History of FedEx
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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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History of FedEx

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History of fedex

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)


History of fedex

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


History of fedex

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


History of fedex

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?


History of fedex

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


History of fedex

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


History of fedex

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


History of fedex

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


History of fedex

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


History of fedex

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


History of fedex

Philips Semiconductors, Inc

  • What other industry could respond to this???

  • The FedEx Solution:

  • One-stop transportation, warehousing & distribution network with extensive international capability


History of fedex

Philips Order Management System


History of fedex

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)


History of fedex

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


History of fedex

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


History of fedex

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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