Case Study of Federal Express Logistics Management

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A detailed case study of Federal Express Logistics Management

Submitted to:Meenakshi Negi| Submitted by:Chandan SinhaCharu SinghGagandeep KaurGaurav Sharma|

FedEx is a supply chain company. We are very cognizant of trying to make our customers' supply chain more efficient. But, at the same time, we became very focused on our internal supply chain." - Edith Kelly-Green, Vice President and Chief Sourcing Officer, FedEx Corporation. "FedEx's Supply Chain Services represents the best of the best and the organization has set an example ... for other companies to follow." - Bo Anderson, Executive in Charge of Worldwide Purchasing, GM

1.| Introduction| |
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Introduction
FedEx Corporation, originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee. The name "FedEx" is a syllabic abbreviation of the name of the company's original air division, Federal Express, which was used from 1973 until 2000. FedEx Corporation is a Delaware corporation, incorporated October 2, 1997. FDX Corporation was founded in January 1998 with the acquisition of Caliber System Inc. by Federal Express. One major change affected Federal Express. In January of 1998, Federal Express changed to FDX Corporation.With the purchase of Caliber, FedEx started offering other services besides express shipping. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited shipping provider; Viking Freight, a regional, less than truckload freight carrier serving the Western United States; Caribbean Transportation Services, a provider of airfreight forwarding between the United States and the Caribbean; and Caliber Logistics and Caliber Technology, providers of logistics and technology solutions. FDX Corporation was founded to oversee all of the operations of those companies and its original air division, Federal Express. Federal Express is an express transportation company, founded in 1973 by Frederick W. Smith. During his college years, he recognized that the United States was becoming a service-oriented economy and needed a reliable, overnight delivery service company designed to solely transport packages and documents. He wrote a Yale term paper on this idea, and received a ‘C’. His professor thought it would never work. Fortunately for Frederick Smith, he didn’t take it to heart and ended up building that company he dreamed of. He found investors willing to contribute $40 million, used $8 million in family money, and received bank financing. He started Federal Express with over $80 million, making it the largest company of its time ever funded by venture capital. Background

Federal Express became successful so quickly because all their competition became weaker at the same time. They built a super-hub in Memphis, Tennessee, where all packages from the United States would be loaded on the correct transport and shipped out each night. As of April 2010, Federal Express has over 143,000 workers worldwide, and delivers more than 3 million express packages to 200 countries daily. FDX Corporation now includes Federal Express, Roadway Packaging System (RPS), Viking Freight, Roberts Express, and Caliber Logistics. Even though FDX owns all these companies, Federal Express still remains independent. FDX’s strategy is to corroborate on selling and synergies for all FDX companies, but run operations separately and keep each company’s strengths and markets separate. Therefore, some information will be about FDX, but most will be for Federal Express as its own company. For example, Frederick Smith, the founder of Federal Express, is now the Chief Executive Officer of FDX. Federal Express’ CEO is currently Theodore Weise. In January 2000, FDX Corporation changed its name to FedEx Corporation and re-branded all of its subsidiaries. Federal Express became FedEx Express, RPS became...
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