Stories of our impact
The integration of TNT – the biggest acquisition in FedEx’s history
With a broad portfolio of transportation, e-commerce and business services across the globe, FedEx is known for connecting people and possibilities around the world.
When FedEx acquired TNT in 2016, it had to make a very different kind of connection; one that would combine the world’s largest express transportation network with an unmatched European road network, bringing together complex commercial operations spanning more than 220 countries and territories. The ultimate destination will be a necessary transformation, resulting in one combined organisation building upon the core strengths of both companies.
Travelling that far you need a co-pilot you can trust. That's why FedEx Express asked Deloitte North West Europe to help. Two years down the road, we wanted to tell you about our progress to date.
Despite being the world's largest express transportation company, FedEx Express was looking for opportunities to grow within Europe, to offer more service options to its customers and strengthen its competitive position.
TNT was a multinational player with a significant footprint in Europe, so the acquisition was a logical choice that would see FedEx gain substantial market share. FedEx and TNT coming together in 2016 was the start of a multi-year integration journey.
Deloitte has been the FedEx Express preferred partner for integration and transformation work for the past two years, thanks largely to our shared passion for delivery excellence: FedEx Express in the literal sense, and Deloitte thanks to our ability to advise from strategy through execution.
With annual revenues of $65 billion and consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 425,000 team members to remain focused on the needs of their customers and communities, safety, and the highest ethical and professional standards. FedEx team members’ dedication to the Purple Promise, a commitment to make every FedEx experience outstanding, includes managing intricate business processes needed for handling and tracking the journeys of millions upon millions of shipments.
Our support has helped shape the direction of travel for almost every aspect of the combined companies’ operations, from planning the integration of the global Sales and Customer Service teams ensuring a seamless transition for customers, to helping improve the company’s supply chain setup. We’ve also supported the global organisation design, re-defining the operating model, and looked at ways to improve efficiency of its back-office functions. Meanwhile, we’ve navigated workforce transition issues along the way in each of the countries where the companies’ structures have been integrated.
One of the major challenges facing the transportation industry is the massive amount of ‘friction’ in cross-border logistics, since different countries have different standards, regulations and terminologies. This can lead to delays and disputes, and generally puts an unwanted administrative burden on the customer.
We’re currently helping the newly combined organisation streamline customs clearance by
doing all the usual work you’d expect in combining operations, modernising processes and harmonising infrastructure.
Blockchain is helping FedEx develop a digital ‘passport’ for every consignment it handles, containing all the documentation needed for shipments to move from country to country without fuss. The benefit of blockchain is that it creates transparency for all involved parties and significantly reduces the administrative burden by lowering transaction costs, ensuring faster transaction settlements and improving customer service.
For a company that handles over 14 million shipments a day – and double that during peak season – turning to new technology to reduce the friction must surely be a necessity, not a luxury.
Significant progress has been made in the integration, and work is accelerating. As to what our client feels about having us on the journey with them, we’ll leave that to Bert Nappier, the Regional President of FedEx Express Europe and CEO of TNT: “When you talk about the biggest acquisition in the history of FedEx and one of the most noteworthy in the express transportation and logistics solutions industry, we needed a great partner, and we have one in Deloitte.”