Explaining FedExs Position in the Logistics Sector

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Logistics is about managing the flow of goods, information, and other resources between the point of origin and the point of consumption so as to meet the customers consumption demands in a regular cycle. Logistics involves the integration of information, warehousing, managing and handling inventory, transportation of the goods and services. It is a mode of supply chain to add value to time and space utility.

Logistics sector revolves around logistics companies, supply chain management, transportation, warehousing, reliability and business. Logistics involve logistics providers, freight forwarder, freight companies, trucking companies, moving companies, shipping companies, Freight carriers of all the three modes- air, water and ground. They include air carriers, ocean freight, ship lines, rail freight, third party logistics providers.

The major players in this sector in the world are DHL, FedEx, ARAMAX, Choice Logistics, Purolator Courier, TNT.

USPS is a customer as well as a competitor of FedEx while UPS is a primary competitor.

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The global logistics industry is estimated to be worth USD 300 billion. US still has about one-third of the world market, but most of the big service providers are centered in Europe. Major characteristics of global logistics industry are:

High costs of operations

Low margins

Infrastructure bottlenecks

Paucity of talent

Client demands for investment in technology

Demand for providing one-stop solutions meeting all the client needs

Mergers and acquisitions providing consolidation

Indian logistics industry is still in the growing phase and has immense potential for growth. It is characterized by

Low demand

Poor infrastructure

High costs

Government Regulations

However, with the robust GDP growth, globalization, FDI in logistics, increasing government support, it is likely to grow.

In India, FedEx has its subsidiary Blue Dart Express Ltd since 1984. The major services catered by them include; E-shipping Tools, Track Dart, Mail Dart, Location Finder, Mobile Dart, COSMAT II ( computerized On-line System for Management, Accounting and Tracking ), SMART (Space Management Allocation Reservation and Tracking) Ship Dart, Internet Dart and many more.

About the company

FedEx Corporation, incorporated in 1971, was originally known as FDX Corporation. It started off as a logistics company in United States, with headquarters at Memphis, Tennessee. The company began its operations in 1973, and became FedEx in 2000, a name derived from its original division Federal Express.

Today, FedEx employs more than 280000 people and provides services all over the world. It has become world's largest airline with highest number of freight tons flown and stands second when it comes to fleet size. The major subsidiaries of the company are- FedEx Office, FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Supply Chain, FedEx Trade Networks and FedEx Services. Today, it delivers packages to more than 375 destinations in nearly every country every day.

It operates via Hub and Spoke network, with various hubs being located at the various airports all across world and super hub at the airport Memphis, Tennessee .

In 1979, it launched COSMOS (Customers, Operations and Services Master Online System), a centralized computer system which managed people, packages, vehicles and weather scenarios in real time.

In 1980, DADS (Digitally Assisted Dispatch System) was implemented by the company to coordinate on-call pickups for customers, so that customers could schedule pickups for the same day.

It introduced Zap Mail in 1983, a fax service guaranteeing the delivery of up to 5 pages in less than 2 hours. But, later it turned out to be a failure.

In 1986, a service named Super Tracker was introduced, a hand-held bar code scanner which brought parcel tracking to the shipping industry. With the tremendous growth in the volume of the volume of international shipments, Clear Electronic Customs Clearance System was created to expedite regulatory clearance while cargo is en route.

In 1994, FedEx launched Fedex.com, the first transportation web site to offer online package tracking.

In 1995, the company started services to China, and opened an Asia and Pacific hub in Philippines.

In 2000, the company officially dropped the Federal Express name and became FedEx Express to distinguish its express shipping service from others offered by its parent company FedEx Corporation.

In 2001, FedEx Express signed a contract with its largest customer United States Postal Services to transport Express Mail and Priority Mail. In December 2006, FedEx Express acquired the British courier company ANC Holdings Ltd which opened direct route to UK airports. In September 2007, ANC was rebranded as FedEx UK. FedEx Express also acquired Flying-Cargo Hungary Kft to expand service in Eastern Europe.

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Together, we are FedEx - a worldwide network of companies providing customers and businesses with the same "absolutely, positively" zeal for service you've come to expect. FedEx provides direct-distribution services that make it easy to move your goods across borders to customers and retail stores, bypassing distribution centers and cutting fees and time to market. We offer air, surface and ocean solutions to meet your unique needs.[ref7]

FedEx offers comprehensive and strategic supply chain solutions. This provides your supply chain solutions greater efficiency and customer satisfaction.

[ref5]

Use FedEx Ground Tracking to track your ground freight shipments quickly. Enter up to 30 FedEx tracking numbers and check the status of your FedEx ground .[ref3]

FedEx Freight and FedEx National LTL, reliable freight shipping, fast transit freight shipping, economical freight delivery, and more.[ref4]

We provide expedited, special handling and air options for critical freight. [ref8]

Access fedex.com services with a single user ID and password through My Account. You must open a FedEx Freight® or FedEx National LTLSM account before signing up.[ref 6]

We offer you the fastest courier services around the world daily. FedEx Express is your 24 hours solution for the best courier service. [ref9]

A brief about all the supply chain practices in the industry

Strategic viewpoint of supply chain strategy

FedEx Global Supply Chain Services (FGSCS) EMEA is incorporated into Federal Express Europe as a separate division. 

The prime objective of FGSCS is to offer our customers comprehensive and strategic supply chain solutions and management, incorporating FedEx transportation and IT integration in order to support the specific needs of our customers.