Frederick W. Smith created a vision to specifically design a system to send shipments overnight. in 1973, Federal Express was created and became the premier carrier for shipping goods and products nationwide. Smith turned his company into the world’s largest cargo fleet at rapid pace setting the standard for the express shipping industry it established.
FedExpress is a global force in the shipping industry serving more than 220 countries and territories. The company is continuously evolving and expand markets demonstrating the company’s commitment in providing express shipping everywhere.
FedEx is a massive system that employs more than 425,000 employees consisting of contractors, workers, aircraft employees and operations personnel, ensuring its reliability its commitment providing timely delivers across the globe. FedEx is a diverse company that is founded on “people-first” philosophy as an everyday business practice. Among with diverse workforce, the company recognizes their employee’s by reinforcing through recognition and reward programs. The company provides programs to employees to boost employee’s morale and instill drive to provide excellent service and customer satisfaction.
The FedEx company structure is operated by a Chief Executive Officer, Chief Information Officer, Chief Financial Officer, President and Vice President. Many others in the organizational structure include Market Development, VP of Corporate Communications, General Counsel and Secretary. David J. Bronczek is president and chief operating officer of all FedEx operating companies. He is also co-president and co-CEO of FedEx services which provides sales, marketing and information technology, communications, customer service, technical support, billing, and collections services for U.S. customers of major FedEx business units and certain back-office functions that support FedEx companies (FedEx, 2018). Frederick W. Smith still remains his position as chairman and CEO of FedEx Corp providing strategic direction for all FedEx Corp. and its operating companies, including FedEx Services, FedEx Express, FedEx Ground, and FedEx Freight (FedEx, 2018).
The FedEx worldwide headquarters is centrally located in Memphis, Tennessee along with additional headquarters in Canada, China, Florida and Europe. FedEx also provides more than 1,800 locations between the United States and Canada connecting markets that comprise 99 percent of the world’s gross domestic product. FedEx Ground has nearly 600 facilities, including 15 hubs located in New Jersey, Florida, California, Texas and Illinois. FedEx Ground is headquartered in Pittsburgh, Pennsylvania and distributes 7.5 million packages daily.
The FedEx hubs process over 10 million packages each night through its entire global distribution system and sorts packages at a rate of 0.5 million per hour, and deliver to destinations around the globe. The company’s hubs utilize 670 aircraft carriers and 185,000 motorized vehicles along with air and ocean freight forwarding services to sort and distribute packages flowing from surrounding areas, as well as points across the nation and around the globe.
FedEx possesses a strong foundation of company values which makes them one of the most reputable companies in the world. The company has strong Human Resources division that is managed so that the interest of all employees are considered (Smith, 2001). The company has a tradition of training locals to help drive businesses forward and also has a tradition of soliciting employee feedback with anonymous surveys and a guarantee that employees may voice concerns with fear of retribution. FedEx implements award programs and employees are rewarded with benefits (Lyons, 2005). FedEx definitely puts the employees first by offering part-time and full-time benefits, tuition reimbursement, life insurance, retirement planning funds, employee discounts from wide range of companies, medical and dental care, reduced shipping rates and corporate travel discounts (Lyons, 2005). FedEx believes that Human Resources in just as important to the company structure for the fact any actions taken from human resources can affect workers throughout the organization which can hugely impact employees, thus, significantly affecting profits.
As the leading company in logistics and delivery, FedEx uses demographic segmentation strategies to attract a market of customer with similar needs and wants. FedEx implements strategies to target specific customers with their valued services. The company’s e-commerce and business is just a few of the unique services that allows customer the convenience of receiving faster, efficient service than its competitors.
FedEx continues to gain competitive advantage on investments in infrastructure, employee development and customer value in its operations. FedEx activities include inbound and outbound logistics, operations, marketing, service and sales. Its supporting activities include human resources, technology and procurement. Advanced technological systems have helped the company develop connect with other FedEx companies and efficiently serve its customers. The company offers time certain delivery services and provides package delivery options, in store services, online services, and business solutions which give the company a competitive leverage and helps the company in attracting and retaining a wide customer base.
FedEx inbound logistics begins when packages are picked up from various locations. Value is established when customers are able to received their packages by truck or planes to reach their destination. Delivering packages on time if the more than likely the highest value of creating activity for the company. FedEx invests a lot of money in advertising, sales, and marketing continuously works to develop ways to add more value to its customers.
FedEx has profited $65.5 billion in revenue with a record net income of $4.6 billion, which shows a steady increase in quarterly dividend for the 2019 fiscal year. FedEx Express posted solid growth and is on track to reach the company’s target to improve operating income by $1.2 billion to $1.5 billion in fiscal 2020 versus fiscal 2017 assuming moderate economic growth, stability in global trade, and current accounting rules and tax laws (FedEx, 2018). FedEx has managed to delivery at record volumes during the holiday season and high service levels due to flexible networks and year-round planning. FedEx freight margins are steadily increasing due to an improved industrial business environment and a better balance of volume, pricing, and capacity (FedEx,2018).
Leading innovation technologies and an extensive portfolio of business solutions allows FedEx to respond to marketplace changes quickly and efficiently. Their successful ability to handle average daily volumes that can double during its peak is a feat that competitors can accomplish on global scale as well as FedEx can (FedEx, 2018). FedEx continues to grow their retail network to make it more convenient for consumers. Although the company is not difficult to imitate, it is next to duplicate their global network. Hub expansion and technology investments make FedEx the most highly automated network in North America and positions the company to stay ahead of the competition in terms of handling e-commerce growth, revenue market shares, and utilization of investments to moderate capital spending (FedEx, 2018).?
