Express Transport And Logistics Industry Commerce Essay

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Federal Express is a global express transportation and logistics company that provides global shipping customers, is a single source for logistics and supply chain solution. It was founded in 1973 by Frederick W. Smith. Since its inception, FedEx express delivery industry has pioneered. Express delivery company focused on the main business and customers around the world overnight delivery service is provided. However, old economy businesses and the new FedEx customers forced myself at night delivery service 'to change the location for the economy' one stop shop for business requires complete logistics'. Company like General Motors became major groups logistics service provider.


During the late 1960s, Frederick Smith (Smith), an idea, incidentally start an airline courier company. This period, it was common practice during the American, United or Delta Airlines as a commercial vehicle as a package to send goods. The exercise because many passenger airlines deficiencies generally during the night and day flight was operated. In addition, freight forwarders (the company's take from the airport responsible for packages destination address) usually did not offer home delivery. Smith is an airline courier company that started all these problems need to be felt. During his college years, he admitted that the United States had become a service-based economy and a reliable, overnight delivery service for packages and documents entirely transportation design company is needed. Wrote a Yale term this idea, 'and' C 'grade achieved. His professor thought it would never work. Fortunately for Frederick Smith, he did not take to heart and Smith found that for investors buil ding the company for $ 40 million, 8 million dollars in the family used the money ready to contribute over dreamed of, and bank received funding. But with 80 million dollars he started Federal Express, the largest company of its time doing sometimes funded by venture capital.

The transport and logistics industry expressed FedEx family collectively are able to compete. FedEx's selling strategy is for all FedEx companies to foster cooperation, but the action and run separately in each company's strengths and markets are different. Today, FedEx offered by a global express delivery services, small parcel of land distribution, including low-truckload freight delivery and global logistics, supply chain management and electronic commerce resolution. Federal Express is the world's largest package delivery company.

FedEx in the United States in the night market for labor division customers, pricing and improving the quality of services with the sole focus "started its operations. Since then, the key document for the entire North America and freight services has more than 212 countries and abroad for.

[Visionary Leadership:

Founder of FedEx Mr. Frederick Smith recognized that American Economy is moving towards being a Service economy. He identified the Gap existing in document and goods delivery, prepared a business plan and started the first overnight delivery service thus becoming the pioneer in the express delivery business.]

Federal Express Corporation was visionary leadership Express Transport and Logistics with a source of discrimination in the industry to FedEx became the first mover: the complete supply chain management control of its ability to help.

FedEx firsts ...

Overnight package delivery company dedicated to 

Offer next-day delivery by 10h30

Offer Saturday delivery

A fixed time freight service offered

Money back guarantee and free from performing services evidence that a global expansion of its network

Document tracking enabling customers to know the exact status of their consignment.

Fedex leadership recognized the need for Mergers and Acquisitions very early in the industry. They felt that customers' needs are diverse and requires different business models to handle them. FedEx tailored its' businesses to satisfy this need.


Use technology resources for the company and has the ability to supply its own difficult for competitors to match service.FedEx standards for the company has been largely successful because of their technical progress. Better customer service and quality to them that any technology company is allowed to have unique. Any company with speed and precision that Federal Express package was offered was the night of delivery.

ission Statement

FedEx service mission statement of "for better financial benefits for stockholders by providing high value, production, operation of companies through focused logistics, transportation and information on related services. One of the highest quality of customer requirements to the appropriate market area methods will be met. FedEx your employees, partners and suppliers to strive to develop mutually beneficial relations. shall protect all operations have already considered. the highest ethical and professional standards of corporate activities "organized will.

The mission statement indicates that FedEx has a clear focus. (1) The main focus is to bring back the stockholders. (2) above the value they add just one other thing to take place more emphasis will be beyond their service. (3 operations) supplies their attention, will transport and related information. The mission statement to focus enough to diversify example, food products, yet vague enough to allow growth in those areas all have to FedEx.

Federal Express Five-Point Strategy

Federal Express has five strategies that govern business strategy. Improve service levels for these, unit costs are low, international leadership to establish and maintain profitability, is close to such customers, and retain people-Service-profit philosopher.

Original works unique FedEx operating strategy - and simultaneously - on three levels.

 Collectively combat   As a brand in the world by standing and speaking with one voice.

 Operating independently   To focus on our independent network by specific customer needs.

 Collaboratively Management   To work by our employees, customers and maintain loyal relationships with investors.


People: We value our people and promote diversity in the workplace and in our thinking.

Service: Our absolutely positive spirit in the heart of everything we do puts our customers.

Innovation: We encourage inventions and services and technology that the way we live and work must improve.

Honesty: We conduct, finance and services, honesty, efficiency and reliability to take.

Responsibility: we safe and healthy environment for the communities we live and work champion.

Loyalty: We respect our people and FedEx, customers and investors gained confidence every day in everything we do,

(B transportation) and logistics infrastructure within FedEx Corporation

FedEx 7 of which the first night, eight packages started his campaign by sending one employee to another prosecution had addresses. Company since day one to deal with every surprise has 9.8 million shipments.

FedEx's Infrastructure Overview:

Handling 9.8 million shipments per day

More than 700 aircraft,

Lift capacity of 12 million kg per day

More than 220 countries through 375 airports serviced

Permanent staff strength of more than 140.000 all over the world

500,000 calls were dealt with professionally

Purple Promise of time with this new infrastructure and has been linked with, "I make every FedEx experience outstanding" with collection and delivery of each shipment is received.

When a highway truck physical objects most frequently travel routes usually taken. But as more vehicles traversing the highway, and are now in the form of trips, packages, are long lost, bad, or start to come at all. The solution, faster, with their own hardware and infrastructure and more attention is being entered carriers: FedEx, UPS, airborne express, and so on. These new carriers to address speed, tracking, billing, quality of service and automation. He is also the final distribution system, except that travel through the center of town have not been prepared, and the road is not in the other hand. And finally, they offer alternative services to make life easy for many of shipper and recipient both.

Home Delivery Infrastructure:

Three centers are being constructed that Dallas, Cincinnati and Hagerstown, MD, Memphis, Tamil Nadu is the fourth center. Center expansion project will expand the existing 30 centers, it's almost the end of 2010 fiscal year the company's average daily package volume capacity will double to center.

Expansion project is for consumers by FedEx shipment online retailers would support a rapid development. New Florida satellite distribution center pompano near Fort Lauderdale, in between two existing joint three times the size of facilities must, and almost 356 employees and independent contractors, an increase of 200 from the current joint number one workforce will open with employees and independent contractors.

FedEx's smart post-processing and distribution of the fastest breed technology ensures package. The technology packages in the process of distribution provides shipment visibility, while they are on the way to your destination. The packages are always knows where and where they are going next enables.

Advanced control systems, sophisticated automated sorters, and the state - of-art data collection devices FedEx detailed information about every package enable to take. And highly skilled team fully supplies hundreds of thousands of packages a day well equipped.

Customer Equipment is located on secure web site, customize each client's unique needs are. These devices use information for timely distribution, logistics analysis, appeared extension, and billing details, as required to properly package delivery strategy planning packages offer the ability to make the necessary reports.

As a leader in package delivery industry, FedEx provides data and an ongoing basis and to examine the need to enhance logistics operations reporting.


Information technology

Late in the 1970s, FedEx use IT to simplify their business processes seen much benefit. Smith understood that speed, reliability and customer service an essential factor for success in the global transportation industry, but it was too early.

IT Human Resources

FedEx place interactive video instructions (IVI) that the employees themselves to take advantage of slack time at any time of day the train was allowed to. Program used for training and exams (FedEx employee in the customer service knowledge was tested twice a year).

IT in customer service

FedEx also use a client that monitor various aspects of transactions to improve its customer service. To achieve "100% accuracy on all transactions, quality and customer satisfaction 'was. A system used was undamaged package FedEx service quality index (SQI) that" every part of a deal as was quantified? Customer was billed right? "

Internet access

1990 threw open the decade with significant opportunities for FedEx widespread use of the Internet. Since the company already has an EDI-based system on which it had spent a lot of money, FedEx for the Internet and decided to use a combination of EDI. One example was applied to the purchase of products. FedEx one product from a company Ariba. Phone purchased on an intranet-based Ariba requisitioning system was FedEx. System is so set that FedEx suppliers catalogs can be accessed by any employee that could maintain a database.

The company's website more than 63 million unique visitors per month and hosts 24 million package tracking requests daily average handles. More than 2 million customers every day with the company associated electronics, electronic transactions and nearly two scores - more than five million shipments made daily thirds FedEx. FedEx world's largest computer and telecommunications network of more than 75,000 computers and thousands of hand - held computer networks that operate and track shipments recorded. FedEx has more than 20 million data center information management system, daily transactions, processes more than any other U.S. company.

Information technology has played an interesting role in FedEx's strategy. As part of its business using a large, FedEx an almost entirely new group of people has reached. It has maintained its reputation and its business increased at the same time. The global market for customers has created more opportunities. Now they can request the service pay for that service, and track packages online. FedEx is now need to talk to customers. In so far as they need them, so that twenty-four hours per day are free for seven days per week. This is due, FedEx has changed strategy. Now the use of Internet and other technological advances have focused on. Because this is such an important aspect of strategy, strategy for implementation was almost immediate. Compete with other major businesses in the industry, FedEx customers that can be accessed usin technology service was law. He also provided a service to track the package. As they service, developed its reputation and business.

FedEx has done many things with their value chain of new business development. First they forever for technology and IT supplies that they need to work part communication is recognized. Work easily and efficiently the Internet technology to enable customers and vendors to use as a go between FedEx has developed. For many companies, their customers integrate their Web sites to use FedEx technology is enabled.


Two questions: - branding and business structure 19, January 2000

Using information from case studies and research, critical assessment of the benefits and limitations of mergers and acquisitions (M & A) Global Transport and Logistics Industry Strategy.

FedEx Corporation in 1998 to discuss how to succeed in the acquisition of Systems caliber, and determine whether or not success or failure of the acquisition of Systems caliber was it?

Transport and Logistics industry mergers and acquisitions

Transport and Logistics (L & T) sector privatization, a significant level of finance raising and mergers and acquisitions activity is characterized by. Transactions are often complex and regulatory environment, competition issues, affected by or contracted for needed support subsidy action.

We just companies, ports and airports, many successful private-sector privatizations groups have continued to grow through acquisitions made and seen. Other areas in the world in the ongoing consolidation among operators and mail, parcels, freight forwarding and logistics contract with Arenas. Postal organizations and the historical and national railway companies have been oriented to cross the range now and focus more liberal regulatory regime operated by the commercial demands of the market opportunities.

Transport and Logistics

Transport and Logistics (L & T) industry creates the basis for global supply chain. Postal operators as major logistics providers in T & L industry plays a major role as major stakeholders. Changes in recent years the campus of a comprehensive national pre-equipment and financial services as multinational providers emerge has posted. These institutions through developing market liberalization and privatization of mail delivery in its main markets to face new competition.

Same time, be put together before, their experience in processing may be able to exploit year postal, transport and national and international mail delivery and to develop the logistics of providing a broad palette-based services, direct mail activities and with the flow upstream package delivery and payment services. In addition, many existing logistics and express companies well beyond the simple delivery of services has expanded and now manage all aspects of supply chains are doing. This is an industry trend that continued rapid customer service in all parts of the world the face of the focus has changed.


Mergers and acquisitions: three types

Merger: a deal where two companies on a relatively equal basis as they integrate their campaign resources and capabilities that together create a strong competitive advantage agrees.

Acquisition: a contract where a firm and its portfolio of businesses more effectively within the company's acquisition by a subsidiary of a major potential use of intention and the company buys.

Acquisition: the acquisition of a takeover where the target firm, the firm did not solicit bids.


Achieving success




evaluation of target

Too much


Large or

extraordinary debt

Inability to

achieve synergy

Managers overly

focused on acquisitions

Too large


market power

Overcome ent

entry barriers

Lower risk

compared to developing new products

Cost of new

product development

Increased speed

to market



Avoid excessive



Reasons For


Acquisition profit

Growing market power: the acquisition of an industry to reduce competitive balance

Entry barriers to overcome: Acquisition Access to the "can start up an expensive obstacles to overcome" economic Ugly

Costs and risks of new product development: buy up reduces the risk of setting up business ventures

Allows for increased speed in the market: is closely related to entry barriers, market entry in a timely fashion

Diversification: Quick way to move business experience in the industry and the firm currently lacks depth

Scope will compete: using firm acquisitions may limit their dependence on one or a few products or markets

Problems with acquisition

Only one "financial team" to gather and 'decision' (two teams: one financial and one - where the organizational team organizational says, "Yes" or "No" should be

Integration difficulties: difficult to separate financial and control system integration companies can

Inadequate target evaluation: "Winner Curse bid" overpay for acquisitions, the company

Large or unusual credit: expensive, heavy debt burden on cash outflows can create

Synergy inability to obtain: Justifying acquisitions can increase expected profit estimate

Multiple generations: to acquire the management expertise required is not unrelated business

Generation of managers focus on the acquisition: the manager's acquisition strategy through independent firm assess the value of the results may fail

Very large: innovation and flexibility reduces a large bureaucracy

FedEx Corporation has acquired 31 while taking stakes in 3 companies. FedEx Corporation has 22 divestitures during this period.


Three questions: - Events in January 2000 leading to restructuring

Using appropriate examples from FedEx Corporation, critically evaluate FedEx's financial and non-financial performance in the context of developments in the "Internet market and e-tailing" up to the January 2000 reorganization.

Financial Performance Analysis

FedEx has an impressive performance record since many years. Particularly, in 1998 the revenue [$15.9 billion] of the company has grown 15 percent when comparing with the revenues in 1997. Over the past 5 year period of time, Sales have been growing steadily. But, on the other hand, the net income seems that not very impressive when we compare with the sales. But, the truth was, due to the sudden increases in cost of the fuel it has been refused in 1997. In contrast, in the year of 1998 the net income was rapidly grown from $ $200,000 to $500,000. As of the FedEx reports, it is because of acquisition of the subsidiaries and from reduction in operating costs.

FedEx's financial statements shows that its assets have not been utilized well as other firms in their industry, but their profitability is better than other industry firms. Still they must decrease selling and administrative expenses while increasing sales. Future assets possibly and should be invested in the international market and new businesses, while still investing a decent percentage for technological advancements.

The financial ratios for FedEx clearly show that a safe amount of debt, a health profit, have outstanding sales and the leader of the market in this industry. Thus, except in the year 1997 where costs of the fuel made a lot of trouble to this company, but, these statistics show an increase growth of ratios over the period of time.

Disintermediation is the term used to denote the dismantling of supply chain intermediaries like whole sellers, retailers etc. Businesses have direct contact with customers and vice-versa. This revolution has been brought about the advent of internet retailing called otherwise as e-tailing. FedEx has been a late entry into this field but has made significant in-roads ever since it ventured into e-tailing. This market is lead by UPS.

Online holiday shopping, which accounted for $650 million in 1997, grew to roughly $4 billion over the holiday season of 1999. At that time, FDX handled shipping for only 10 percent of all goods sold online, compared to the 55 percent handled by UPS, which had forged alliances with the likes of e-tailing giant

The e-commerce market all over the globe would increase up to $128 billion, including $18 billion in "e-tailing," or business-to-consumer sales, and about $110 billion in business-to-business transactions [Forrester Research]. Every year, online spending is on the rise with over 1 million new customers getting added to online marker. Therefore, According to the Forrester estimates, Only for the Online consumers from many countries would spend about $5 billion. Which is about trice than comparing with the amount in 2009, this means that bringing the households for shopping online over 18million.

 FedEx has realized early in its journey that technology shall play a major role in its growth. It has made significant investments in acquiring state of the art technology and has equipped its employees with necessary skills to handle modern equipment. COSMOS is an ideal example of it's commitment to use technology to bring about customer satisfaction. When we look at the reports of FedEx since two decades, the company was completely involved the information business. According to Smith, he tried to kept attention towards knowledge such as price, estimated time of arrival, destination, present whereabouts , cargo's origin, and cost of shipment is also, most valuable aspect as make sure safe delivery. At the same time, Mr. Smith insisted develop a information systems network of state-of-the-art; a sophisticated combination of laser scanner, bar codes, software, and electronic connections-be erected alongside the air and vehicle networks.

Non-financial Performance Analysis

FedEx being a global player has always had the economies of scale in its operation. They provide services that cover almost every major town in the world. The infra structure available helps it to seamlessly integrate its business across different time zones. It has a strong brand image that is globally recognized for quality service.

FedEx offers service in the entire range of transportation and logistics business. Powered by strong management commitment, FedEx has forged many useful alliances that have helped to grab significant market share in all the sectors of its operations. Strategy to operate each business independently helped FedEx to cater to that specific market.

Rising fuel prices act as serious impediment affecting FedEx profitability. Labor disputes are another area of concern for FedEx.

With deeper customer base, broader global reach, FedEx is strongly positioned to reap the benefits of internet and e-tailing markets.