FedEx Long-Term Commitment to Sustainability Gets a Boost: Emissions Reduction Goal Increased Fifty Percent

| August 19, 2016

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MEMPHIS, Tenn., August 20, 2012—In 2008, FedEx Corp. (NYSE: FDX) announced it would seek to reduce carbon emissions intensity from its FedEx Express aircraft and improve the fuel efficiency of its FedEx Express vehicle fleet by 20 percent by 2020, as compared with its 2005 performance.

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Kenco Group

Kenco provides integrated logistics solutions that include distribution and fulfillment, comprehensive transportation management, material handling services, real estate management and information technology—all engineered for operational excellence. For over 60 years, Kenco has built lasting customer relationships because it is the 3PL that listens, learns and adapts. Privately-held and financially strong, Kenco’s focus is on common sense solutions that drive uncommon value. Find out more at www.kencogroup.com.

OTHER ARTICLES

Can blockchain create a sustainable supply chain?

Article | March 6, 2020

Was the cobalt in your phone dug up by a child miner or the cotton for your clothes farmed by slave labour? How much CO2 was emitted or plastic wasted manufacturing the cars we drive? Impossible questions for the end consumer, and deeply challenging for producers themselves, but new technology could finally be providing sustainable supply chain solutions.

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WHAT YOU NEED TO KNOW ABOUT CORONAVIRUS SUPPLY CHAIN DISRUPTION

Article | February 21, 2020

Countries globally are working tirelessly to enforce containment measures in an effort to halt the Coronavirus' path of destruction. However, these measures may impose significant consequences on global supply networks. Given China’s position in the global economy, the Coronavirus, COVID-19 , has the potential to disrupt sourcing and manufacturing processes significantly.

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STRATEGIES TO MINIMIZE THE IMPACT OF CORONAVIRUS ON SUPPLY CHAINS

Article | March 16, 2020

Manufacturers across the globe are struggling to address supply chain disruptions caused due to COVID-19 outbreak. Commonly called as coronavirus, is impacting supply chains in terms of parts, labor, and government restrictions. Quarantined workers and shortages of components have crimped the availability of goods from different manufacturing locations, primarily China. The severity of disruptions is expected to increase after the first quarter of this year. Lead times have doubled, and that shortage is compounded by the shortage of air and ocean freight options to move products for the majority of US businesses due to coronavirus impact on supply chains.

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3 Ways to Benchmark to Boost Supply Chain Performance

Article | April 20, 2021

You might be wondering what the benefits are of benchmarking. Well, imagine you are training for a 100 metre sprint in your district. What would be the key number, or metric that you would need to know? It would, of course, be what the winning time was when this race was last run in your district. Without that information, you don’t know what you’re trying to target. It would be impossible to know if you’ll have any chance at all of winning the race. It’s exactly the same in business. If, for example, you are concerned about the pick rates in your warehouse, or your transport costs, or your inventory accuracy, benchmarking can help you because it can show you exactly where your performance is compared to others in your industry. A few years ago, I was working with an automotive parts business. They had a little issue with their picking productivity in the warehouse. They wondered how good it was, whether they could improve it. They actually thought it was okay. We looked at the figures and compared them with other businesses. This helped us realise that their picking productivity should be three times better than it was. And believe it or not, over a few months they did begin to improve their productivity. Why? Because benchmarking opened their eyes to the fact that they were at a level quite far below others in the industry. That’s the beauty of benchmarking. Until you know what others are doing, you can’t be sure how good your performance is. If you’ve never tried benchmarking, there are three ways you could do it. 1. Informal Benchmarking This exercise would involve you measuring particular functions or aspects of your business and comparing that against other parts of your business. Let’s say you have a warehouse operating in one city and another operating in another city. You might start to measure the same metrics and see which one is performing better. You might know other people in the industry who are also operating warehouses so you might agree to share some data with them. This is probably the easiest way to start off, but it has some downsides: You’re only measuring against a very small sample size. If all of you in the pool are not that good, how would you know what good is? You have to make sure that the businesses are similar and you are measuring things in exactly the same way. It’s very important in benchmarking to have a standard way of applying the metric. 2. Formal Benchmarking This can work for much larger businesses. Perhaps you have operations in many different countries. You could agree a formal structure for how you are going to measure performance. You could do monthly or quarterly benchmarks with all the parts of your international organisation. You could learn from each other and share best practice. This method is okay but you’re not getting access to a very large pool of results to measure yourself against. You will find that companies are very reluctant to give out benchmarking data. You might also be operating in an environment where the performance is quite low right across the business. 3. Hire a Professional Benchmarking Firm This is the ultimate way to do it, although there are not a lot of professional benchmarking firms such as ours around. If you do manage to find one, you will quickly realise that there are significant benefits to be had by bringing in the professionals: The metrics are put together in exactly the same way: When we do a benchmarking exercise for our consulting clients, we go through a very robust data-gathering process and then make sure all the costs, for example, are in the same buckets as everyone else’s in the database. You gain access to a big pool of results: Professionals have measured hundreds, if not thousands, of companies. This enables you to say, ‘Our company is this size, it operates in this industry, these are the characteristics of our supply chain, who else in that pool of results is like us? We want to be measured against them.” It’s no good measuring the performance of a grocery retailer, for example, against an industrial product supplier. They have different supply chains. You need to be measuring like with like.

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Spotlight

Kenco Group

Kenco provides integrated logistics solutions that include distribution and fulfillment, comprehensive transportation management, material handling services, real estate management and information technology—all engineered for operational excellence. For over 60 years, Kenco has built lasting customer relationships because it is the 3PL that listens, learns and adapts. Privately-held and financially strong, Kenco’s focus is on common sense solutions that drive uncommon value. Find out more at www.kencogroup.com.

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