1 / 17

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

limei
Download Presentation

History of FedEx

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. 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)

  2. 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

  3. 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

  4. 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?

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

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

  12. Philips Order Management System

  13. 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)

  14. 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

  15. 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

  16. 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

More Related