Presented By - Aayushi ChhabraShraddha KhandelwalSonali DabasTanul KhoraniaVishal Mishra

TAPMI School of Business

GROUP NO. - 8

CoverageBrief History Old Supply Chain

About FedEx New Supply Chain

Mission and Goals Competition

What Is FedEx’s Business Model Success Mantra

Services & Segments SWOT Analysis

Change Risk Taking

FedEx: A Concept that Blossomed into an

Industry• FedEx (FDX) was the brainchild of Frederick Wallace Smith in

1965. An economics student at Yale University, Smith wrote a

term paper in which he came up with the idea for an

overnight delivery service.

About FedEx• Founded by Frederick Wallace Smith in 1971.

• Headquarters located in Memphis, Tennessee.

• Daily Volume of more than 7.5 million shipments

• Workforce of more than 4,00,000 team members worldwide

• Financial Year 2016 Revenue: $50.4 billion• Countries and Territories Served: More than 220

CEOFrederick Wallace Smith

Missions & Goals

FedEx Corporation will produce superior financial returns for its shareowners

by providing high value-added logistics, transportation and related business

services through focused operating companies.

Customer requirements will be met in the highest quality manner

appropriate to each market segment served. FedEx will strive to develop

mutually rewarding relationships with its employees, partners and suppliers.

Safety will be the first consideration in all operations. Corporate activities will

be conducted to the highest ethical and professional standards.

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 get 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%.

Cont... FedEx provides a portfolio of transportation, e-commerce,

and business services through wholly owned subsidiaries.

Fortune ranked the company 12th for the “world’s most

admired companies” for the 14th consecutive year.

Services & Segments FedEx Office – It provides reliable service and access to printing and shipping.

Services include copying and digital printing, professional finishing, signs,

computer rental, and corporate print solutions.

TNT - The company offers road and air delivery services in Europe, the Middle

East and Africa, Asia-Pacific and the Americas. FedEx and TNT coming together

to connect people to more opportunities.

FedEx Supply Chain – It provides integrated solutions to help supply chain

management become a competitive advantage for customers.

FedEx Trade Networks – It provides a full suite of integrated air and ocean

freight forwarding solutions tailored to customers’ needs.

FedEx Cross border - An international shopper who wants to purchase from

websites that don't offer global shipping, FedEx Cross Border has the solution for

that shopper.

FedEx Ground – It gives customers dependable business-to-business delivery —

or convenient residential service through FedEx Home Delivery® and FedEx Smart

Post®.

GENCO - A FedEx Company is a leading supply chain solution provider specializing

in Product Lifecycle Logistics®. It was founded in 1898. A leader in reverse

logistics with millions of returned items processed annually.

FedEx Custom Critical – It provides time-specific, door-to-door, same-day, and

next-day delivery of critical shipments, including urgent freight, valuable items,

and hazardous goods, via air and surface expedited services and truckload

brokerage.

Change Change happens, but managing change to your advantage is another matter.

"A capacity to change is indispensable. Equally indispensable is the capacity

to hold fast to that which is good," noted cold warrior John Foster Dulles.

Since it began operations in 1973, Memphis, Tenn.-based FedEx has shown

an ability to change without losing touch with its essential mission. External

conditions such as technology and competition have shifted enormously

during that 28-year period, yet FedEx has been able to accommodate them

all, introducing new services and systems alike without the wild fluctuations

in growth, profitability, efficiency or employee morale that have afflicted

most companies.

The most significant recent change at FedEx was a massive

reorganization announced Jan. 19, 2000.

The company consolidated four of its five operating subsidiaries

under the FedEx brand name and moved most of its IT, sales

and marketing staff into a new company, FedEx Corporate.

At the same time, FedEx realigned the relationships of these

companies to one another, aiming to provide customers with a

single point of access to sales, customer service, billing and

automation systems.

Old Supply Chain

New Supply Chain

Service• Review and analysis of supply chain

• Order administration

• Shipment planning and management

• Freight bill audit and payment

• Invoice and report generation

Competitor

UPS History• Started in 1907 by 19 year-old Jim Casey

then called American Messenger Company.• Became Unite Parcel Service of America in

1929 and began shipping packages on commercial airliners.

FedE

x• 50,000 Delivery Trucks

• 625 Cargo Planes

• $47.45 Billion USD

• Apple use FedEx for

handling its e-commerce

shipments.

UPS

• 88,000 Ground Trucks• 583 Planes• 58.36 billion USD• Amazon uses UPS

much more frequently then FedEx.

The Competition

• Price competition

• Information Technology

• Service Expansion

• Logistic Services

Success Mantra

COSMOS -

It is a computerized package tracking system that monitors every

phase of delivery cycle at Federal Express.

Hub & SpokeIt is a centralized integrated

logistics system designed to

keep cost down. Hub and

Spoke distribution centers

receive products from many

different origins, consolidated

the products and send them

directly to destination.

GOCC - Global Operation Control Center

FedEx has control centers in London,

Paris, Toronto & Hong Kong but

much of the action happens in GOC

of Memphis, Tennessee.

24 hours a day, 365 days in a year

they monitor system for potential

disruption any problems from a jet

fuel supply issues in Asia to a

volcano in the Alaskan Island to

earthquake in Europe.

In urgent situation the GOC has the

authority to act fast & make crucial

decision.

SWOTStrength

Network in more than 220 countries

and more than 4,00,000 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

Weakness More dependence on US market

Since this is a competitive segment,

the market share growth is limited

Less competitive ground shipping

Opportunities

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

Vulnerable to increasing

reach by major competitors.

RISK TAKING In the 1970’s FedEx was loosing one million per month because of fuel costs. Fedrick.

Wallace Smith gambled the company’s last $5000 on a game of black jack and literally

against all odds he won.

Smith stashed his winnings $32,000 in the company’s bank account which bought the

company some time to recover form the debt. Over the next few days he secured 11 million

in investment capital.

Some have the view that he did nothing groundbreaking and he just got lucky. But in

another sense, luck plays a role in the beginning of so many companies. That luck could be

getting new investors (which Smith also did) or hiring someone who turns out to be a rising

star.

In that sense every business owner takes a gamble at one point or the other.

THANK YOU