EXCLUSIVE: FedEx Philippines’ Maribeth Espinosa

In an era marked by geopolitical uncertainties and supply chain disruptions, the logistics sector has become a critical backbone for global trade and commerce.

FedEx, a leader in the logistics industry, stands at the forefront, leveraging its core services and values to address these challenges and drive recovery and growth in the Philippines.

Here is our exclusive interview with Maribeth Espinosa, managing director of FedEx Express Philippines.

What was your journey like leading to becoming the first Filipino and female Managing Director of FedEx Philippines?

B: It’s actually been a very colorful one. I am a chemist by profession, but when I joined FedEx as a frontline employee, I started as a dangerous goods specialist.

From there, I was very driven to move into management so I pursued further studies by taking graduate school for business management.

I eventually became the first person to be promoted from within FedEx at the Subic hub. Later, after gaining experience in Subic hub operations, I moved into customer experience for 14 years, followed by six years in customer service covering the Philippines and Indonesia.

Then, I ventured into clearance operations, covering not just Asia Pacific countries like Singapore, Japan, Korea, Taiwan, but also European countries like the UK and France, as well as Canada and parts of our US group.

After that, I accepted the position of Managing Director for the Philippine district, overseeing operations for FedEx Philippines.

It was a journey filled with many opportunities for me to excel and to help others achieve their goals as well.

When you stepped into the role of Managing Director, what was on your checklist? What were the first things that you had to address within FedEx Philippines?

B: Within FedEx Philippines, I was already familiar with the market since, as a Senior Customer Service Manager, I was part of the commercial team. It was easier for me to understand because I was also on the board of the different commercial and operations teams for FedEx.

However, I wasn’t as in tune with the current operations because there were many changes. So, my first priority was to understand the operations better and get closer to the people.

I believe one of the core values of FedEx is to take care of our people, so I focused on understanding them.

This role is strategic, so we depend on the talent and skills of our senior management and leadership teams in the Philippines. It was vital for me to listen to them first before making any decisions, as I didn’t want to micromanage.

I have a very competent leadership team, so I relied on their strengths while focusing on the strategic part of the business together with the leadership team.

When you started implementing your strategy and plans, which areas received the most significant investment, and why did you prioritize those?

B: Investments were primarily focused on understanding the needs of our customers in the Philippines. Strategically, we wanted to identify opportunities in the market and set efficiencies in our operations.

FedEx is highly invested in advanced technology and leveraging artificial intelligence.

We looked not just at modernizing our facilities but also at investing in infrastructure that complements our technology, adding value for our customers while reducing costs.

This approach aims to keep our shareholders happy with the profitability, which we also use to invest in our facilities and our people.

What can the industry learn from how FedEx manages these complex operations?

B: We invest heavily in technology and digitalizing our logistical solutions for customers. By democratizing data through AI and other systems, we ensure learning occurs with each iteration. This helps create real-time intelligence for our operations.

We continuously seek solutions that are flexible and intelligent, aiming to build a smarter supply chain. An example is our 17,000-square-meter facility at Clark Gateway, equipped with state-of-the-art technology to process 9,000 parcels.

This demonstrates our commitment to operational efficiency and our ability to connect customers to over 220 territories and countries worldwide.

We analyze every market within our global FedEx network to find opportunities to expand and enhance capacity, allowing businesses like those in the Philippines to enter international markets more effectively.

Now that FedEx is entering the information logistics area, providing real-time data to customers, when do you think this service will be available in the Philippines?

B: I can’t give specifics on the timeline but I can share that the FedEx corporation is exploring various automated tools to enhance our customers’ capabilities in the Philippines to expand internationally. We’ve established the FedEx Dataworks group, a centralized data platform that creates solutions for small and medium enterprises in the Philippines, enabling them to grow at the speed of commerce.

Will implementing this kind of technology require significant additional investment from FedEx Philippines?

B: Not necessarily. At FedEx, tools and technologies are developed on a global scale. We create solutions that apply to most countries, but the timing for implementation in specific markets is based on demand and strategic need.

We operate as a unified FedEx company and always look for opportunities to serve the Philippine market effectively.

As FedEx Philippines drives growth in the country, can you share some initiatives related to carbon neutrality?

B: Absolutely. FedEx aims to achieve carbon-neutral operations by 2040. We’ve allocated about $2 billion for this long-term goal, focusing on innovations like carbon capture.

In the Philippines, we’re supporting sustainability efforts, such as using solar-powered ground support equipment at the Clark Gateway and upcycling old uniforms into gifts.

We’re also involved in community initiatives like beach cleanups and reforestation projects. Our packaging solutions for customers are also part of our broader effort to support sustainability.

Can you provide any updates on the expansion of the Clark Gateway, which was announced last month?

B: While I can’t share specific details at this moment, our commitment to enhancing FedEx’s presence in the Philippines remains strong. The current facility at Clark, which I mentioned earlier, serves Filipino exporters and companies, and we’re continually looking to maximize and optimize its operations.

Given the growth of e-commerce in the Philippines, how does FedEx plan to assist MSMEs, particularly regarding price surcharges and cost management?

B: We partner with government institutions like the Bureau of Customs and the Department of Trade and Industry to offer masterclasses for MSMEs.

These sessions provide them with the tools and knowledge needed to navigate international markets, understand export requirements, and price their products competitively.

We also offer expertise in logistics and supply chain management to help them transition smoothly from domestic to global markets.

How do you use data from these MSMEs to enhance operational efficiency?

B: We use tools like FedEx Ship Manager to assist small businesses and e-commerce customers with online transactions.

By leveraging AI and machine learning, we gain insights from repeated transactions to improve our services and help these businesses remain competitive globally.

Are there any new FedEx product offerings for the Philippines?

B: Yes, we offer a range of products, including FedEx Freight and FedEx Ship Manager, which cater to both B2B and small businesses.

These products provide robust solutions for cross-border shipping, warehousing, and even hazardous materials handling. We’re always listening to customer needs and are open to customizing solutions for them.

With the reliance on cross-border shipments, does FedEx Philippines plan to expand its localized warehouses?

B: We are currently offering some ancillary services like simple warehousing in partnership with vendors. Our focus remains on trade, especially air cargo, which offers significant opportunities. While we are primarily a freight business, warehousing is an available service based on customer needs.

Can you share some of your long-term strategic plans for FedEx Philippines?

B: At this point, I can’t disclose specific operational plans, but I can assure you that we are forward-looking and continuously researching ways to stay ahead of the changing needs of our customers as long as it’s within legal compliance.