Source: Fortune
Summary
FedEx CEO Raj Subramaniam described the global supply chain as undergoing a major shift, calling it “reglobalization.” He cited data showing U.S. imports dropping and exports rising, with growth in Latin America, Southeast Asia, and India. Subramaniam also discussed the challenges of leading FedEx after the death of its founder, Fred Smith. The company is undergoing a multiyear transformation, including network integration, digital initiatives, and organizational changes. Subramaniam emphasized the importance of maintaining FedEx’s culture while adapting to new market conditions.
Our Reading
The numbers tell one story.
FedEx moves 18 million packages daily and handles two petabytes of data.
Subramaniam sees supply chains shifting, with growth in emerging markets.
He’s leading a major internal transformation, including network and digital changes.
Change is part of the culture, but proving sustainable growth remains a challenge.
Author: Evan Null
Global Supply Chain Shifts
FedEx CEO Raj Subramaniam has been monitoring global supply chain shifts, noting that the company’s data shows a significant change in trade patterns. The company processes 18 million packages daily and handles two petabytes of data, making it a key player in global logistics. Subramaniam described the current phase as “reglobalization,” a term he coined to explain the evolving trade dynamics.
Impact of Tariffs and Conflicts
Subramaniam highlighted how geopolitical events, such as Trump’s tariffs and the war in Iran, have influenced trade flows. U.S. imports decreased while exports increased, with growth observed in Latin America, Southeast Asia, and India. These shifts have been reflected in FedEx’s operations, which connect 3 million shippers to 225 million consumers across 220 countries and territories.
Leadership Transition
Subramaniam took over as CEO in 2022 after the death of FedEx founder Fred Smith, who had mentored him for years. The transition was described as a “whole different level” of responsibility. Subramaniam emphasized the importance of maintaining the company’s culture, which he said was a key reason he joined FedEx in the first place.
Internal Restructuring
FedEx is undergoing a multiyear transformation called “DRIVE,” which includes cost-cutting, network integration, and digital innovation. The company merged its Express and Ground networks and launched a new data product called FedEx Dataworks. Subramaniam credited the company’s culture with enabling innovation, as seen in the development of Dataworks, which started with an employee’s white paper in 2019.
Challenges and Growth
FedEx reported an 8% revenue increase to $94.7 billion in the fiscal year ending in May 2026. However, Subramaniam still faces the challenge of proving that he can expand margins through sustainable growth, not just cost-cutting. He emphasized that change has always been part of FedEx’s culture, and that the company must continue evolving to stay competitive in a shifting global landscape.
