Artwork

Content provided by Kelly Barner and Art of Procurement. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Kelly Barner and Art of Procurement or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
Player FM - Podcast App
Go offline with the Player FM app!

Will FedEx Freight hit the open road?

22:43
 
Share
 

Manage episode 431838847 series 3317274
Content provided by Kelly Barner and Art of Procurement. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Kelly Barner and Art of Procurement or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

On June 26th, The Wall Street Journal reported that FedEx plans to spin off their freight division - and the most interesting part is why.

FedEx Freight is the less-than-truckload (LTL) division of the company. It is the most profitable division, with a recent operating margin over 20 percent, compared to 11.8 percent for FedEx Ground and 2 percent for FedEx Express.

The company has realized that the division is so successful it will generate more shareholder value on its own. With estimated valuations between $30 and 50 Billion, it is too big to be bought, but too small of a division of FedEx to stay. Pending an internal review scheduled to be complete later this year, FedEx Freight is likely to have a future as a standalone company.

In this episode of the Art of Supply podcast, Kelly Barner covers this story in the larger context of supply chain operations, investment, and profitability:

  • Providing an overview of the current LTL landscape
  • Comparing FedEx Freight’s performance with UPS Freight, which the company spun off in 2021
  • Considering what this move may mean for the supply chain as a whole and for procurement professionals tasked with managing LTL spend

Links:

  continue reading

125 episodes

Artwork
iconShare
 
Manage episode 431838847 series 3317274
Content provided by Kelly Barner and Art of Procurement. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Kelly Barner and Art of Procurement or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

On June 26th, The Wall Street Journal reported that FedEx plans to spin off their freight division - and the most interesting part is why.

FedEx Freight is the less-than-truckload (LTL) division of the company. It is the most profitable division, with a recent operating margin over 20 percent, compared to 11.8 percent for FedEx Ground and 2 percent for FedEx Express.

The company has realized that the division is so successful it will generate more shareholder value on its own. With estimated valuations between $30 and 50 Billion, it is too big to be bought, but too small of a division of FedEx to stay. Pending an internal review scheduled to be complete later this year, FedEx Freight is likely to have a future as a standalone company.

In this episode of the Art of Supply podcast, Kelly Barner covers this story in the larger context of supply chain operations, investment, and profitability:

  • Providing an overview of the current LTL landscape
  • Comparing FedEx Freight’s performance with UPS Freight, which the company spun off in 2021
  • Considering what this move may mean for the supply chain as a whole and for procurement professionals tasked with managing LTL spend

Links:

  continue reading

125 episodes

Alle episoder

×
 
Loading …

Welcome to Player FM!

Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.

 

Quick Reference Guide