Source: Fortune
Summary
FedEx Freight CEO John Smith believes the company’s spin-off from FedEx will allow it to reach its next stage of growth. The company generates $9 billion in annual revenue and operates one of the largest less-than-truckload networks in North America. Smith says the separation will give FedEx Freight control over capital allocation, technology investments, and sales organization, allowing it to modernize technology, build a dedicated sales force, and expand in healthcare and small-business customers. The company will also use AI and machine learning to improve network performance.
Our Reading
The numbers tell one story.
FedEx Freight’s spin-off from FedEx is a bid for independence and control. CEO John Smith wants to modernize technology, build a dedicated sales force, and expand in healthcare and small-business customers. The company will use AI and machine learning to improve network performance. The separation highlights a question many leaders confront: When does the structure that helped build a business become the very thing holding it back?
Independence gives FedEx Freight the freedom to pursue priorities without competing against the needs of a much larger parcel operation.
Author: Evan Null
