COMPANY OVERVIEW
FedEx Corporation (FedEx) is a transportation service that offer overnight courier services, freight services, logistics solutions, and business support services. The company is one of the largest express transportation companies, delivering small packages nationwide and worldwide. It mostly operates in the US. FedEx has its main headquarters in Memphis, Tennessee and has currently employed approximately 300,000 employees in FY2014. The company-recorded revenues of $45,567 million during the financial year ended May 2014 (FY2014), an increase of 2.9% over FY2013.The operating profit the company made was $3,446 million in FY2014, an increase of 35.1% over FY2013. The net profit the company made was $2,097 million in
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However, by driving such a strong brand there are chances that it could affect the operations side of the business.
Strengths
Strong Brand Image
FedEx has many strengths. One of the main strengths is being able to have a great brand name. The FedEx name is known globally by many different consumers. Its name does not only mean reliable, fast delivery service, it brings a sense of security to the consumer. It offers service to over 200-countires in a timely matter and securely. Since 2001, FedEx has been ranked among the top 20 in the FORTUNE World’s Most Admired Companies list.
Large scale of operations
FedEx is integrated in the fact that it offers transportation, e-commerce, and business services to its consumers. The company operates through four business segments, which include FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. FedEx Express is engaged in packages and deliveries throughout the US and to 220 countries worldwide. FedEx Express also offers domestic pickup-and-delivery services within certain non-US countries, including the UK, Canada, China, India, Mexico, Brazil, France, Poland, and South Africa. FedEx Express has approximately 55,500 drop-off locations, 650 aircrafts and approximately 55,000 vehicles and trailers in its fright line. FedEx ground offers its service to the North American consumers for smaller packages, primarily
Federal Express is known as FedEx. It is an express transportation company which was founded by Fredrick Wallace Smith in the early 70’s.
The functionality of FedEx is based on a model that encourages a high level of interconnectedness. The company routes shipments from all over the world through regional hubs. There are only a handful of such hubs around the world. Around five cities in the US form hubs the main hub in Memphis, the west coast hub in Oakland, customs clearance in Anchorage, east coast hub in Newark and Latin America hub in Miami. The use of so many hubs indicates that North America remains a key market, which also accounts for some of the
FedEx is one of the most revered and trusted brands in the world of supply chain accommodations. The FedEx family of companies provides total shipping solutions and information accommodations to customers ecumenical. To the customer, the FedEx brand stands for a company that plenarily and plenarily, positively lives up to its promises. The rudimentary aim of the organization is to distribute a world class customer experience to their customers so that their adhesion grows and they are far less liable to jeopardize endeavoring another carrier. A world class experience transpires when caring, dedicated people secure/ascertain of they distribute quality and engender a sense of feeling of being thoroughly sure in the mind of the
FedEx is a logistical service company specialized in transportation, e-commerce and business services. The success of FedEx lies on an efficient information system. The business process is as follows:
FedEx was first established in 1973 as a logistic company with the name Federal Express that be created by founder and first CEO Frederick W Smith. The Headquarters is in Memphis, Tennessee in the US. The company became well known for its fast and reliable delivery service around the world. On its first night of operation FedEx delivered 186 bundles to 25 urban locations in the US with only 389 employees and a 15 Dassault Falcon aircraft. In 1980 FedEx purchased a system for live updates on the packages. In this system, FedEx drivers share the current locations from the trucks to provide updates of the packages to the customers. This information was sent to a central computer of FedEx then the company improved the update system by introducing FedEx.com webpage. This webpage allowed the tracking data to be easily accessible. However, recently, FedEx uses Savvy bundle for packing and tracking the products across couriers. (Baldwin, 2016)
As the U.S. package delivery business segment matured, International segment became the battle ground for the two package delivery giants – FedEx and UPS. FedEx is considered to be the innovative, entrepreneurial, inventor of customer logistical management, and an operational leader. UPS, on the other hand, is considered to be big, bureaucratic, and industry follower, although UPS is shedding this negative image with newer innovations.
Federal Express (FedEx), founded in 1971, handles countless packaging requests. In order for them to remain competitive they customize their website FedEx.com to field questions received by customers on a daily basis. FedEx has reduced costs by almost $2.00 per incoming call by using the website. Customers are able to speak with a Customer Representative if questions cannot easily get answered on the website. Using the FedEx website instead of the call center FedEx has saved an estimated 1.34 billion dollars a year.
FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services, offering integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. FedEx inspires its more than 290,000 employees to remain absolutely, positively focused on safety, the highest ethical and professional standards and the needs of
Delivering to over 220 countries and territories, FedEx today is a big global industry with a vast network worldwide. The company that started as a laid out in an economics class today is one of the biggest mail distribution corporations known by all customers as the company that “send shipment overnight”
Without a doubt, FedEx has grown thru a series of good management decisions, key acquisitions and some very beneficial strikes and bankruptcies. It has been well established that Federal Express’s first actual day of operations was April 17, 1973, but many do not recognize how several key missteps of competition aided in the rapid development of the newly established company (“History – About FedEx”, n.d.).
These are their daily volumes for those services. FedEx has many service areas. They service over 220 countries, territories and every single address in the U.S. FedEx tends to make more than 6 million package tracking requests daily. This is an outstanding number for a company dealing with packaging and locator with tracking numbers. Their express facility has 1,057 stations, and 10 air hubs. While their ground services has 32 hubs and over 500 pickup/delivery terminals. Freight has approximately 355 service centers and nearly 2,000 office locations. Despite all their services FedEx has a mission. Their mission is to produce outstanding financial returns for their shareowners. However, all customer requirements will be met while providing high value logistics, transportation and related business through operating companies. According to FedEx website, “FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers” (About FedEx). Safety is their number one concerns and first considerations in all operations. However, all their corporate activities will be conducted according to the highest ethical and professional standards. FedEx values their people, service, innovation, integrity, responsibility, and most of all loyalty. This company strategy consists of three levels; compete collectively, operate independently, and manage collectively. These strategies will help the company accomplish their goals. Standing, as
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 team members, partners, and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards (Mission).
FedEx is one of the leading logistics companies in the United States, with a particular specialty in Home Delivery. From a grassroots background to the thriving company you see today, FedEx has navigated many twists and turns to stay competitive. FedEx Home Delivery has blossomed since its inception, by offering value added services to its customers such as Delivery Manager and the Package Returns Program. However, they have also struggled to keep up with the exploding growth of e-commerce. In an effort to outpace in competitors by investing heavily in infrastructure, FedEx Home Delivery is at a precipice in which there is no turning back.
When it comes to strategy, FedEx has done a great job of staying on top in the market place after all these years. FedEx has built a very powerful empire over the last decade, insuring customers with different global delivery services. Different companies have different strategies that work with their company to reach a specific goal, at FedEx the main strategy for success would be customer service. Customer service would have to be the number one strategy FedEx is mostly concerned with and constantly researching new ways to make it easier and more convenient for customers to deliver packages across the world. To help accommodate customers, FedEx has established online databases to ensure customers of package delivery; customers are able to track packages from the convenience of their homes or offices. Something else that FedEx has established are flights, and freights for those international customers, they have also improved services to and from all over Europe as well as Asia, in
FedEx Corporation, situated in US, is one of the leading supply chain management solution providers in the world. With annual revenues as high as USD33 billion, the company offers incorporated business