...FedEx: The World on Time Shipping, Logistics, and Supply Chain Management Indiana Wesleyan University Facilitator FedEx: The World On Time History of FedEx Today FedEx Corporation is the premier provider of shipping and information services worldwide. Headquartered in Memphis, Tennessee, the company functions under the motto "operate independently, compete collectively and manage collaboratively."(FedEx.com, 2011) By operating independently, each company can focus exclusively on delivering the best service for its specific market. In 1965, Yale University undergraduate Frederick W. Smith wrote a term paper about the passenger route systems used by most airfreight shippers, which he viewed as economically inadequate. (FedEx.com, 2011) Smith wrote of the need for shippers to have a system designed specifically for airfreight that could accommodate time-sensitive shipments such as medicines, computer parts and electronics. In August of 1971 following a stint in the military, Smith bought controlling interest in Arkansas Aviation Sales, located in Little Rock, Arkansas. Smith identified the tremendous difficulty in getting packages and other airfreight delivered within one to two days. This dilemma motivated him to do the necessary research for resolving the inefficient distribution system. Thus, the idea for Federal Express was born: a company that revolutionized global business practices and now defines speed and reliability. Federal Express was so-named due to the...
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...fourteen small jets at its disposal, FedEx today has more than 560 aircrafts – making them the largest all-cargo air fleet in the world. The total daily lift capacity of their fleet exceeds 26.5 million pounds. Within 24 hours it travels approximately 500,000 miles. With the 2.5 million miles the FedEx Express couriers log a day; it is equivalent to 100 trips around the earth. A need that already has been identified rarely provides companies with big business opportunities. The greatest opportunities arise when you detect a completely new need that your customers didn’t even recognize themselves until you offered a solution to them. That is the success story of FedEx with its overnight delivery system. The company was named “Federal Express” because of the intended associations with the word “Federal” since it expressed an interest in nationwide economic activity. Another trace to the name is the proposed contract with the Federal Reserve Bank, which the company hoped to attain at that time. Although the proposal was denied, the name “Federal Express” was chosen since Smith believed it was a particularly good one for their purposes. It draws public attention to the business and facilitates name recognition. While the ability to identify an unidentified need provides a great business opportunity, it tends to remain useless if a company fails to come up with a new and innovative way of meeting it. The delivery of a new service can be quite tricky. FedEx solved it brilliantly by its hub-and-spoke...
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...Six Components of FedEx Corporation Supply Chain Six Components of FedEx Corporation Supply Chain This project paper will describe six components of the FedEx’s supply chain. Also this paper will examine the potential problems related to each of the components and describe and explain the approaches of the organization for solving the problems. Let’s start with the background of the company. FedEx is led by Corporation, that provides strategic direction and financial reporting to the operating companies which compete under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Home Delivery, FedEx Office, FedEx Supply Chain Solutions and FedEx Services these are six supply chain of the main FedEx brand. FedEx started in 1971, when its founder Frederick W. Smith had idea for airfreight system that would facilitate quick overnight delivery of documents directly to customers. To make his ideas work, Smith decided to start his own company. In March 1973, FedEx moved its airline operations to Memphis, Tennessee, US. On April 1, 1973, FedEx started full time operations with a network, opened up in 25 cities in the US. This had begun the air/ground express industry. FedEx Express is a cargo airline based in Memphis, Tennessee. In terms of freight tons flown it is the largest in the world and the world's fourth largest in terms of fleet size. It is one of the supply chain segments of FedEx Corporation. It delivers packages and freight to more than 375 destinations in...
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...transporting goods and services. The businesses that can leverage technological advances are in a position to garner market share and add value to their shareholders. FedEx has become a world leader in the parcel delivery business. The name FedEx evokes thoughts of getting packages to customers the next day. FedEx now is used as a verb to tell customers that a shipment will be sent so that it is received the next day. Delivering a product on-schedule is the result of multiple business processes working seamlessly to create a Value Chain that yields a firm greater profit over costs (Dess, Lumpkin, & Eisner, 2007). A primary activity of the Value Chain is Supply Chain Management (SCM). Supply Chain Management is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer ((2006). Supply Chain Management Retrieved April 24, 2007, from http://searchcio.techtarget.com/sDefinition/0,,sid19_gci214546,00.html ) Running the full spectrum of products and services, companies rely on sound SCM procedures and techniques to move goods expediently, i.e. Levi promising next day delivery of Dockers to a retail store, or the Department of Defense shipping needed equipment to front line soldiers in the Global War on Terrorism. FedEx is in the business of providing businesses the ability to manage their supply...
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...university | Success Story of FedEx | Essay | | | 4/27/2014 | | Success story of FedEx Ordering things online or over the phone is a common procedure today. Companies use different shipping companies to deliver items fast and safe. Postal office is one of the cheapest ways to ship packages and parcels, but with the Postal office you can’t always truck it. The Unites States Postal Services (USPS) not always provide customers with trucking numbers but it usually takes more time for receiver to get it. The company which achieve it success in shipping all kinds of freights, packages and parcels is FedEx. FedEx is known for its great rates, on time delivery and detailed trucking information. Below I would be talking about these great qualities of FedEx and why many businesses use their services. FedEx services are being used because they are so massive that they have made the correct business moves that allow them to give a price that most companies can’t complete with. Another area that companies like is the flexibility in the pricing that is catered to each individual company. What I mean by this is FedEx looks at company shipping history and gives them pricing discounts on the amount of volume a company ships. They also tailor it to which method the company ships more of; weather is overnight air freight or standard four day deliver ground. For example, the company I work for uses FedEx services almost every day. We ship via FedEx all freight payments we make...
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...Secretary of Defense Corporate Fellows Program FINAL REPORT FEDERAL EXPRESS CORPORATION LtCol Arthur H. Sass, USMC June 2000 Acknowledgments This has been an interesting, exciting, and educational year. The first hand, on-the-job knowledge I received regarding how Corporate America thinks and what private industry companies are doing to posture themselves for the future is simply priceless. The environment is fast-paced, unforgiving, and wide open. Though the Department of Defense (DoD) and Corporate America play by different rules, the concepts I have been exposed to in the areas of supply chain management, global logistics, and the transportation, distribution and information networks within the Federal Express Corporation deserve some attention from DoD. I would first and foremost like to thank my Lord and Savior Jesus Christ for making this opportunity possible. Thanks also to Mr. Larry McMahan for all of the support and the helping hand he provided whenever I needed it. Mrs. Ellen Tedford, Mr. McMahan’s Assistant, is absolutely the best there is. Thanks Ellen for everything, you’re one of a kind. I would also like to extend a special thank you to Mr. Steve Stapleton for keeping me in touch with the executives and doing his best to get me the face time I needed with them. Kudos to Eric Briggs and Janice Bonat--a staff of two that did the work of 20. Your administrative support and the continuous and timely feeding of current events...
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...FedEx FedEx is a company that provide logistical service. The company is well-known for transportation, e-commerce and business services. Reason behind succeed of the FedEx company has always been efficient information system. The business process will be discussed in the section of How FedEx deliver parcels. Company Mission and Goals “FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards (FedEx, n.d.).” Company History According to FedEx, the company was originally founded by Frederick W. Smith; known as the chairman, president, and CEO of FedEx Corp. In 1965, it was during the process of writing the term paper; Smith got the ideal for FedEx. His term paper discusses leading organisations’ problem in the information technology sector. He also stressed on the point where most airfreight shippers did badly delivering urgent shipments because relying on passenger route systems. To solve the problem, Smith proposed a specific system to deliver time-sensitive shipments. On the...
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...1.0 INTRODUCTION An American global courier delivery service, Federal Express (FedEx) Corporation was founded by Frederick W. Smith in 1971 (Ferrell & Hartline, 2011). Formerly known as FDX Corporation, its headquarter is in Memphis, Tennessee, U.S. There are four segments that the company is divided into which are FedEx Express Segment, FedEx Ground Segment, FedEx Freight Segment and FedEx Services Segment. The FedEx Express Segment includes two companies which are FedEx Express and FedEx Trade Networks. In the FedEx Ground Segment includes FedEx Ground and FedEx SmartPost, For FedEx Freight Segment consists of FedEx Freight, FedEx Custom Critical and Caribbean Transportation Services. As for FedEx Services Segment comprise of FedEx Services, FedEx Office, FedEx Customer Information Services as well as FedEx Global Supply Chain Services. FedEx has experience tremendous success domestically and internationally since it began operations, however FedEx is still does not has the main market share in both markets as UPS dominates the ground delivery and DHL dominates the international express delivery. So in this paper, we will be answering three questions regarding FedEx’s methods of expansion, reasons for its global operations problems, SWOT considerations, competitive landscape and recommendations to encroach upon the two competitors. 2.0 QUESTION 1 Evaluate the methods used by FedEx to grow domestically and internationally. Why do you think that the company initially...
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...personal appeal from Wikipedia founder Jimmy Wales Read now Close FedEx From Wikipedia, the free encyclopedia (Redirected from Fed Ex Corporation) Jump to: navigation, search "Federal Express" redirects here. For the passenger train, see Federal Express (passenger train). "Fed Express" redirects here. For the tennis player with this nickname, see Roger Federer. FedEx Corporation FedEx Corporation logo.svg Type Public Traded as NYSE: FDX S&P 500 Component Industry Courier Founded Little Rock, Arkansas (1971) as Federal Express Corporation Founder(s) Frederick W. Smith Headquarters Memphis, Tennessee, U.S. Area served Worldwide Key people Frederick W. Smith (Chairman, President & CEO) Products Post delivery, express mail, freight forwarding, third-party logistics Revenue Increase US$ 39.3 billion (2011)[1] Operating income Increase US$ 2.37 billion (2011)[1] Net income Increase US$ 1.42 billion (2011)[1] Total assets Increase US$ 27.3 billion (2011)[1] Total equity Increase US$ 15.2 billion (2011)[1] Employees 290,000 (2011)[1] Subsidiaries FedEx Office, FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Supply Chain, FedEx Trade Networks, FedEx Services Website www.FedEx.com FedEx Corporation (NYSE: FDX), originally known as FDX Corporation, is an American global courier delivery services company headquartered in Memphis, Tennessee.[2] The name "FedEx" is a syllabic abbreviation of the name of the company's original...
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...History The modern air and ground express industry was pioneered with the founding of Federal Express in 1971; the corporation was created in 1998 as FDX Corporation and became FedEx Corporation in January 2000. Headquarters Memphis, Tenn. Principal Officers Frederick W. Smith, Chairman, President and CEO Robert B. Carter, Executive Vice President, FedEx Information Services and CIO T. Michael Glenn, Executive Vice President, Market Development and Corporate Communications Alan B. Graf Jr., Executive Vice President and CFO Christine P. Richards, Executive Vice President, General Counsel and Secretary NYSE Listing FDX (since December 1978) FY09 Revenue (Consolidated Information for all FedEx Companies) $35.5 billion Workforce More than 275,000 team members worldwide Average Daily Volume More than 7.5 million shipments for express, ground, freight and expedited delivery services Service Area More than 220 countries and territories, including every address in the United States fedex.com Over 20 million unique visitors monthly; more than 5.5 million package tracking requests daily and 19 million packages shipped via FedEx Ship Manager monthly. Operating Facilities Express: 1,083 stations; 10 air express hubs Ground: 32 ground hubs; over 500 pickup/delivery terminals Freight: Approximately 470 service centers Office: Approximately 2,000 locations Air...
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...PROFILE FedEx Corporation REFERENCE CODE: 3FB515C6-44D5-4A30-BC7E-556271B4A308 PUBLICATION DATE: 28 Feb 2013 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. FedEx Corporation TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 FedEx Corporation © MarketLine Page 2 FedEx Corporation Company Overview COMPANY OVERVIEW FedEx Corporation (FedEx or “the company”) offers overnight courier services, freight services, logistics solutions, and business support services. The company is one of the largest express transportation companies, delivering small packages worldwide. FedEx is headquartered in Memphis, Tennessee and employed 101,000 permanent full-time and 48,000 permanent part-time employees as of May 31, 2012. The company recorded revenues of $42,680 million during the financial year ended May 2012 (FY2012), an increase of 8.6% over FY2011. The operating profit of the company was $3,186 million in FY2012, an increase of 34% over FY2011. Its net profit was $2,032 million in FY2012, an increase of 39.9% over FY2011. KEY FACTS Head Office FedEx Corporation...
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... S. Sreenvas (14PGP119) Ankit Goyal (14PGP070) About FedEx: FedEx Corporation is an American global courier delivery services company headquartered in Memphis, Tennessee. The name "FedEx" is a syllabic abbreviation of the name of the company's original air division, Federal Express, which was used from 1973 until 2000. FedEx Corporation was founded in 1973 by entrepreneur Fred Smith. Today, with a fully integrated physical and virtual infrastructure, FedEx’s business model supports 24–48 hour delivery to anywhere in the world. FedEx operates one of the world’s busiest data- processing centres, handling over 100 million in-formation requests per day from more than 3,000 databases and more than 500,000 archive files. It operates one of the largest real-time, online client/server networks in the world. The core competencies of FedEx are now in express transportation and in e-solutions. Supply Chain Model: FedEx Supply Chain Process: * Order is sent to FedEx via XML, Internet, customer calls, EDI and is processed by the FedEx Order Management System. * Order information is sent from FedEx Information Network. * Order is transmitted to the appropriate Distribution Center. The order is processed, picked and packed and shipped to the end customer. * The package is picked up by FedEx, scanned, and delivered to the end customer. * The Fedex customer is billed for the order. * If the end customer decides to return...
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...COURIER: A courier delivers messages, packages, and mail. Couriers are distinguished from ordinary mail services by features such as speed, security, tracking, signature, specialization and individualization of express services, and swift delivery times, which are optional for most everyday mail services. Considering it as a premium service, couriers are usually more expensive than standard mail services, and less typically faster delivery. Courier services operate on all scales, from within specific towns or cities, to regional, national and global services. Large courier companies include DHL, FedEx, EMS International, TNT, UPS, and Aramex. These offer services worldwide, typically via a hub and spoke model*. *NOTE: The hub and spoke model is a system which makes transportation much more efficient by greatly simplifying a network of routes. It is extensively used in commercial aviation for both passengers and freight, and the model has also been adopted in the technology sector as well. SOME TYPES OF COURIER SERVICES: 1. International Courier: The name of the service somewhat gives it away, but the International Courier service is all about providing customers with a solution to get their package from one country to another no matter the requirement for transportation by air or sea. 2. Same Day Express Courier: This service includes the delivery of the parcel/freight/mail within one working day. This service can often come in different disguises...
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...Fed Ex Case Brief Ever since its establishment, FedEx has committed itself to total quality service and had consistently been ranked on Fortune magazine’s industry lists, including “Worlds Most Admired Companies”, “100 Best Companies to Work For” among other accolades. FedEx has expanded far beyond what its Founder Frederick W. Smith has started back in 1971 and continued to strengthen its position as the market leader in its industry over the past 40 years. Their astounding achievements can be credited to the beginning high standards set by Fred Smith and these well-defined goals are communicated clearly and timely to the employees through its integrated business units. The standards were then periodically reinforced to ensure that they stay relevant, effective and efficient. Today, the rapid and continuous growth in the increasingly volatile and competitive business environment has inevitably contributed to FedEx’s key issues such as coordination, efficiency, customer expectations and employees’ management. As such, Fred Smith has to set new standards and constantly reinforces them in order to maintain all those achievements that gained the company much success over the years. Firstly, Fred Smith changed the way on how it manages employees in the business units. Instead of a rigid hierarchical organizational structure, he focused on employee empowerment and involvement, and emphasized the team approach to getting work done. Through this implementation, the leadership...
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...Fedex Overview | Remarks | Business | | 19000 packages a day75 cities (fly on commercial passenger flights)75 pounds, max 108 inchesMost shipment is less than 50 pounds, 90% are individual pieces | | Fleet – 32X Dassult Faclcon – 6,200 pounds capacity (Air taxi operator, less regulation)9 contract aircraft500 vans | | Hub based in Memphis, Tennessee, a reliable base point, airplane flew in from cities to hub, organized, back to cities in early morning/ 2nd hub in pittsburg | | | | Business Mix | | Courier Pak | | Overnight deliver of documents or items up to 2 pounds in a spcial, water proof, tearproof envelopes, 12 x 15 x 0.5 inches$12.5 for allNeed to purchase 5 paks in advanceOvernight delivery anywhere1,300 packages a day (foresee 6,000) | | P1 - $23.56Next day deliveryAvg 14 pounds*Research shows 93% P1 package got delivered the next day | Potential? Took up a lot of space of aircraft, cannot maximize the potential to make profit<<< Marketing Message for those timid shipper | SAS - $12.622nd business day delivery | | | | Customer | | 31,000 – 15,000 used service in any one month | A lot of repeated customer (50%) | Who are they? Time-sensitive, high-priced, finished goods producers | Marketing Strategy? | Who are they? Traffic Manager, Mail room Supervisor, Shipping Clerk, Dispatcher of organization, but they are restricted to use the firms list of “approved carriers” - They are timid individuals, avoid making troubles...
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