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Worldwide express business reinvestment model press release by dallas business journal


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Worldwide Express - a Dallas based package and frieght shipping firm exceeded half a billion in annual revenue by partenring with UPS and FedEx following ites new business model. This model is more emphasized about adding value and enhancing relationships with customer.

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Worldwide express business reinvestment model press release by dallas business journal

  1. 1. For the next generation of great companies February 22-28, 2013 IDEAS IN AC TIONAfter surviving significant loss, Taking on the world SHIPPING SERVICEWorldwide Express exceeds NAME: Worldwide Express BUSINESS: Shippinghalf a billion in annual revenue HEADQUARTERS: 2828 Routh St., Ste. 400, Dallas 75201 OWNERSHIP: PrivateBY GHIANDA BECERRIL | STAFF WRITER TOP EXECUTIVE: David Kiger EMPLOYEES: 500 Founded in 1995, Worldwide Express, a ANNUAL REVENUE: $530 millionDallas-based package and freight shipping PHONE: 214-720-2400firm, was started to help small and midsize WEB: wwex.combusinesses get the same shipping serviceas larger companies. Now it has more than 150 franchised G R E AT E S T C H A L L E N G Elocations throughout the United States,averages 16 million shipments each year ‘We were in a very difficultand has more than $500 million in annual position as most all of $300revenue. million-plus in system revenue JAKE DEAN “I became inspired to establish the modeldoing an assignment while working at depended on DHL moving ourTrammell Crow. It became apparent to me REACTION TIME: When David Kiger, CEO of Worldwide Express, realized the company was about to lose packages from point A to B,’ saidthat the market leader in express, FedEx,treated small to medium-sized companies, its shipping partner, he led a fast move to a new partner and a reinvestment in the company. CEO David Kiger.or companies with multiple locations likeCrow, very differently than larger ones,”said CEO and founder of Worldwide Ex- small-business customer on a nationwide network.” it turned out to be a very positive thing forpress, David Kiger. “I then quickly moved basis. It is truly differentiated in this mar- Worldwide Express fell from $330 million the long-term prospects of the company.“to start Worldwide Express to focus on and ketplace. The premise of the model is to a year in run-rate sales to $160 million, all Kiger said Worldwide’s survival is basedtarget the underserved small to medium add value and enhance the relationship in the fourth quarter of 2008. That loss in clear and frequent communication andsized business segment.” with the customer.” occurred during the busiest time of year belief in the business model. The company has experienced consistent Although the company has now reached for the company and at a time when the “Nothing good can come from a lack ofgrowth since the start. In 2012 Worldwide over $530 million in revenue, in 2008 the economy was rapidly deteriorating. Com- communication,” he said. “I made sure allExpress was named the No. 1 employer in company lost over half of its total revenue. pany executives had to quickly decide what of the news was disseminated regardlessthe United States for career advancement Worldwide became aware that its partner their next step would be, and partnered of whether it was good or bad. We knewby DHL was significantly cutting back in the with their now main freight partner, UPS. where we were going and we believed in “The company is full of qualified young U.S. market. The company quickly moved “After securing our light-pack business the power of our model.”folks. They are dressed in business attire; forward with discussions with other pos- with UPS, we swiftly deployed our freight Back on track, company officials are hop-they knock on doors and meet with compa- sible partners, UPS and FedEx, in order to program with a focus on less-than-truck- ing to reach $1 billion in revenue in thenies and ask about their shipping,” Kiger get the company back on track. load,” Kiger said. This diversification was next four to five years.said. “We were in a very difficult position as key for the company, he said, because it “It is only a matter of time before every Ed Ross, CEO of Fidus Investment Cor- most all of $300 million plus in system rev- allowed franchisees to begin to replace the business owner finds themselves in a realporation, said that, since its initial invest- enue depended on DHL moving our pack- suddenly lost revenue. do-or-die situation, perhaps several ofment with Worldwide Express in August ages from point A to B,” Kiger said. “Their “We invested in the business because them over time,” Kiger said. “You have toof 2007, he’s been pleased with the overall ultimate withdrawal from the U.S. acceler- of the strength of the management team be willing to make adjustments to the plangrowth of the company. ated things dramatically and we were left and the value proposition that Worldwide as situational dynamics dictate.” “The Worldwide business model enables with very little time to get our customers provides a small business,” Ross said. “Itthe company, as a system, to reach the and our shipments into our new partners’ was a tough period, but the reality is that | 214-706-7124 Reprinted for web use with permission from the Dallas Business Journal. ©2013, all rights reserved. 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