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FedEx Company Overview and Milestones

Federal Express (FedEx) was founded in 1971 by Frederick W. Smith and began operations on April 17, 1973 with 186 packages delivered to 25 cities. Today, FedEx has a global network delivering packages to over 220 countries via multiple subsidiaries. FedEx uses information technology extensively throughout its operations to track packages, integrate its supply chain, and provide services to its business customers. While facing intense competition from UPS and the US Postal Service, FedEx remains a leader in the transportation and logistics industry through its focus on employees, customer service, and innovation.

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37 views22 pages

FedEx Company Overview and Milestones

Federal Express (FedEx) was founded in 1971 by Frederick W. Smith and began operations on April 17, 1973 with 186 packages delivered to 25 cities. Today, FedEx has a global network delivering packages to over 220 countries via multiple subsidiaries. FedEx uses information technology extensively throughout its operations to track packages, integrate its supply chain, and provide services to its business customers. While facing intense competition from UPS and the US Postal Service, FedEx remains a leader in the transportation and logistics industry through its focus on employees, customer service, and innovation.

Uploaded by

Anup Popli
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Federal Express

Amanjit Kaur Melanie Kwan Lalaine Lagsob Phoebe Lee Jennifer Low

Background

Founded by Frederick W. Smith


Original concept at Yale Early beginnings 1971 first incorporation

Yesterday and Today

April 17, 1973 First day of Operations


186 packages 25 cities

Today
210 countries Global network
Asia-Pacific Canada Europe, Middle East, Africa Latin America-Caribbean

FedEx Corporation

Subsidiaries
FedEx Express FedEx Ground

FedEx Freight
FedEx Custom Critical FedEx Trade Networks FedEx Services

FedEx Corporation

1998 Original name of FDX corporation


January 2000 Change name to FedEx Corporation

Milestones
1975 First showed profits 1977 Deregulation for air cargo allowed use of larger aircraft 1984 Services to Europe and Asia began

Goal

Operate independently and compete collectively

Current Statistics

2003 Revenue of $22.5 billion


44,000+ Location 185,000+ Employees

Suppliers

Supply chain management

Competition

United Parcel Service: Net Income


DHL United States Postal Service

Customers

Small businesses
Shoppers Meeting customers expectations through IT

Use of IT/IS

FedEx Insight
FedEx Wireless Solutions FedEx Global Solutions Smart Tags from FedEx

Bargaining Power of Suppliers

Fairly low for FedEx


Suppliers have to face their own competitions e.g. Suppliers of delivery vehicles have to compete in order to gain FedExs business

Exceptions:
Highly unionized workforce can have more

power if protected by their unions and labor contracts

Threat of New Entrants

Large capital investments are required for entering this industry


Air fleets, warehouses, distribution centers,

labor force

Customers are difficult to attract because of switching costs


Online tracking, online sales, and shipping

system

Bargaining Power of Buyers

Can vary greatly between new and existing customers


New customers initially have power Shop around for low prices; demand a certain level of service

Existing customers have decreased power


High switching costs made them unwilling to

change

Threat of Substitutes

Currently low, but subject to change


E-mail
Less likely to be used to transmit sensetive info

Regular mail (e.g. US Postal Service)


Still have issues with security, speed, and

reliability

Competition Between FedEx and its Rivals

Is extremely intense
New business strategy e.g.) UPS who is specialized in ground shipping has came up with UPS Overnight e.g.) FedEx whos main focus is in the business segment is planning to enter the residential market

None of the companies have a clear domination over one another

Opportunities

Top Employer
Strong Commitment IT as culture

Key Strategies

People-Service-Profit
COSMOS IT/IS

Company Strengths

Transportation & Logistics


World-class logistic services

Business Logistics Services Division

Company Weaknesses

Web-based interface
-Design/layout of software -Lack of a single systems/data transfer standard

-Difficulties filling out online air bills

Company Strengths

Virtual Merchandising

Gives business opportunity to outsource a lot more of its logistics operations irrespective of size or nature of its business.

Electronic Commerce Integrated Supply Chain Solution

Electronic order taking and customer interaction drove costs down.

Allowed firms to concentrate on their core business, be it in manufacturing or service excellence

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