FedEx Executive Outlines How AI And Automation Are Redefining Regional Supply Chains

Nelson Teixeira, Managing Director of Operations for FedEx in sub-Saharan Africa. Image supplied

We are seeing major shifts converge at the same time, reshaping the delivery and logistics landscape. Businesses that understand the trends early will be better equipped to adapt, protect continuity and manage costs in a more unpredictable environment.

AI and automation are enabling smarter networks and faster decisions

Artificial intelligence (AI), automation and predictive routing tools are becoming central to logistics planning. These technologies improve visibility, optimise resource use and allow faster decision-making when conditions change.

AI is no longer a behind-the-scenes efficiency tool. AI is giving us earlier warning signs of disruption and a clearer line-of-sight into network performance. It helps organisations respond faster and gives businesses more reliable information to plan around. Companies that align their inventory cycles and customer commitments to these predictive insights will operate with far more agility.

Geopolitical uncertainty is reshaping supply chains and regional hubs

Global instability continues to influence sourcing decisions, routing options, and cost structures. International corporations are diversifying supplier bases and relying more on regional hubs to manage risk.

This trend is particularly important for South African businesses that move goods across multiple borders. We are seeing more companies build flexibility into their supply chains by developing alternative routes and sourcing options. A resilient regional network can absorb shocks when international routes are disrupted, which is becoming essential in today’s trading environment.

Extreme weather is putting pressure on delivery reliability

Weather-related disruption has become more frequent, from severe storms to heat-related infrastructure strain. Parts of South Africa recently experienced one of the wettest Octobers on record, with parts of the country reporting double and triple the average rainfall. These harsh conditions challenge delivery schedules and increase the operational complexity of managing routes safely.

Extreme weather is no longer a rare event. It is something every business has to factor into its operations. The more adaptable your logistics routes are, and the faster your provider can redirect shipments, the more resilient your operations will be.

Demand for more sustainable operations is accelerating

Sustainability has moved beyond compliance. Customers across consumer and business markets are expecting more sustainable delivery options, and logistics providers are scaling up investment in fuel-efficient fleets, alternative energy solutions and carbon measurement tools.

Our goal at FedEx is to transform our entire global pickup and delivery fleet to zero-emission electric vehicles by 2040, and we have also introduced new tools and product designs to support more sustainable behaviours.

Customers want to understand the environmental impact of their shipments, and many are building sustainability metrics into procurement decisions. The FedEx Sustainability Insights Tool, for example, allows customers to access estimated CO2 equivalent emissions data for their shipments.

Sustainability has become integral to long-term competitiveness. Businesses that work with logistics partners offering more sustainable solutions will align more easily with evolving customer expectations and regulatory pressures.

While the pressures are significant, the year ahead offers opportunities for early adapters. Logistics has become a strategic function rather than a back-end cost. By planning proactively, reviewing risks regularly, and collaborating closely with logistics partners, businesses can improve reliability and strengthen their competitive position in 2026.