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History of FedEx. 1973 – Began operations as first integrated air/ground express carrier Delivered 186 packages to 25 U.S. cities using 14 Falcon jets. Today, FedEx connects more than 211 countries in less than 24-48 hours, & delivers 3.3 million packages daily

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slide1

History of FedEx

  • 1973 – Began operations as first
  • integrated air/ground express carrier
  • Delivered 186 packages to 25 U.S.

cities using 14 Falcon jets.

  • Today, FedEx connects more than 211
  • countries in less than 24-48 hours, &
  • delivers 3.3 million packages daily
  • using 667 dedicated aircraft
  • (the world’s largest all-cargo fleet)
slide2

Growth of the Express Delivery Industry

  • Increase in high-tech & high-value
  • added products as a % of all economic
  • activity
  • Rapid globalization in the marketplace
  • Fast-cycle logistics
  • Emergence of the Internet &
  • e-commerce
slide3

Express Delivery

  • Express delivery services consist of:
  • The expedited collection, transport, &
  • delivery,
  • Of documents, printed matter, parcels,
  • and/or other goods,
  • While tracking the location of, &
  • maintaining control over, such items
  • throughout the supply of the service
slide4

Life Before FedEx

  • Have you ever used express delivery?
  • What was it like to get a letter,
  • document or goods delivered rapidly,
  • securely and on-time?
slide5

Express Delivery Industry

  • Express Delivery
  • Industry has become
  • the leading facilitator
  • of trans-continental
  • trade
  • International air cargo
  • accounts for about 2
  • percent of the tonnage
  • moved, but over 40
  • percent of the total
  • value of those goods
  • For every $1 spent on
  • express transportation,
  • companies can save
  • $1.50 in warehousing
  • & inventory costs
slide6

U.S. Experience – Memphis

  • Approx. 53,000 direct and indirect
  • jobs
  • Since early 1980s, over 130 foreign-
  • owned firms from 22 countries
  • employing 17,250 workers
  • Companies such as Nike, Apple
  • Computer and Disney established
  • based on proximity to FedEx
slide7

U.S. Experience – Memphis

  • From 1995-2000, company relocations
  • and expansions generated
    • - 10,000 new jobs
    • - Over 12 million square feet of new space
    • - Over USD 710 million in new investment
  • Economic impact on the surrounding
  • region from 1995 - 2004 is estimated
  • at USD 90 billion
slide8

What Does a

Modern Economy Need?

  • Philips Semiconductors, Inc.
  • business need - Consolidate &
  • centralize international supply chain

- Customers frustrated due to

consistently late shipments

- No visibility of goods in transit due to

multi-carrier network

- Growing pipeline of inventory due to

extended transit time

slide9

Philips Semiconductors, Inc

  • Source plants spread over 17 countries
  • Each plant had different shipping
  • operation requiring Philips to
  • manage a network of 30 airlines, 6
  • customs brokers & 8 freight carriers
  • Fragmented supply chain meant a 2
  • week total transit time
slide10

Philips Semiconductors, Inc

  • Information about product in transit
  • incomplete & delivery schedules
  • unpredictable
  • Customers demanded more speed &
  • reliability
  • Began stocking buffer supplies in
  • additional depots near customers
  • adding inventory
slide11

Philips Semiconductors, Inc

  • What other industry could respond to this???
  • The FedEx Solution:
  • One-stop transportation, warehousing & distribution network with extensive international capability
slide13

Today’s Marketplace – Global

  • SMEs want to reach
  • new markets
  • Multinationals want to
  • ensure efficiency
  • Explosion of
  • e-commerce
    • - Internet-enabled
    • commerce in US to
    • reach USD 3 trillion in
    • 2004 (both B2B and
    • B2C)
slide14

FedEx Hub-and-Spoke System

  • FedEx collects & transports shipments
  • from the door of the shipper to sorting
  • hubs located in the U.S., Europe& Asia
  • Shipments are unloaded, sorted &
  • transloaded w/in 4 hours onto outbound
  • planes for a time definite, customs-
  • cleared, delivery to the door of the
  • recipient as early as 8:am the next
  • business day
slide16

Benefits of the Express Delivery Industry in ASEAN

  • In 1999, approx. $50 billion in
  • economic benefits generated from
  • exports, imports, transportation and
  • employment
          • 30 billion in export benefits
          • 20 billion in import benefits
          • Approx. 350,000 jobs created
slide17

Creating the Express Delivery Infrastructure

  • GATS commitments in express delivery
  • services
    • - Remove barriers and limit new barriers
    • - Certainty of existing market conditions
  • Trade facilitation
    • - Partnership in infrastructure development
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