Page 1
Federal Express, or now known as FedEx, is an international express shipping company that ships anything from envelopes and small packages to large freight. It was the brain child of college student Fredrick Smith, when in 1965 at Yale a professor assigned the class to invent an industry. At that time the only option companies had was to utilized passenger routes to ship packages, which was not very efficient for time sensitive deliveries. Six years later after Smith left the military he bought a small company and experienced how difficult it was to get supplies delivered within a couple of days. Remembering the paper he had written in college, Smith founded Federal Express in 1973. Starting with 14 small planes today it has grown into the world’s largest al-cargo air fleet.
By 1980 FedEx was way ahead of the competition and the company was growing by 40 percent per year with 1 billion in revenue. Through many international acquisitions and mergers they have grown internationally and now delivery to over 220 countries. As the demand for express freight shipments increased so did the need to ship and receive documents overnight. The overnight letter service was introduced by FedEx in 1981 and is now a part of standard business practices for most companies in America and the world. Many companies have multiple overnight deliveries and pickups throughout the day. FedEx saw the future potential of overnight letter, package and freight deliveries and started to
In addition to that, FedEx came up with new services such as Saturday deliveries, delivery by 10:30 A.M., customer interfaces (drop boxes, drive through stations and express delivery stores) and same day pickup of order. This is to distinguish its services. More on that, FedEx's philosophy of "People-Service-Profit" was successful in insuring a union free workforce devoted to customer focus. In 1978, deregulation in transportation helped FedEx to acquire larger planes therefore achieve lower cost. Trade deregulation in Asia-Pacific enabled FedEx to expand further. The acquisition of Gelco express, Tiger International, and establishment of Airport Hub in Brussels expanded FedEx internationally. Inflation and rising global competitiveness generated the need for "just-in-time" supply model, which was the advantage supported by FedEx advanced technologies.
Federal Express established itself as a key player in the competitive airfreight industry, just three years after beginning operations, as a direct result of its unique strategic hub system and a policy of limiting package size to under 70 pounds.
FedEx Services was created in 2000 as a vehicle to merge Sales, Marketing, and Technology support for FedEx Express and FedEx Ground. This "manage collaboratively" effort was a well-devised method of creating efficiency and customer focus into the FedEx brand, while maintaining independent operating companies. Today, Services coordinates these functions and ecommerce activities for FedEx Freight as well.
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)
UPS has a first mover advantage over FedEx, beginning air delivery service in 1929. Although FedEx was the first to own and operate their own planes and introduced the innovative “hub and spoke” distribution pattern, UPS leads in specialized transportation and logistics services. In 1975, UPS promised package delivery to every address in the United States; FedEx was not able to guarantee delivery in every area. When deregulation of the domestic airline industry and trucking industry occurred, the
Fedex also known as Federal Express is an organization that offers transportation, web based business and business administrations with the assistance of a few organizations that are working together under one brand. The organization has four business portions, for example, FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services (FedEx Corporation, 2012). Mean while United Postal Services (UPS) is the world 's greatest package movement association and pioneer in giving overall stock system organization game plans. It is a pioneer in collaborations and makes a motivating force for customer through organizations, cut down costs and significantly movable stock system control and detectable quality (United Parcel Service,
The second package delivery company identified is FedEx. This company originated in 1971 as Federal Express Corp., a small delivery firm with a fleet of 14 small aircraft located in Memphis, Tennessee. This company quickly grew and in 1994 adopted "FedEx" as its primary brand. "Originally called FDX Corp., FedEx Corp. was formed in January 1998 with the acquisition of Caliber System Inc." (FedEx, 2005). From the first day a customer used overnight delivery, FedEx has been at the leading-edge of change.
Fred Smith, is the founder CEO of FedEx, the first overnight express delivery company in the world, and the largest in the nation. To really grasp the concepts that he used in the formation and launch of the company, we really should examine the story in his own words. A former Marine Aviation pilot in Vietnam, Smith founded Federal Express. In 1973, the company began offering service to cities, beginning with small packages and documents. The focus was upon developing an integrated air-ground courier system something that had never been done before. What guided Smith more than anything else according to his own words were the leadership qualities that he developed as a Marine officer in Vietnam that have guided his company from the beginning. These principles, plus his days at Yale came together in FedEx. In his philosophy, he tells his managers to rely on their subordinates, delegate and to praise in public for a job
FedEx Corp., founded by Frederick W. Smith, began operations in April 1973 and was incorporated on October 2, 1997. FedEx Corp. is a publicly traded company on the New York Stock Exchange and headquartered in Memphis, TN. Fedex Corporation was formed in January 1998 with the acquisition of Caliber System Inc. The company reports in four major business segments. FedEx Express provides time-certain delivery within one to three business days serving markets that comprise more than 90 percent of the world 's gross domestic product. FedEx Ground provides low-cost, day-certain service to every business address in the United States, Canada and Puerto Rico
FedEx is based upon innovation, and it exactly is one of the important reason for the successful of the FedEx culture and business strategy. FedEx launched a new service which is the next business day delivery service. A quote from Fred Smith whose the president of FedEx “The information about the package is just as important as the package itself”. The innovative culture within FedEx is deemed as a distinct competitive advantage in terms of the strategic business practices that are continuously encouraged.
FedEx is a service business which provide postal service using trucks and airplane inclusive. Company operates in 220 countries. It started its service in China and India, two emerging markets, in 1990s.
FedEx is the world 's largest express delivery, ground small-parcel delivery, less-than-truckload freight delivery, supply chain management, customs brokerage, trade facilitation and e-commerce solutions company with more than 145,000 employee 's worldwide and delivering more than 3.2 million packages daily. They command a fleet of 634 aircraft and more than 42,500 vehicles. FedEx offers various international packages and document delivery services to 214 countries, as well as international freight services and also offers commercial and military charter services. On 12-Feb-2004, FedEx Group acquired Kinko 's, Inc. Now it also provides document solutions and business services, including copying and printing services, signs and graphics,
FedEx was established on June 18, 1971, founded by Fredrick W. Smith, in Little Rock, AR. FedEx is a well known American corporation that brings courier global delivery service to its customers. Having such a wide range of portfolios, FedEx has been able to incorporate many different delivery systems for maximum customer satisfactory, with the help of e-commerce, and global delivery service it is no surprise that FedEx has consecutively been ranked amongst the most admired and trusted employers.
With the air cargo deregulations in 1977, the company was able to use larger aircrafts like Boeing 727s to further improve their operational efficiency and performance, leading to rapid growth of the company. By 1980, it had established its position in the industry and had a growth rate of 40% and became the first company to reach the USD 1 billion revenue-mark within 10 years of inception. Following international acquisitions in 1984, Federal Express started its operations in Europe & Asia. In 1994, Federal Express official adopted ‘FedEx’ as its primary brand and became a symbol of overnight parcel delivery services.