Fedex

Trends and opportunities of the parcel service industry include globalization, e-commerce, and supply-chain management. Internet logistics was FedEx and UPS’s fastest growing business. The internet enabled customers to link directly to retailers and their manufacturers. In 2001, parcel carriers served almost all of the online market. They were able to provide information on packages to customers through tracking systems on the web. This allowed customers to plan ahead and decrease delays in deliveries. It also allowed for faster transactions and lower communication costs. Parcel companies created partnerships with large Internet retailers. These partnerships allowed parcel service companies to expand its overall delivery volume. Parcel companies improved tracking by implementing several technological innovations. These included “laser scanners and bar codes, state of the art software programs, satellite and cell phone communication equipment, electronic information interchanges, and the Internet.”

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 created overnight delivery service and second-day delivery service in order to satisfy customers’ need in a way that its competitors cannot. Both services guaranteed delivery time to every customer, they willing to pay the premium price. In this case, customers self-select the option based on their preferences, depending on the relative values of prices or their situational needs. If there is an urgent package, the customer can select overnight service. However, a second-day delivery is a cheaper choice for customers if they do not need to send the package right away. However, these services are still not much different from its rival such as UPS or DHL. FedEx has to add capacity control strategy, which allows it to maintain its revenue.

Fedex is the fastest delivery service. Faster than me, faster than cheetahs, faster than god… I will let the decisions arise out of mental thought. All my life I have been blind to the facts, FedEx can deliver before they even know they delivered. Only when I walk in the distribution centers, I will understand the velocity at which these valiant men and women work to get the services one desires. Like a beehive on speed, the boxes and products are alive. Each with the their own story, a brave and exquisite on the path to satisfaction.

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)

The evolution of the express mail industry had become a quick on-time shipping and delivery of packages. The service had become effective, reliable, and prompt, which most of the top companies could deliver on these guaranteed promises 96-99% of the time. But, delivery services were only a portion of the services being offered to their customers. Carriers had mastered information management that they shared with their customers. Customers were now able to fill out labels, track the route of their package, and assisted in billing using both via carrier provided software or the Internet.

United Parcel Service (UPS), is the world’s largest express package delivery firm that handled more than 4.7 billion packages and documents in 2015. This global transportation and logistics service provider operates in more than 220 countries, and offers an array of supply chain management solutions (UPS Fact Sheet, n.d.). The firm has diversified its products and/or services to include freight forwarding and logistics services via air, ground, rail, and sea. U.S. Domestic Package operations, International Package operations, and Supply Chain and Freight operations are the three operating segments UPS. Through technology advancements UPS delivers online package tracking, e-commerce services, and specialized

FedEx has two major customers who consist of businesses and individual customers. These business customers have accounts with FedEx to arrive at their location to pick up packages daily or weekly. Two-thirds of FedEx’s business comes from these customers so FedEx curves their operations to satisfy this clientele. Since FedEx’s competition is trying to acquire some of this clientele they have begun to operate and market to this clientele more effectively. Individual customers are also in FedEx’s internal environment. These customers represent one-third of their business. With increased competition from competitors FedEx has marketed to this market substantially. They have created boxes that are prepaid for shipment as long as the contents fit into the box. This has effectively increased business amongst individual customers for FedEx.

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.

* Before the package is even picked up, the data from the scannable bar coded label is transmitted to one of UPS’s computer centers in Mahwah, New Jersey, or Alpharetta, Georgia and sent to the distribution center nearest its final destination. Dispatchers at this center

By capitalizing on this strategy, FedEx was able to boost its average delivery volume in 1976 to 20,726 packages per day via its three services, Priority-One, Standard Air, and Courier Pack, compared with an average of 10,521 delivered daily the prior year. Clearly the company’s calculated use of strategically-located hubs, nighttime flight routes, and limited package size allowed the company to carve out a niche by reliably delivering packages on an immediate, overnight basis.

FedEx is a highly centralized organization, with decision-making for the firm centralized at the Memphis headquarters. While national branches of the company have some autonomy in hiring, head office controls hiring policy. Decision-making on large capital projects is also centralized, because the network structure of the company's distribution means that such decisions have global implications. As a result, FedEx has a heavily-centralized structure where very little power is delegated to local managers. Instead local managers are charged with operating the company's strategy efficiently and effectively.

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

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: