FedEx started in 1971 to facilitate overnight delivery of documents via airfreight directly to customers at affordable costs. It has since expanded to offer a variety of transportation, logistics, and supply chain services worldwide. FedEx utilizes a hub-and-spoke model with 10 air hubs and over 750 delivery centers globally to transport over 3.6 million shipments daily. The company provides integrated services like transportation management, order fulfillment, and returns management through its network and subsidiaries.

1. MENTOR GROUP 2
LEAD
COLLEGE OF MANAGEMENT

2. ABOUT FEDEX
THE JOURNEY
 STARTED IN 1971, TO FACILITATE OVERNIGHT DELIVERY OF DOCUMENT
THROUGH AIRFREIGHT SYSTEM DIRECTLY TO THE CUSTOMERS AT
AFFORDABLE COSTS.
 OFFERS VARIETY OF SERVICES INCLUDING WAREHOUSE MANAGEMENT,
INVENTORY MANAGEMENT, TRANSPORTATION AND LOGISTICS
MANAGEMENTS TO NAME A FEW.
 THE COMPANY IS KNOWN FOR ITS OVERNIGHT SHIPPING SERVICE AND
PIONEERING A SYSTEM THAT COULD TRACK PACKAGES AND PROVIDE REAL-
TIME UPDATES ON PACKAGE LOCATION.
 SERVES MORE THAN 220 COUNTRIES.
 DELIVERS ~3.6M SHIPMENTS EACH DAY.

3. ABOUT FEDEX
Industry Courier
Founded 1971; 47 years ago
(as Federal Express Corporation)
Little Rock, Arkansas
Founder Frederick W. Smith
Headquarters Memphis, Tennessee, U.S.
Area served Worldwide
Key people •Frederick W. Smith
(Chairman & CEO)
•David J. Bronczek

4. FEDEX:ROBUST NETWORK
Hong Kong, China, Toronto, Ontario,
Brussels, Belgium, Dubai, UnitedArab
Emirates and Miami(Florida)
750Worldwide delivery centres
1775 Office Drop-offLocations
6300Authorized Shipping Centres
38,500 Drop BoxLocations
10 Express AirHubs
Operations atmore than 375Airports
Operations atmore than 1,240
647 Aircraft inuse
47,500 Motorizedvehicles

5. AT A GLANCE: FEDEX SUPPLY CHAIN BY THE
NUMBERS

6. WHAT IS FEDEX’S BUSINESS MODEL?
FEDEX CREATES VALUE BY OFFERING “HIGH-VALUE ADDED” PACKAGE
DELIVERY TO OVER 220 COUNTRIES.
THE BUSINESS MODEL CAN BEST BE SUMMED-UP IN THE COMPANY’S
EARLY SLOGAN: WHEN IT ABSOLUTELY, POSITIVELY HAS TO BE THERE
OVERNIGHT.
WITH 652 AIRCRAFT (THE WORLD’S LARGEST FREIGHT AIRLINE) MOVING
OVER 4 MILLION PACKAGES PER DAY, FEDEX GUARANTEES SPEED WITH A
RELIABILITY OF GREATER THAN 99%
FEDEX PROVIDES A PORTFOLIO OF TRANSPORTATION, E-COMMERCE, AND
BUSINESS SERVICES THROUGH WHOLLY OWNED SUBSIDIARIES. IN THE
SAME YEAR, FORTUNE RANKED THE COMPANY 12TH FOR THE “WORLD’S
MOST ADMIRED COMPANIES” FOR THE 14TH CONSECUTIVE YEAR.

7. FEDEXMODEL
Customerstake packagesto a FedExOfficewherethe packageisweighedandlabelled.Alternatively, they canprint out smart
labelsfrom fedex.comandscheduleapickupwhena delivery truckisin the area or dropthe packagein alocal drop
box
At designated times, all of the accumulated packages from a given location travel, usually by truck, to a local or regional
sorting/distribution facility. If packages are destined further than 200 miles, they travel by air. Otherwise they travel by truck
to the localreceivingsortingfacility

9.  FEDEX SERVICES
PROVIDES SALES, MARKETING, INFORMATION TECHNOLOGY,
COMMUNICATIONS, CUSTOMER SERVICE, TECHNICAL SUPPORT, BILLING AND
COLLECTIONS SERVICES FOR U.S. CUSTOMERS OF OUR MAJOR BUSINESS
UNITS AND CERTAIN BACK-OFFICE FUNCTIONS THAT SUPPORT OUR OTHER
COMPANIES.
FEDEX GROUND
IS A LEADING NORTH AMERICAN PROVIDER OF GROUND SMALL-
PACKAGE DELIVERY SERVICES, PROVIDING SERVICE TO THE U.S. AND CANADA.
FEDEX HOME DELIVERY®, THE INDUSTRY'S FIRST GROUND SERVICE DEDICATED
TO RESIDENTIAL DELIVERY, IS AVAILABLE FROM FEDEX GROUND AND PROVIDES
SATURDAY DELIVERY FOR NO ADDITIONAL CHARGE.
FEDEX FREIGHT
IS A LEADING U.S. PROVIDER OF LESS-THAN-TRUCKLOAD (LTL) FREIGHT
SERVICES ACROSS ALL LENGTHS OF HAUL. FEDEX FREIGHT SERVES VIRTUALLY
EVERY U.S. ZIP CODE (INCLUDING ALASKA AND HAWAII) WITH INDUSTRY-
LEADING TRANSIT TIMES, AND ALSO SERVES CANADA, MEXICO, PUERTO RICO,
AND THE U.S. VIRGIN ISLANDS.

10. SPOKE–HUB
• A HUB AND SPOKE NETWORK IS A CENTRALIZED, INTEGRATED
LOGISTICS SYSTEM DESIGNED TO KEEP COSTS DOWN. ... LOWE'S HAS
EMBRACED THE CONCEPT OF THE HUB AND SPOKE DISTRIBUTION
MODEL, ALLOWING THE COMPANY TO GAIN A LARGE SHARE OF THE
HOME IMPROVEMENT MARKET.
• THE WORDS "HUB" AND "SPOKE" CREATE A PRETTY VIVID IMAGE OF
HOW THIS SYSTEM WORKS. A HUB IS A CENTRAL AIRPORT THAT
FLIGHTS ARE ROUTED THROUGH, AND SPOKES ARE THE ROUTES THAT
PLANES TAKE OUT OF THE HUB AIRPORT. MOST MAJOR AIRLINES HAVE
MULTIPLE HUBS. THEY CLAIM THAT HUBS ALLOW THEM TO OFFER
MORE FLIGHTS FOR PASSENGERS.

11. FEDEX
• IN THE MID-1970S FEDEX ADOPTED
THE HUB AND SPOKE MODEL FOR OVERNIGHT
PACKAGE DELIVERY. AFTER THE AIRLINE
INDUSTRY WAS DEREGULATED IN 1978, SEVERAL
OTHER AIRLINES ADOPTED
DELTA'S HUB AND SPOKE PARADIGM. AIRLINES
HAVE EXTENDED THE HUB-AND-SPOKE MODEL IN

12. HUB
City - 1Pickup - 1
Pickup - 2 Delivery -1
City - 2
Delivery -2
City - 3
City - 4
Pickup - 3Delivery -3
In addition to the superhub hub in Memphis, there are
nine other air hubs serving for particular zones of the
world with similarinfrastructure to theSuperhub
International
• GuangzhouInternationalAirport in Chinaoperatesfor
AsiaPacific
• TorontoI. A. forCanada
• Paris Charles de Gaulle Airport and Cologne
Bonn Airport for Europe,Middle EastandAfrica
• Miami I.A. for LatinAmerica-Caribbeanarea
• TedStevensAnchorageinAlaskafor a part ofAsia Pacific
Domestic
• OaklandInternational Airport (CA)
• Newark LibertyInternational Airport (NJ)
• FortWorth AllianceAirport (TX)
• IndianapolisAirport (IN)
FEDEX:HUBAND SPOKE MODEL

13. TRANSPORTATIO
N

14. FEDEX TRANSPORTATION MANAGEMENT
• MANAGE ALL INBOUND AND OUTBOUND TRANSPORTATION
• APPLY A TOP-TIER TRANSPORTATION MANAGEMENT SYSTEM
(TMS)
• TIME-DEFINITE OPTIONS
• FREIGHT SOLUTIONS
• ACCREDITED FREIGHT EXPERTS
• AN ONLINE WEB PORTAL
• A SINGLE POINT OF CONTACT

15. FREIGHT MODES
• DRY VAN FREIGHT
• FLATBED AND HEAVY FREIGHT
• LESS-THAN-TRUCKLOAD (LTL) FREIGHT
• INTERMODAL SHIPMENTS
• REFRIGERATED FREIGHT
• BULK FREIGHT

16. FEDEX: TRANSPORTATION MANAGEMENT
SERVICES• FEDEX TRANSPORTATION MANAGEMENT IS AN OUTSOURCED SOLUTION THAT OFFERS END-
TO-END TRANSPORTATION MANAGEMENT OPTIMIZED, MULTI-MODAL, AND DOOR-TO-DOOR
• A SINGLE POINT OF CONTACT FOR ALL TRANSPORTATION NEEDS
• IT LEVERAGES THE FEDEX FAMILY OF COMPANIES (ALONG WITH A SELECT GROUP OF CORE
CARRIERS) TO HELP CUSTOMERS IMPROVE OPERATIONAL EFFICIENCIES AND CUSTOMER SERVICE
• TRANSPORTATION MANAGEMENT WORKS WITH THE CUSTOMER TO DETERMINE OPTIMAL
SHIPPING MODES, MINIMIZE RECOVERY NEEDS, FACILITATE CLAIMS MANAGEMENT, AND PROVIDE
CONSOLIDATED REPORTING AND INVOICING
• FEDEX ALSO PROVIDED ADDITIONAL RELATED SERVICES LIKE CUSTOM CLEARANCE,
INSURANCE, TRADE CONSULTING THROUGH THEIR SUBSIDIARY COMPANIES
• SUITABLE FOR LARGE, COMPLEX TRANSPORTATION PROJECTS THAT REQUIRE ORCHESTRATED
WORLDWIDE DELIVERIES

17. TRANSPORTATION MANAGEMENT
 NETWORK DESIGN AND
OPTIMIZATION
PROCURING TRANSPORTATION
RESOURCES
OUTSOURCED TRANSPORTATION
MANAGEMENT
ARRANGING FREIGHT SOLUTIONS
OPTIMAL MODE SELECTION
SHIPMENT CONSOLIDATION
BENEFITS
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

18. TRANSPORTATION MANAGEMENT PROCESS
•The FedEx Managed Transportation Service allows our customers to
send bulk transportation order requests using a single interface
stream and performs the following processes for each order:
Verify/validate order data
•Select appropriate routing for order
•Communicate transport order to FedEx Express or designated service
provider
•Shipment tracking
•Process invoices from other carriers
•Prepare billing for customers

19. OLD SUPPLY CHAIN

20. NEW SUPPLY CHAIN

21. FEDEX: INTEGRATED ORDER FULFILLMENT
SERVICES
• INBOUND AND OUTBOUND ORDER FULFILLMENT SERVICES INCLUDING, PICKING, PACKING,
SHIPPING AND DELIVERING THE GOODS
• FULFILMENT SERVICES IS AN INTEGRATED, END-TO-END, SUPPLY CHAIN OFFERING.
INCORPORATING TURNKEY SOLUTIONS, THESE SERVICES
• ARE MODULAR AND SCALABLE - ALLOWING THE CUSTOMER TO DESIGN AND CONFIGURE
SOLUTIONS TO MEET SPECIFIC NEEDS ,ONLINE CATALOGUE DESIGN AND ONLINE MARKETING
INITIATIVES TO PROMOTE NEW SALES , INVENTORY FORWARD STOCKING LOCATION
REPLENISHMENT ,ORDER PICKING BY SERIAL NUMBER, LOT NUMBER AND EXPIRATION DATE
ORDER CONSOLIDATION ,CUSTOMS CLEARANCE ,CROSS-DOCKING AND KITTING
,PREPARATION OF INTERNATIONAL PAPERWORK , SPECIALIZED PACKAGING AND LABELLING
CUSTOMIZED WEB SOLUTIONS FOR END CUSTOMER ORDER ENTRY AND VISIBILITY
• BENEFITS TO THE CUSTOMER , HELPS CUT OVERHEAD COSTS BY OUTSOURCING WAREHOUSE
AND SOFTWARE NEEDS AND PROVIDING A VARIABLE FEE STRUCTURE , LIMITS INVESTMENT AND
RISK IF YOU'RE ENTERING NEW MARKET SEGMENTS

22. FEDEX: RETURNS MANAGEMENT
• FEDEX OFFERED RETURNS
MANAGEMENT OF PICKING FROM THE
DISPATCHER TO DELIVERING TO THE
MANUFACTURER, AN ONLINE PORTAL
TO ACCESS INFORMATION OF PICKUP
ON DELIVERY DETAILS, TECHNOLOGY
APIS SO THAT THE CUSTOMER CAN
PUBLISH THE RETURNS INFORMATION
ON TO THEIR OWN WEBSITE USING
FEDEX INFORMATION
• KEY ASPECTS
• CONSOLIDATED RETURN SERVICE TO HANDLE
LARGE VOLUME
• RETURNS FOR ONLINE RETAILERS
• MULTIPLE TRANSPORTATION LEGS SUPPORTED,
FOR THE COLLECTION OF A BROKEN UNIT AND
RETURN AFTER REPAIR
• AUTOMATIC SELECTION OF OPTIMAL SHIPPING
MODE BASED ON THE REQUESTED DELIVERY TIME
AND OR SLA WITH END CUSTOMERS
• END-TO-END MANAGEMENT OF RETURNS
PROVIDING GREATER CONTROL
• END OF LIFE SOLUTIONS — RECYCLING AND
DISPOSAL
• TRY AND BUY/CONSOLIDATED RETURNS
• A SINGLE POINT OF CONTACT FOR ALL RETURN

23. FEDEX: RETURNS MANAGEMENT
Orchestrated Delivery Management:
Through orchestrated delivery
management Fedex consolidated bulk
shipments, multiple consignees
thereby the custom clearances were
got in single lot. After this the
consignment is shipped to respective
customers.

24. SWOT
Strength Weakness
•Network in more than 220
countries and more than
3,25,000 employees worldwide
•Best use of technology
•Dependable knowledge in the
delivery business.
•High investment in IT
systems
•More than three decades of
experience in logistics services
•More dependence on US
market
•Since this is a competitive
segment, the market share
growth is limited
•Less competitive ground
shipping

25. OPPORTUNITI
ES
 TO USE COOPERATIVE
STRATEGIES
 CHALLENGING COMPETITORS
THROUGH MERGERS AND
ACQUISITIONS
 LOCAL COMPETITORS WITH
 POOR SERVICE & PRODUCTS
 ACQUIRE SMALLER COMPANIES
TO INCREASE MARKET SHARE
Threats
 Rising fuel prices could
impact company’s profit
 Varying market demand
 Vulanrable(unsafe) to
increasing reach by major
competitors.

26. CONCLUSION
FEDEX HAS ESTABLISHED ITSELF HAS LEADER IN SHIPPING, LOGISTICS,
WAREHOUSING AND MANAGEMENT RELATED SERVICES
EDEX OVER A PERIOD OF MANY YEARS ESTABLISHED STRONG AND
CONSISTENT SCM PROCESSES, EXCELLENT INFRASTRUCTURE FACILITIES AND
HUGE IT INVESTMENTS, HELPED ITSELF POSITION AS STRONG TACTICAL
LOGISTICS PROVIDERS IN THE SCM SERVICES INDUSTRY
 THUS, IT CAN MOVE UP TO ADD STRATEGY PART OF THE SCM SERVICES AND
PROVIDE 4PL (4TH PARTY LOGISTICS) PROVIDER AND BECOME TRUE PARTNER
FOR THEIR CUSTOMERS
4PL NORMALLY DOESN’T OWN ASSETS AND DO MORE CONSULTING AND
COORDINATING WORK AND ENGAGE MANY 3RD PARTY LOGISTICS PROVIDERS;
 AS 4 PL, FEDEX NOT JUST HAVE TO LOOK FOR ITS OWN ASSETS BUT ALSO USE
THE BEST OF BREED LOGISTICS PROVIDER BASED ON CUSTOMER SITUATION