Question

Highlight the Kuehne+Nagel and Deutsche Post DHL Group Integrated Logistics Services provider global market dominance by
identifying each networks top 5 markets and top 5 services. Highlight each network’s
reach based on economic of scale and distance covered. Select your preference with reasons to support?

Answer 1

Answer-
UPS (United Parcel Service), Inc. and FDX Corp. are the top two leading distributors of services in the eye of the public, and key rivals to one another. However, the 2 logistic companies in their market and services are very different from those who follow them intently. UPS and FedEx were both leaders in the delivery of express package services.
Explanation:
The top 5 markets of Fed x based upon economies of scale and distance covered are as follows:
1. FedEx Express accounts for 52 percent of revenues and offers regional (mostly aerial) information and transport networks to supply priority packages, envelopes, and cargo to over 220 countries.
2. FedEx Ground, which accounts for 33 percent of revenue, offers express package and envelope ground distribution across Canada and the U.S.
3. FedEx cargo accounts for 12 percent of sales and is a lower-than-truck cargo company in North America.
4. FedEx's market accounts for 3 percent of revenue and contains centralized functions to assist the above 3 elements, like customer service. The retail operations are a leading paper printing services company with a regional network of almost 1,800 locations.
5. In Japan and Canada, nearly 4 million express shipments are delivered every night via its entire global delivery network.
The top 5 markets of UPS based upon economies of scale and distance covered are as follows:
1. UPS holds the market worldwide for its domestic ground parcel delivery.
2. UPS delivers the parcels on a regular basis worldwide except on Sunday. UPS delivered approximately 21.9 million parcels and documents every day in 2019 amounting to 5.5 billion, in the US, Canada, Japan, and India.
3. The UPS Shop is a relatively small retail establishment, owned individually by franchisees. This serves small and medium enterprises business customers mainly for their small parcel delivery requirements, plus other postal and delivery costs-related services.
4. The continuing growth of e-commerce has played perfectly into UPS's core small-parcel delivery business. As people are making purchases online on a regular basis, Internet vendors are increasingly being pressured into making the delivery of their offline goods to clients on time.
5. UPS handles all its businesses, including air, land, international, domestic, commercial, and residential, via a single network of pickups and deliveries. The single network framework has enabled UPS to acquire key advantages by optimizing network capacity and the use of assets.
The top 5 services offered by UPS and FedEx are as follows:
1. Blockchain Technology: The advent of blockchain technologies has resulted in digital contracts insecure for UPS and FedEx. Using this upcoming technology helps the numerous logistics industry stakeholders like manufacturers, suppliers, consumers, auditors, warehouse operators, and others to build a consistent and effective system for reporting transactions, monitoring inventory, and handling all logistics documents.
2. Digitalization: With digitalization shaping nearly all industries around the globe, UPS and FedEx are no exception. Increasing digital literacy and public awareness of the utilization of various online platforms to make custom buying decisions, the logistics company's digitalization has started to emerge as an opportunity for maximum traction.
3. Effective Last-Mile deliveries: It has helped UPS and FedEx in delivering goods to the customers within the same day of order. This has helped these two companies to gain a competitive edge in the domestic market.
4. Integration of smart glasses and drones: The increasing integration of smart glasses and drones in UPS and FedEx has enhanced the flexibility and agility of delivery, which in turn has impacted the development of the last mile deliveries market during the forecast period.
5. Expertise: UPS excels in delivery services to domestic ground. However, FedEx excels in international air freight which is time-sensitive.