The supply-chain savant: How FedEx CEO Raj Subramaniam leads through ‘reglobalization’
Tariffs, conflict, and shifting trade routes are upending the flow of goods around the world. Raj Subramaniam is betting FedEx can use the disruption to its advantage.
When the global economy faces uncertainty, few individuals are in a better position to interpret the signs than FedEx CEO Raj Subramaniam. His company manages approximately 18 million packages worldwide daily, processing two petabytes of data each day. This operation connects 3 million shippers to 225 million consumers across 220 countries and territories.
Subramaniam stated in June 2025 to Fortune's Titans podcast that "We are the referendum on global supply chains." He highlighted that he has never witnessed such a drastic change in a single year like the one observed in 2025. FedEx's real-time data reveals the geopolitical shifts triggered by President Donald Trump's tariffs and the ongoing war in Iran.
This resulted in a decrease in U.S. imports and an increase in U.S. exports. Rapid growth was seen in Latin America, Southeast Asia, and India. Subramaniam has introduced the term "reglobalization" to describe these evolving supply-chain patterns, as "the supply-chain patterns are changing, and we are moving from one equilibrium state to another."
Within the $95 billion company, FedEx (No. 50 on the Fortune 500), Subramaniam has navigated another shift. He became the second CEO of FedEx, founded by Fred Smith, in 2022 following Smith's passing at age 80. Subramaniam acknowledged that leading a company after such a legendary founder is a privilege. He credited Smith for grooming him for the top position over the years.
However, transitioning to CEO proved challenging, as he had to say no to various demands to focus on what truly mattered. Subramaniam set his own CEO job description and key performance indicators (KPIs), emphasizing the preservation of FedEx's culture, which was built by Smith. As part of FedEx's multiyear transition, dubbed "DRIVE," Subramaniam has overseen three concurrent restructurings: a network transformation, a digital transformation, and an organizational revamp.
The data-driven culture at FedEx has also enabled innovations such as FedEx Dataworks, which turns the company's proprietary data into a valuable product. Despite revenue growth of 8% to $94.7 billion in the fiscal year ending in May, Subramaniam remains focused on expanding FedEx's margins through sustainable growth. He attributes this challenge to the company's culture of embracing change, as stated by Subramaniam: "If you don't like change, you're going to hate extinction."
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