Posted July 13, 2019 12:02:51Fedex will increase the cost of the logistics it uses to deliver goods to customers in Japan, and will cut the costs of its business by more than $6 million over three years, according to an internal document obtained by ESPN.
The new costs include increased expenses related to “customer service, tracking, and security.”
Fedex’s total costs will be $22 million per year, or $3.4 million per employee, which is down from the $35 million per person, or roughly $6.5 million, that it spent on that area in 2019, according the document.
The changes will also affect the company’s Japanese-based logistics unit, which will reduce the cost per tonne by $4, or 14.6%, by 2022, the document said.
The costs will decrease from $23.6 million to $21.9 million per ton, according, the documents show.
The company will also reduce the total cost of logistics by about $3 million per worker over the same time period.
The savings come as Japan is grappling with a slowing economy, the world’s biggest exporter of raw materials, food, medicine, and technology.
Japan’s economy shrank at an annual rate of 0.2% in the second quarter of 2019, and the country is expected to shrink another 0.3% this year.
The economy is expected 0.4% this quarter, the weakest performance in almost three years.