimization initiative to adjust operations. For instance, capacity on the Asia-to-Americas lane was reduced by over 35% in May compared to April, with further adjustments made throughout the month. The company's Tricolor strategy allows for faster network adaptation, enhancing efficiency and customer experience.

During the fourth quarter, FedEx saw a 1% revenue increase and an 8% rise in adjusted operating income. The company achieved its DRIVE program's $4 billion cost reduction target over two years. Additionally, the FedEx Rewards program for SMBs experienced revenue growth and higher customer loyalty compared to nonparticipants.

CEO Raj Subramaniam highlighted the revenue growth in the U.S. and the positive impact of the Rewards program on customer experience and loyalty.

According to the source: PYMNTS.com.