FedEx is a leading global provider of transportation, e-commerce and supply chain management services. FedEx companies offer following services: worldwide express delivery, ground small-package delivery, less-then-truckload freight delivery, global logistics and customs brokerage. Other services include trade facilitation and electronic commerce solutions. All of the above services are provided through a portfolio of operating companies: Federal Express Corporation (world largest express transportation company), FedEx Ground Package System, Inc. (second in North America provider of business and residential money-back-guaranteed small-package ground delivery services), FedEx Freight Corporation (largest regional LTL carrier in the US providing next-day and second-day freight services), FedEx Custom Critical, Inc. (American largest surface-expedited carrier offering door-to-door delivery of time-critical shipments), FedEx Trade Networks, Inc. (global transportation and logistics services), FedEx Corporate Services, Inc. (extensive supply chain management solutions). FedEx Express invented express distribution as early as 1973 and till today remains the leader on the market providing rapid, reliable and time-definite delivery of packages, documents and freight within one to three business days. FedEx works in more than 214 countries serving more than 90% of the world gross domestic product through customer-cleared and door-to-door delivery. FedEx's extensive air route authorities and transportation infrastructure combined with leading-edge information technologies makes it the largest transportation company in the world. Currently, FedEx employs more than 134,000 employees operating in approximately 53,500 drop-off loc... ... middle of paper ... ... FedEx has an impressive performance record. In 1998 the revenue was $15.9 billions. Sales are growing steadily for the last five years. However, looking at the net income, not everything is so wonderful. It even declined in 1997 because of the rising fuel costs. Nevertheless, today net income is growing due to acquisition of subsidiaries with lower operating costs and reduction in average costs of the corporation. FedEx needs to ensure those employees are well compensated. It is a service company and employees are critical to its success. Pilots' salaries need to be placed at least at the industry average. The presence on Internet needs to be maintained and e-commerce made profitable and user-friendly. Prices also need to be kept 10% of their competitors' price or find other ways to make sure that customers view their service as worth of higher paying.
Federal Express main products are delivering packages to widespread locations within a short time. In this case study, we would focus our discussion on its most profitable services, i.e. Priority One, Standard Air Service, and Courier Pak (Table 1).
Business depends very critically upon Fed Ex. If Fed Ex had a major disruption to their delivery system, flowers would not be delivered on time, resulting in dissatisfied customers. For example, if Fed Ex employees went on strike, there would be no alternative equivalent to Fed Ex to deliver flowers to customers. UPS, although an alternative, did not deliver perishable products in the same timely fashion as Fed Ex.
John Deere & Company manufactures and distributes agriculture equipment as well as a broad range of construction and forestry equipment. The company is partnered with FedEx in order to maintain the logistics flow involved with the company’s transactions. FedEx is responsible for providing outsourced transportation services to 11 Deere facilities across the US and Canada. The 11 Deere facilities have different service agreements with FedEx in terms of cost and service depending on the type of business unit.
The Competitive Forces are: The biggest competitor is Fed Ex, and they cannot compare. UPS did 2.5 times the volume through its sophisticated delivery machine.
The North American transport system is run by several different agencies, each one having its own important part in making it all run smoothly and efficiently . There are also several policies that have been put in place to keep the transportation system working for the good of everyone. The agencies involved keep very good records of all the types of transportation that make up the system, which makes it easy for anyone to be able to see all the different statistics associated with the system. The Freight broker business is another important part of the transportation system, the following paragraphs will tell how all these things work together.
UPS is the largest parcel delivery service in the world. They also help their customers its customers with supply chain management, logistics, and financial services. UPS used to be a trucking company with technology, now it¡¦s a technology company with trucks. One of the UPS¡¦s key success factors is the way they manage their operations. Their carefully designed network of vehicles, sorting facilities, and hubs combined with their IT system, allows them to pick up 13 million packages each day from 2 million addresses for delivery to over 6 million commercial and residential addresses worldwide with highest levels of reliability, efficiency, and speed. Also the integration of its air and ground operations gave UPS the ability to optimize utilization of its assets while still meeting customer service requirements. Other key success factor is UPS¡¦s human resource management. UPS has lowest turnover rates in the industry and succeeds in developing a portion of its workforce for management positions each year. The company¡¦s unique culture emphasized accountability and efficient execution at every level of the organization.
The first post office in the United States was established in seventeen seventy-five, which makes it the oldest most reliable post service in history. It is a well know fact that in the beginning, this business was called the Pony Express, which began in eighteen sixty. Years later the US Post office has become the largest company that we rely on to deliver our mail. This mailing institution delivers more mail to a larger area than any other delivery service in the world. They are rendering assistance to more than one million people in North America. There are over six hundred thousand employees and in excess of thirty four thousand facilities nationwide. This institution thrives to provide customer service, available products, transport of products, and accessibility to all consumers. The United States Postal Service is a reliable, excellent, and efficient delivery service. They supply a wide variety of convenient products to help with any shipping needs consumers may have.
Federal Express is the world’s largest package delivery company today. They have been successful mainly because of their technological advancements. Technology has allowed them to have superior customer service and quality that was unparalleled by any company. No company was able to offer overnight delivery of packages with the speed and precision that Federal Express did. Although Federal Express remains ahead of its competition today, their advantages over other firms in the industry are slowly diminishing.
FedEx’s strengths as a company include its company culture and workforce (Ferrell & Hartline, 2011). The corporation has always chosen to be innovative in providing the most timely distribution services (Ferrell & Hartline, 2011). For example, their focus on technology that can be installed in at a customers business to create their own shipping labels through Ship Manager (Ferrell & Hartline, 2011).
Besides that, in this competitive society, time is important to everyone. People are increasingly using the internet as a time-saving resource. People engage in numerous activities online, such as e-mail, planning trips, online banking and online research for their good purchases, all of which are easily completed online. FedEx can satisfy the consumer requirement of convenience with its sophisticated online service.
IT management also prepared UPS for BCP-DR to avoid downtime. UPS’s IT infrastructure allowed customisations to incorporate unique functional requirements of customers. UPS also reduced its application development time by reducing rework. It created reusable modular applications. UPS has been very receptive towards the opportunities created by the IT to boost its core business. Even after this UPS was not able to keep up its pace with every valuable system development request. By 2000, UPS had a major share in domestic integrated package delivery services, but had an insignificant share in international, though the international market was growing at a double-digit rate. Therefore, the UPS management decided to allocate IT resources to the most strategic opportunities and preserve as appropriate via infrastructure
UPS is a global parcel transportation company, if we look at the numbers we could say that UPS is the third biggest parcel delivery company in the world.
Northwest Airlines is one of the pioneers in the airline transportation industry and is ranked at the fourth largest air carrier in the United States today. The success of the carrier depends on the quality and reliability of the service at a reasonable price. Close competitors force Northwest to innovate their services by increasing efficiency. This essay will try to examine different perspectives in the services needed to successfully complete the company’s objectives. The analysis will explain historical and financial perspectives that may give a better understanding of the current market trend of the organization.
FedEx is one of the world’s largest freight companies it is based in Memphis, Tennessee and employs more than 290,000 employees and contractors worldwide.
In the following years, Federal Express kept growing and expanding it’s network, now employing over 290,000 workers worldwide, and delivering more than 3 millions express packages to over 200 countries daily.