Founded in 1971 in Little Rock, AR.
1973 Federal Express began operation with 389 workers “the modern
Air/ground express industry born”
1978 listed on the New York Stock Exchange with the ticker symbol FDX.
1980 FedEx purchased Roberts Cartage “established in 1947” and began
offering expedited transportation services (now FedEx Custom Critical)
1981 FedEx launched international service to Canada
The FedEx Overnight Letter was introduced
• 10 am delivery on time with money back guarantee
• American Freightways are established (now part of FedEx Freight)
• Began Europe and Asia/Pacific operation after purchasing Gelco Express
• First PC-based automated shipping system
1985 RPS (now called FedEx Ground) is founded in Pittsburgh, PA. and
is the first to introduce a bar-code labeling system to the ground
1986 introduction of the SuperTracker®, a hand-held bar-code scanner
system to input detailed package information.
1990 the first company to win the Malcolm Baldrige National Quality
Award in the service category.
• Federal Express officially changes its name to “FedEx”
• the first to offer online package status tracking
• the first global express transportation company to receive worldwide ISO
9001 quality certification “ ISO 9002 in 2001”
• RPS (now FedEx Ground) achieves 100% coverage of North America.
• The first company to allow customers to process package shipments on the
Internet with FedEx InterNetShip® (renamed FedEx® Ship Manager)
The company FDX renamed to with independent operating
companies that include:
Headquarters: Memphis, TN
President and CEO: David J. Bronczek
Fleet: Air: 669 Ground: 43,000
US Hubs :
Fort Worth, TX
664 aircrafts, including:
71 Airbus A300-600s
53 Airbus A310-200/300s
21 ATR 72s
26 ATR 42s
77 Boeing 727-200s
42 Boeing 757-200s
58 Boeing MD10-10s
17 Boeing MD10-30s
59 Boeing MD11s
8 Boeing 777Fs
10 Cessna 208As
242 Cessna 208Bs
FedEx Custom Critical
Provides expedited freight services or JIT delivery
Headquarters: Uniontown, OH
President and CEO: Virginia C. Albanese
Air: Access to any and all on-demand aircrafts in the world
Ground: 1,400 cargo vans, straight trucks and tractor-trailers
Service Area: United States, Canada, Mexico; Worldwide by air
Headquarters: Pittsburgh, PA
President and CEO: David F. Rebholz
Fleet: Ground: 20,000
Provides large shipments and basic LTL (less-than-truckload)
Headquarters: Memphis, TN
President and CEO: Douglas G. Duncan
Service Area: United States, Canada, Mexico, Caribbean, Central and South
America, Puerto Rico, Europe and Asia.
FedEx Trade Networks
Full-service customs brokerage, trade consulting, information
technology, E-clearance solutions and transportation and logistics
President and CEO: G. Edmond Clark
Established: February 2000
Service Area: Worldwide from more than 90 locations.
The Air cargo Deregulation Act of 1977 opened the market for carriers
and shippers to freely negotiate rates and provide services.
Led to the formation of air express and third-party logistics.
Speed and Reliability in the 70’s:
FedEx invented the concept of overnight express delivery
The distribution was based on the hub and spoke system where packages
are dropped off at pick-up locations and are then routed to a central
Delivery on time came about when the industry in the U.S. utilized the
“JIT and lean manufacturing” concepts:
FedEx set the industry standard in delivery speed and reliability.
In addition to the guaranteed on time delivery FedEx provides
their customers with:
• Several delivery times “10am, 12pm , 4pm”
• Shipment tracking
• Scheduling and routing
• Inventory control systems
• Warehousing expertise
Ability to reach all customers
Integrated Supply Chain Management:
• FedEx provides JIT transportation and delivery for firms
outsourcing their supply chain
• FedEx provides customized supply chain services according to
the customers operation and needs
• More experts in the Information Technology (IT) sector not
just the physical resources such as trucks and planes
• FedEx introduced the concept of “Virtual Warehousing”
• Virtual Warehousing: Other supply chain partner have access to databases
and information such as sales and shipment
• The use of “Demand–Pull”
• pulled by customers not pushed by suppliers
• concentration on knowledge of what the customers need and how
products can be shipped and packed
Critical inventory logistics
Services used to manage the distribution and delivery of the firms
critical parts and inventory using FedEx transportation networks
(Critical Inventory Logistics)
Providing storage, delivery and the efficient return of products, if
needed, while balancing services and cost
It offers the firms the ability to manage and view their inventory
How it works?
The central stocking location is at FedEx Corp. and the forward
stocking locations FedEx Kinko’s using FedEx Express, FedEx
Freight, FedEx Custom Critical, and FedEx Ground
Parts are stored at the right place to be delivered at the right time
Providing multiple delivery options “24 hours, 8 am, 10 am, same
day service as well as hold in locations”
Outflow “from the manufacturer to the FedEx Corp. then to the
Reverse flow “from the customer to FedEx Corp. then either to the
manufacturer or housed as stock”
Delivery and shipment options are based on time, location and cost
A study conducted by the Center for Science, Technology, and
Economic Development indicated that:
FedEx has a significant impact on businesses in the United States
Inventory carrying cost savings for FedEx clients (domestic shipments):
1993 = 63,822,544 USD
2000 = 268,268,977 USD
Total = 1,062,029,887 USD
Inventory carrying cost savings for FedEx clients(international
1993 = 13,851,731 USD
2000 = 56,912,119 USD
Total = 225,633,010 USD
Motor carrier (truck)
Two services for LTL (Less Than Truckload)
FedEx National LTL
FedEx Freight and FedEx National LTL offer:
Economical freight solutions.
Consistent, on-time reliability.
Direct delivery to virtually every ZIP code in the contiguous U.S.
State-of-the art information technology with end-to-end shipment visibility.
A dedicated team of professionals to assist with all of your freight needs.
Freight forwarding capabilities.
Equipment for most shipment sizes or types.
Transit map comparison of FedEx Freight and FedEx
For less than truckload (LTL) freight
additional services are:
Call before delivery
Liftgate at pickup/delivery
Bill of Lading (BOL)
The Bill of Lading (BOL) is a
required legal contract that verifies
that the carrier has received the
shipment as described and is
obligated to deliver that shipment
in good condition to the consignee
(person receiving the freight).
Global Distribution Center (GDC) in Memphis
offers 24/7 - 365 day availability
Late night access to FedEx World Hub and
location convenient to FedEx Ground and
Flexible, scalable multi-client facilities
500,000 sq. ft. facility workspace
Fully temperature controlled and monitored
with a compliant temperature recording system
ISO 9001:2000 certified business processes
Inventory Administration including visibility of
inbound, outbound, and static inventory within
DCs and even web access to your data
What is Transportation Management?
Outsourced management solution
Enhance customer service - shipments managed to
meet individual distribution requirements
Optimize transportation costs - choose optimal
overall transportation solution from FedEx companies
and core carrier networks to reduce costs
Reallocate resources - refocus your time and money on core competencies
Improve order/shipment management
Increase asset and labor efficiency through effective transportation planning
Improve inventory management and production planning
Which services FedEx Transportation Management provides to
Transportation order acquisition
Shipment planning, shipment tendering, shipment monitoring
Freight bill audit and pay
Visibility via Internet management reporting
Correct packing is important to protect your shipment from any
trouble during the transportation.
FedEx Packaging Service: Let us Pack It for You
Size and Weight Restrictions
FedEx Freight and FedEx National LTL shipments may be up to
20,000 lbs. and 24 feet in length
With FedEx Express U.S. services, you can ship packages up to 150
lbs.; up to 119"in length and 165“ in length and girth
With FedEx Express international services, you can ship packages
up to 150 lbs.; up to 108" in length and 130" in length and girth.
Single-Box Packing Method
Ship non-fragile products like soft goods
inside a sturdy outer box.
Use fillers like crumpled newspaper, loose
fill peanuts or air-cellular cushioning
material to fill void spaces and prevent
movement of goods inside the box during
Place goods that might be affected by dirt,
water or wet conditions inside a plastic bag.
Use the H taping method for sealing the
Box-in-box Packing Method
Restrict product movement inside the
box using filler like crumpled newspaper,
loose fill peanuts or other cushioning
Close and tape the inner box using the H
taping method. This will help prevent
Use a second box that is at least 6" longer,
wider and deeper than the inner box
Ship fragile products individually,
wrapping them in a minimum 3"
thickness of air-cellular cushioning
material such as Bubble Wrap
Fill any void spaces with more cushioning
Use the H taping method for sealing the
Proper labeling helps ensure on-time delivery and
Labels on the freight should match the bill of lading and
clearly show the full name and address of the consignee.
The use of brightly colored labels helps identify special
requirements such as:
Do Not Break Down Pallet
Do Not Double Stack
Do Not Forklift
Fragile: Handle with Care
Fragile: Top Freight Only
(pounds) =0.007 x (108 –
H) x L x W x F
Conclude the test when one
of these conditions is first
detected by the compression
The stop force.
The yield detection
The stop deflection.
Truck vibration at 0.52 Grms
(root mean square)
Air vibration at 1.06 Grms
Repeat truck vibration at 0.52
Rotary Vibration Test
Packages will be subjected to a
total of 14,200 vibratory
Aerosol sprays airbags, ammunition, butane, car batteries, cologne,
dry ice, fireworks, gasoline, jet fuel, lighters, lithium batteries,
matches, nail polish, nail polish remover, nitrogen-refrigerated
liquid, paint, perfume, solvents, some chemicals, and more
Normally dangerous materials are surcharged. However, some of
them are do not surcharged.
Dangerous goods in Excepted Quantities (IATA 2.7); excepted
package radioactive materials (IATA 10.5.8); Biological Substance,
and shipments containing primary (non-rechargeable) lithium
batteries and cells that are prepared under IATA Section II of
Packing Instruction 968
Some items may not be regulated as dangerous goods if they
travel by ground, but are regulated by IATA if they are offered for
transportation via FedEx Express services
Integral part of business
“You can focus on your business, while we deliver the
A fast, easy returns process is that key differentiator
Return service examples:
Something for warranty or repair
Documents need to be signed
Helps reducing inventory carrying costs
Offers visibility of every step
New Warehouse Management System (WMS)
View real-time inventory status at each individual
warehouse location or total at all locations.
Search by Part number or Lot number.
Track Orders out of each warehouse by Order Number,
Ship to or Date.
Review Audit History to see chronological record of
incoming and outgoing products.
Print or download query results to a spreadsheet.
The FedEx Freight
and FedEx National
LTL Rating Program
(FXF 1000 & FXNL
501 base rates)
when you are
not connected to
Just offer quotes
for US, Canada
The first -
to install computers in delivery vehicles, providing sophisticated automation for
corporate mailing services and developing tracking capabilities and software.
to offer package-status tracking for improved customer service via fedex.com [‘94]
to offer shipping for improved customer service and convenience via fedex.com
to use of wireless technology for shipping over 25 years ago with the introduction
of the Digital Assisted Dispatch System (DADS).
DADS is a two-way data communication system used by the couriers and central dispatch
center to communicate daily on the pick-up and delivery job orders.
The FedEx Institute of Technology at the University of Memphis
FedEx Innovation Labs
A web-based information platform that transmits sensitive information about
the shipment via a sensing device placed in the package.
Approved by the FAA as well.
Targeted for a 2010 release to select life sciences companies that are shipping
within the U.S.
SenseAware gives the customer the immediate information and automated
tools he needs to respond instantly to unexpected conditions.
With SenseAware, the customer can make smarter decisions and coordinate
rapidly with the supply chain partners.
Exposure to light, humidity, air.
Exact location at the exact time.
Fuel Sense Program
Collaboration with IATA in educating 30 program teams to assess
the overall fuel consumption and searching ways to reduce it.
Replacing 90 narrow-body B727 with B757 that lessen the
environmental impact – reducing fuel consumption up to % 36
while providing % 20 more capacity.
Acquisition of 11 B777 that will provide greater payload capacity
using % 18 less fuel than planes in current international fleet.
Wide-Body planes with Flight Management System use continuous
approach descent, which keeps the plane in idle during the
descent, reducing engine thrust and fuel.
By the end of 2009, FedEx Express was operating a total of 325 hybrid
electric and electric vehicles and more than 1,800 alternative fuel
vehicles and equipment around the world.
Trucks are built by Eaton Corp., Isuzu, Azure Dynamics and Iveco.
FedEx is the only transportation company to publicly call for fuel
efficiency standards for commercial medium and heavy-duty truck
Several Rooftop Solar Energy Powered Hubs
Cologne – Bonn Airport, Germany
In Geneva, the FedEx station uses a system of pipes running deep
into the ground to warm the building’s air in the winter and cool
it in the summer.
FedEx Packaging Lab
FedEx 10kg and 25kg boxes contain a minimum of 70 percent recycled
content and are recyclable.
Most FedEx envelopes are made from 100 percent recycled content
and are recyclable.
All FedEx Express aircraft meet all federal noise certification
standards and comply with FAA Stage 3 noise requirements.
In 1990, FedEx, working with Pratt & Whitney and Boeing,
developed a proprietary noise reduction kit (also known as a
"hush kit") for Boeing 727s.
FedEx has taken steps to reduce the use of auxiliary power
units when the planes are on the tarmac. This effort has
helped drastically to reduce fuel use and noise levels.
Special Delivery Program
Supports local organizations by donating transportation
services and manpower to help them fulfill their missions.
Team members volunteer hundreds of thousands of hours
each year to make our local communities better places to live,
work and play.
Joe Gibbs Racing
Heart to Heart International
Direct Relief International
Water Missions International
Salvation Army Disaster Response Services
American Red Cross
Asia – Pacific Region
Launched as FedEx Asia One Network in 1995.
Headquarters: Hong Kong, China
Main Hubs: Subic Bay, Philippines; Guangzhou, China
30+ countries ; 20+ airports
Launched as FedEx EuroOne Network in 80’s
Headquarters: Brussels, Belgium
Main Hubs: Paris, France; Stansted, UK; Frankfurt & Cologne, Germany
85+ countries ; 35+ airports
Middle East – India – African Region
Commenced in ‘98 as a branch of FedEx Express
Headquarters & Main Hub: Dubai, U.A.E.
70+ countries ; 4+ airports
Latin America – Caribbean Region
Headquarters & Main Hub: Miami, FL
50+ countries ; 20+ airports
Social Networks [Facebook, Twitter, LinkedIn etc.]
United Parcel Service (UPS)
Deutsche Post (DHL)
Thomas Nationwide Transport (TNT)
Plant, Equipment, and Other Properties
Total Liabilities & Equity
Who is focusing on which strategy?
Who is taking more risks?
Who are utilizing their assets more efficiently?
FedEx & UPS are intending to purchase their own facilities
and equipment instead of leasing.
DHL is focusing on the idea of increasing liabilities by
utilizing more leased assets (Aircraft, Equipment,
DHL has a more adventurous strategy than FedEx and UPS.
Increasing Liabilities, therefore utilizing more assets
Increasing risks inevitably (economic downfall affects DHL
more than FedEx & UPS)
DHL’s strategy of taking more risks benefits more in
FedEx & UPS have a more safe approach, which provides
more protection against fluctuations.
Center for Science, Technology, and Economic Development. (2010). Fedex and key industry drivers.
Retrieved from SRI International website:
Center for Science, Technology, and Economic Development. (2010). Business impact: Beyond
“Business as usual”. Retrieved from SRI International website:
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FedEx. (2010). FedEx Distribution. Retrieved November/19, 2010, from
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