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    Fed Ex

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    Anup Popli
    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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    Fed Ex

    Uploaded by

    Anup Popli
    114 views22 pages
    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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    FedEx

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    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.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    114 views22 pages

    Fed Ex

    Uploaded by

    Anup Popli
    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.

    Copyright:

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    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 22

    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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