fedral express

8/3/2019 Fedral Express

1/24

1

EXECUTIVE SUMMARYThis report is an overview of FedEx Corporation which we came across through the source of

internet. We focused on different aspects of what FedEx is, how it works and how much is its

global recognition.

FedEx is the world's largest express delivery, ground small-parcel delivery, less-than-truckload

freight delivery, supply chain management, customs brokerage, trade facilitation and e-

commerce solutions company with more than 145,000 employees, worldwide and delivering

more than 3.2 million packages daily. They command a fleet of 634 aircraft and more than

42,500 vehicles. FedEx offers various international packages and document delivery services to

214 countries, as well as international freight services and also offers commercial and military

charter services. Federal Express has reorganized in an effort to provide consumers better and

more complete transportation, distribution, and logistics products and services. The Federal

Express Corporation, formerly FDX Corporation, now provides strategic direction for six other

companies; each with a key role in the corporations overall operation.

FedEx Express (formerly Federal Express) the traditional global express deliverycompany utilizing air routes and local ground distribution

FedEx Ground (formerly RPS) - North American ground package delivery; expandingfrom business-to-business to business-to-consumer

FedEx Custom Critical (formerly Roberts Express) time-specific, critical shipmentwithin North America and within Europe

FedEx Logistics (formerly FDX Logistics)a transportation management company plustwo regional freight carriers

FedEx Trade Networks provider of full-service customs brokerage, trade consulting,information technology, and e-clearance solutions

Viking Freight western U.S. regional less-than-truckload carrier offering premiumservice

FedEx is best known for its by-line of "when it absolutely, positively has to get there". This is

but one reason FedEx is the leader in the industry. Fred Smith founded FedEx in April of 1973.

Smith incorporated such management principles that have made FedEx an overnight success.

These principles have made FedEx employees show unprecedented dedication to their work and

to their company.

One reason FedEx is a corporate leader is it's an organization filled with individual leaders. It

sets direction and aligns the organization around strategic goals then creates a common vision to

guide organizational behavior. All management is held accountable for a people first attitude,

impeccable service to external and internal customers, and a reasonable profit, which can be used

to reward employees and to improve the company.


2/24

2

FedEx did not become the largest shipping company by chance, they did it by focusing on their

customers needs and making quality in their services a top priority. FedEx uses many different

systems to maintain, monitor, or improve quality.

In 1994 the company became the first international express cargo carrier to receive systemwide

ISO 9001 certification. FedEx becomes the first global express transportation company toreceive worldwide ISO 9001 quality certification throughout its entire system.

In August 2003, FedEx have been re-certified by Lloyd's Register Quality Assurance based onISO 9001 version 2000. Again, it demonstrates their commitment to CUSTOMERS - providinga high performance and consistent international express service and total logistics solutions tothem. FedEx Ground, an operating company of FedEx Corporation, received ISO 9002registration for its U.S. and Canadian network of more than 500 facilities.

FedEx Corporation has been recognized as one of the worlds most respected companies for the

strategic leadership it provides to the independent companies that make up todays FedEx. It has

received huge amount of awards almost every year in various categories such as Most AdmiredCompany, Best Company, Cleaner Vehicles, Education, Green Power, Material Resources,Facilities Management, etc. Not only FedEx Corporation has received such awards FedExExpress, FedEx Ground, FedEx Freight, FedEx Kinkos Office and Print Services, FedEx

Custom Critical, FedEx Trade Networks individually have been receiving a wide variety ofawards almost every year.

FedEx was built upon innovation and it continues to be an integral part of the FedEx culture andbusiness strategy. Their commitment to innovation propels the development of ideas, productsand services that empower their customers to grow their businesses around the world.

FedEx employees are the foundation of its success and the key to its future. FedEx provides asafe, diverse and rewarding environment where its people have opportunities to grow and

succeed. Smith believed that since FedEx was a service organization, its success depended

heavily on its employees. Hence, in 1973, he developed and implemented FedEx's 'People-

Service-Profit' (PSP) philosophy. According to this philosophy, if FedEx took proper care of its

employees, they would provide efficient service to the customers, which would in turn benefit

the company by generating more profits. This philosophy formed the basis of all management

decisions taken at FedEx.

Building an emotional connection with customers takes time and commitment. But even in the

short term, significant improvement is possible. FedEx is a prime example. In just a few weeks,the company saw an increase in its year-over-year business following the debut of a customer-

care program designed to enhance an emotional connection between FedEx and its clients.


3/24

3

FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-

commerce and business services. They offer integrated business applications through operating

companies competing collectively and managed collaboratively, under the respected FedEx

brand. Consistently ranked among the world's most admired and trusted employers, FedEx

inspires its more than 275,000 employees and contractors to remain absolutely, positively

focused on safety, the highest ethical and professional standards and the needs of their customers

and communities.

FEDEX HISTORY

In the late 1960s, Frederick W. Smith, a young businessman knowledgeable of the airtransportation industry, conceived the idea of Federal Express. Upon investigating methods ofairmail movement, he discovered that the Federal Reserve System was in critical need of amethod to rapidly transfer checks among its 36 branches, preferably overnight.

Federal Express was first created to fill this requirement. But in researching this need, itbecame obvious that the overall deficiencies in the nation's air cargo system were so great thatthe company should focus on broader priority transportation needs.

Air express was a cumbersome and time-consuming ordeal. When the airfreight finally toucheddown at its destination, there were surface transportation problems. Speed, reliability, andtracing left a great deal to be desired, and poor security practices resulted in numerous losses.Airline transfers often meant damage, confusion, voids in the system, and generally poor

service.The most critical service problems in the air freight system of the early 1970s were experiencedin medium and small communities across the country. Government regulations at the timelimited the size of aircraft that could be used by a new air carrier, so small jet freighters wererequired. After examining various aircraft within these constraints, the Dessault Fan Jet Falcon20 was found to be the most useful in size and load capacity for a nationwide overnightdelivery air express system.

With modifications that included a large cargo door, the Falcon 20 was converted into a uniquecargo aircraft. The Federal Express version of the Falcon Jet, carrying a load of slightly morethan three tons, was designed as an economical, convenient means of transporting cargo to

airports all over the country.In April 1973, Federal Express formally began operations serving 25 cities. With capitalfunding of over $90 million, it was the largest venture capital startup in the history of anybusiness in the United States. The hub sort facility was completed in May and by the end of theyear, 44 vans were on the road. Employees numbered 389.


4/24

4

During the next several years, the company expanded dramatically, serving more cities,opening new stations, and adding aircraft to the Falcon fleet. A fleet of delivery vansestablished a totally integrated system of customer pickup and delivery, all operated by FederalExpress employees.

However, expansion was hampered by restrictive federal legislation that prevented thecompany from acquiring larger, more economical aircraft. They led the fight to have theserestrictions lifted, and in November 1977, President Jimmy Carter signed a new airline cargoderegulation bill. In January 1978, Federal Express acquired its first 727-100 aircraft, a planecarrying almost seven times the payload of the Falcon. Other 727s soon followed. With the727s available in 1978 to serve cities previously supported by five or six Falcons, FederalExpress service expanded greatly.

In April 1978, Federal Express became a public company by offering over a million shares of

stock for sale to employees and the general public. The following September, shareholdersapproved changes in our Corporate Charter that resulted in a two-for-one split. By December,the stock was listed on the New York Stock Exchange under the symbol FDX.

1981 was the year that Federal Express introduced COSMOS (Customer Oriented Service andManagement Operating System), a computerized package tracking system, and DADS(Digitally Assisted Dispatch Systems), which provided a much more efficient method ofrouting and communicating with couriers. That same year, the company launched theOvernight Letter, an immediate success, and greatly expanded the Memphis package sortingfacility with an addition called the SuperHub.

In 1982, Federal Express implemented "Operation Earlybird"--their commitment to overnight

delivery by 10:30 a.m. throughout most of the country. It was an effective response to customerpreference for earlier delivery and took less than 6 weeks to implement. 1983 was the year inwhich Federal Express attained $1 billion in revenues, the first company to do so in only 10years without the benefit of merger or acquisition.

The expansion of their international operations on a global basis began in 1984 when FederalExpress purchased Gelco International, a small onboard courier operation. This was the first ofa number of international acquisitions that gave the company an integrated global networkserving more than 100 countries.

Another enhancement to their service network was the opening of over 250 business servicecenters (now called Federal Express service centers) across the country in 1983, followed bythe introduction of drive-thru centers (now called mini-centers) in 1985. These centers haveallowed Federal Express to bring their services closer to the customer.


5/24

5

In 1985, Federal Express inaugurated transatlantic service to Europe with regularly scheduledflights to Brussels, the site of our European Hub. With the l986 purchase of Lex Wilkinson, thecompany gained a United Kingdom domestic service and contract distribution system. Asnightly volumes continued to climb, they opened the first of their regional sorting centers inNewark. Federal Express also continued the aggressive use of computerized applications thatyear by installing over 2,000 customer automation devises on customer premises, thus enablingtheir customers to weigh and rate their own packages, print airbills, and generate daily invoices.These devices and the overall customer automation system are currently known as PowerShip.

Reaching a record $3.2 billion in revenues during 1987, Federal Express continued to increaseproductivity and improve the quality of service by phasing in the COSMOSIIB tracking systemwith a device called SuperTracker. The company was named the Official Air Express Carrier ofthe 1988 Olympic Games, signifying their emergence as a truly global logistics network.

Federal Express was granted exclusive air express rights to Japan and flew the inaugural trip on

June 16, 1988. The company averaged a nightly volume of 1,000,000 packages late that yearand continued our worldwide expansion. Their focus and mission is to continue to lead the wayin providing the best service, prices, and locations in the worldwide marketplace.

Federal Express responded to the distribution revolution by creating its FedEx LogisticsServices Division. By using its sophisticated data management and the world's foremosttransportation systems, they are offering their customers opportunities to revolutionize all oftheir logistical needs.

In 1989, the company acquired Flying Tigers. This enabled Federal Express to greatly expandits routes, add equipment, and facilities. Most important, the company expanded withdedicated, seasoned professionals. Worldwide employment climbed to more than 119,000.

In 1990, Federal Express became the first service company to win the Malcolm BaldrigeNational Quality Award. In 1994, the company was the first to reach simultaneous CorporateISO 9001 Certifications.

They added the new generation McDonnell Douglass MD-11 to their aircraft fleet. The MD-11and the DC10s enable the Federal Express Freight fleet to offer unmatched service around theglobe complementing their 727 fleet and a growing number of Airbus A300s and A310s.

After coming close to $10 billion in revenues for the first time in fiscal year 1995, FederalExpress hit $18 billion in revenues during fiscal year1999 and is projected to match or exceedthis figure in fiscal year 2000. On 12-Feb-2004, FedEx Group acquired Kinko's, Inc. Now italso provides document solutions and business services, including copying and printing

services, signs and graphics, videoconferencing, high-speed wireless and wired Internet accessand computer usage.


6/24

6

When first introduced in the 1970s, overnight express service was considered a specialty. Today,it's an important part of the global business economy. This exceptional service stems from onesource--FedEx people. Meeting customer needs with a dedicated work force is the primarycomponent of the historical success of Federal Express Corporation.

FEDERAL EXPRESS CORPORATIONFederal Express has changed its look. They have reorganized themselves in order to make it as

easy as possible for businesses of all sizes to achieve their shipping, logistics, supply-chain, and

e-business objectives.

As an $18 billion market leader in transportation, information, and logistics solutions, Federal

Express Corporation provides strategic direction for five major operating companies and a

leading regional carrier: FedEx Express, FedEx Ground, FedEx Custom Critical, FedEx

Logistics, FedEx Trade Networks, and Viking Freight. Each company operates independently,

focused on its market segment, but also competes collectively under the powerful FedEx brand

worldwide. In today's Network Economy,

FedEx Corporation is uniquely positioned to leverage the power of networks to help connecttheir customers to the high-tech, high-speed global marketplace through:

Unsurpassed physical networks, delivering nearly five million shipments every businessday.

Virtual networks, handling more than 100 million electronic transactions a day. Continuing to invest about $1.5 billion each year in the best information technology peopleand Information Technology.

The Federal Express people network, which consist of more than 200,000 employees andcontractors delivering more than packages; they deliver integrated business solutions.

Federal Express (Express)The worlds largest express-transportation company, offers consumers the worlds most

advanced and reliable global air/ground express distribution network, serving 210 countries and

connecting markets that comprise more than 90 percent of the worlds Gross Domestic Product

(GDP) within one or two business days. The Federal Express (Express) global transportationnetwork provides rapid, reliable, time-definite delivery of documents, packages, and freight

shipments worldwide. A state-of-the-art information technology network enables information-

rich service offerings. More than two million customers are connected electronically with

Federal Express (Express) through its Web site or its customer automation systems; about two-

thirds of the companys domestic transactions are processed electronically every business day.


7/24

7

Federal Express (Ground)It is a leading provider of ground small-package delivery. Federal Express Home Delivery, alow-cost Federal Express (Ground) service that is currently rolling to major metropolitanmarkets, focuses exclusively on business-to-home deliveries. Federal Express (Ground) is NorthAmericas second- largest provider of business-to-business ground small-package deliveryservices and a pioneer in applying advanced information technology to meet customer needs.

Federal Express (Custom Critical)It is the worlds largest surface expedited carrier. It offers nonstop,time-specific door-to-door delivery within the United States,

Canada, and Europe of time-critical shipments and shipments

that require special handling. This company is North Americas

largest time-specific critical-shipment carrier. Their door-to-door

surface and air-charter delivery solutions are driven by

sophisticated and proprietary shipment-control technology. The

White Glove Services division was recently created to meet the

demands of fragile, hazardous, perishable, sensitive, irreplaceable

or high-value freight. The companys Charter Air division offers

an array of expedited air solutions to meet customers criticaldelivery times.

Federal Express (Trade Networks)It facilitates global transportation and logistics services by providing full-service customs

brokerage, trade consulting, information technology, and e-clearance solutions. FedEx Trade

Networks Inc. helps customers of all sizes solve the intricacies of shipping goods globally. The

company provides customers with full-service customs brokerage, which includes: entry filing

and release services; assessing and advancing customs duties and fees; and filing declarations for

items shipped via express air and ground networks. Other services include trade consulting and

information technology, including fully integrated regulatory compliance for imports and

exports, document preparation and archiving. E-clearance solutions, another service offered to

customers, make it possible to quickly clear more shipments through customs by using advanced

e-commerce programs. Other transportation and logistics services, catering to customer need

and some built around the unique customer situation are also available.


8/24

8

Federal Express (Logistics)It specializes in transportation management, integrated logistics, and consulting services that arein keeping with the hall marks of the Federal Express brand, global, time-definite and

information-intensive. The company offers complete supply chain solutions targeted to

customers in the aerospace, automotive, health care, high technology, industrial, and consumer

products industries.

Federal Express (Freight)Viking Freight is the leading less-than-truckload carrier operating principally in the western

United States offering premium next-day, on-time regional freight service and direct ocean

service to Alaska and Hawaii.

Operate Independently But Compete Collectively

This is a new concept (a new business model) at Federal Express. The concept allows Federal

Express Corporations five primary subsidiaries (i.e. FedEx Express, FedEx Ground, FedEx

Custom-Critical, FedEx Logistics, and FedEx Trade Networks) the freedom to operate their

transportation, distribution, and logistics systems independently; each focusing on the segment

of the market it serves best. Each subsidiary has a transportation system, a cost structure and a

unique culture suited to its particular market segment. Fred Smith, Corporate CEO, feels thatattempts to combine the operations would dilute the quality of service each company provides.

While the companies under Federal Express Corporation have the freedom to operate

independently, the strength of the corporation is in the sum of the capabilities each company

brings to the corporation. In short, Federal Express Corporation leverages the companies

capabilities and their myriad of services; overlays the Federal Express elaborate infrastructure,

distribution and information network; all under the Federal Express brand to create the ultimate

and most complete express-distribution operation in the world.


9/24

9

FEDEX LEADERSHIPThrowing spotlight on Federal Express leadership, it aligns its organization through the

company's "living" credo: PEOPLE SERVICE PROFIT. It sets direction and aligns the

organization around strategic goals then creates a common vision to guide organizational

behavior. Former Marine Fred Smith has based his own personal leadership style at FedEx on the

principles derived from his experiences in the Marine Corps. Smith has incorporated many of his

personal leadership lessons into the FedEx Leadership Institute, where the firms managers are

trained. Smith has noted that those trained in the military will immediately recognize many of the

principles that are taught at the FedEx Leadership Institute as being familiar from their military

training.

All management is held accountable for a people first attitude, impeccable service to external

and internal customers, and a reasonable profit, which can be used to reward employees and to

improve the company. All the organizations values and objectives flow from this model, whic h

helps to align employees and managers activities.

FedEx strives to be an environmental leader in the transportation industry. They participate in thedevelopment of sound environmental policy and the promotion of effective environmentalmanagement by their suppliers and contractors.

They believe that opportunities to use new technologies to achieve greater benefits are just

beginning to be realized. FedEx is proud to be one of the first companies to make investments inlarge-scale solar power, renewable energy purchases, hybrid-electric delivery trucks and otheremerging environmental efforts.

Through collaborations with government and nonprofits, greener technologies like these aregaining in popularity, and FedEx continues to use its leadership position to help establish them asthe standard in the industry. FedEx was the only transportation company to publicly call for fuelefficiency standards for commercial medium and heavy-duty truck classes. These standardswould help speed development of new, cleaner vehicle truck technologies, as they did forpassenger cars. FedEx Chairman, President and CEO Fred Smith have also made a public call forenergy efficiency and diversification through his involvement with Securing Americas Future

Energy.

FedEx is proud to have been recognized by leading government agencies, nonprofit

organizations, academic institutions and more for its contributions to sustainable business

development.
http://news.van.fedex.com/node/881http://news.van.fedex.com/node/881http://www.secureenergy.org/site/page.php?node=364&id=36http://www.secureenergy.org/site/page.php?node=364&id=36http://www.secureenergy.org/site/page.php?node=364&id=36http://www.secureenergy.org/site/page.php?node=364&id=36http://www.secureenergy.org/site/page.php?node=364&id=36http://news.van.fedex.com/node/881http://news.van.fedex.com/node/881


10/24

10

FEDEX MISSION,STRATEGY,VALUES

Mission

FedEx mission is to produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focusedoperating companies, to meet customer requirements in the highest quality manner appropriate toeach market segment served, to strive to develop mutually rewarding relationships with itsemployees, partners and suppliers, to make safety the first consideration in all operations and toconduct corporate activities to the highest ethical and professional standards.

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

Compete collectively by standing as one brand worldwide and speaking with one voice. Operate independently by focusing on our independent networks to meet distinct

customer needs.

Manage collaboratively by working together to sustain loyal relationships with ourworkforce, customers and investors.

Along with the above three levels, the company is currently exploring four strategies for use inestablishing itself as a viable competitor in the world market:

The global strategy is used when an enterprise locates its headquarters in one countrywhile its operations are performed in one or more other countries. Many domestic

organizations have adopted this approach in order to broaden their markets by exporting

their products. Under this approach, an organization operates in a centralized manner.

Efficiently, obtained through economies of scale, is the key criterion of effectiveness

sought by the global company.

In a multinational strategy, national or regional operations are relatively autonomousand decentralized in order to increase sensitivity to differences among the individual

countries in which it operates. The key competitive issue is responsiveness to local

markets.


11/24

11

Under the international strategy, enterprises compete on a worldwide basis againstother international companies. The international approach calls for a more horizontal

structure and establishes strategic linkages between countries in which a firm operates.Because the key to success in this approach lies in the enterprises ability to transfer

knowledge to overseas units, learning constitutes its key issue.

The transnational enterprise strategy poses the greatest challenge for organizationsseeking to increase their global competitiveness. The primary difficulty is to design an

organization form that is capable of being efficient and responsive, and that enables the

transfer of knowledge across locations.

Values

People: They value their people and promote diversity in their workplace and in theirthinking.

Service: Their absolutely, positively spirit puts their customers at the heart of everythingthey do.

Innovation: They invent and inspire the services and technologies that improve the waythey work and live.

Integrity: They manage their operations, finances and services with honesty, efficiencyand reliability.

Responsibility: They champion safe and healthy environments for the communities inwhich they live and work.

Loyalty: They earn the respect and confidence of their FedEx people, customers andinvestors every day, in everything they do.


12/24

12

FedEx Quality

FedEx did not become the largest shipping company by chance, they did it by focusing on their

customers needs and making quality in their services a top priority.

FedEx uses many different systems to maintain, monitor, or improve quality. The main quality

control system is called (TQM) Total Quality management. This TQM system incorporates

programs such as a formal Quality Improvement Process (QIP). The philosophy of the QIP

program is that quality must be a way that FedEx does business not part of the time, but all of the

time. As a result sayings such as "Do it right the first time", "Make the first time you do it the

only time anyone has to", and "Q=P" (quality = productivity) are important parts of the FedEx

culture. To maintain these mottos the company teaches all of its employees the 1-10-100 rule.

According to the rule, if a problem is caught and fixed as soon as it occurs, it costs a certain

amount of time and money to correct. If a mistake is caught later in a different location, it may

cost 10 times that much to repair. And if a mistake is caught by a customer such as receiving a

wrong package that perhaps got mixed up during the shipping process it may cost up to 100

times as much to fix. FedEx also utilizes quality action teams (QAT) and (IT) information

technologies to continuously improve FedEx's quality. QATs design work processes to support

new product and service offerings. A set of service quality indicators (SQI) has been established

to determine the main areas of customers' perception of service. All of this data is processed

through SQI teams and information technologies.


13/24

13

FEDEX ISO9000CERTIFICATIONIn 1994 the company became the first international express cargo carrier to receive system wideISO 9001 certification. In that time, they have come a long way in instilling the ISOrequirements as a way of life, a way to conduct smart business. FedEx has an extensive qualityand service assurance network which facilitates their internal audit program (a requirement ofISO 9001) and provides ISO 9000 expertise for all departments. FedEx becomes the first globalexpress transportation company to receive worldwide ISO 9001 quality certification throughoutits entire system The Asia Pacific Division was visited by their external assessor, Lloyd'sRegister Quality Assurance (LRQA) in November 1995. LRQA continues its assessment throughelectronic and field audits.

The twenty elements of ISO 9001 range from Management Responsibility to Process Control toTraining. They are far reaching and challenging, but simply good business. It means that FedExhave processes in place to deliver to its customers what it says its going to deliver: reliable,time-definite service backed by real-time information on shipments.

FedEx met the rigorous quality system standards they at Lloyd's apply for ISO 9001 certification.LRQA president in the U.S complemented that they were impressed both by the company's useof technology and by the commitment of its employees to provide the high level of serviceFedEx customers expect.

ISO 9001 UpdateVersion 2000 of ISO 9001 on Quality Management System Standard provides comprehensiveguidelines for organizations to develop an excellent business system. To meet with the newrequirements, FedEx begin with understanding the need of our customers. Based oncustomers valuable input through different communication channels, they continuouslyvalidate that they are delivering the right service to them. At the same time, they enhance theirinternal systems like technology, training, operations and billing etc., so that they are alwaysthe best in the industry. Finally, the company has different teams of employees contactcustomers and listen to their valuable feedback with heart. This information is then mapped tothe processes and enabling FedEx to improve its service through regular business process

enhancement. The whole process is managed by senior management and a team of qualityprofessionals.

In August 2003, FedEx have been re-certified by Lloyd's Register Quality Assurance based onISO 9001 version 2000. Again, it demonstrates their commitment to CUSTOMERS -providing a high performance and consistent international express service and total logisticssolutions to them.


14/24

14


15/24

15

FedEx Ground Awarded ISO 9002 Registration

FedEx Ground, an operating company of FedEx Corporation, received ISO 9002 registration forits U.S. and Canadian network of more than 500 facilities.

The company was audited and certified by Lloyd's Register Quality Assurance Inc., a part of theLloyd's Register Group and the leading independent classification and inspection authority forshipping and engineering industries.

"ISO 9002 registration clearly demonstrates our ongoing commitment to provide customers withthe highest quality transportation and logistics services," said Daniel J. Sullivan, president andCEO of FedEx Ground. "This registration is a credit to our team of more than 35,000 employeesand independent contractors and their uncompromising dedication to uphold a strong qualityfocus."

With registration of the company's network -- including its FedEx Home Delivery facilities --FedEx Ground now falls under FedEx Corporation's umbrella certificate of ISO 9001registration. This certificate, which encompasses FedEx Ground, FedEx Express and FedExServices, covers the design, management and operation of its worldwide express and groundtransportation services.

Mike Glenn, executive vice president, Market Development and Corporate Communications atFedEx Corp said that the certification gives assurance to customers competing in the globalmarketplace that they have world-class quality processes in place to deliver both time-definite

express and date-definite ground services as promised. They are proud to be the first and onlyglobal transportation leader to have both our entire express and ground networks registered.


16/24

16

FEDEX RECOGNITION

FedEx Corporation has been recognized as one of the worlds most respected companies for thestrategic leadership it provides to the independent companies that make up todays FedEx:

FedEx Express, FedEx Ground, FedEx Freight, FedEx Kinkos Office and Print Services, FedEx

Custom Critical, FedEx Trade Networks, FedEx Supply Chain Services and FedEx Services.

Recent recognition of its leadership, workplace environment and contribution to the communityincludes:

Most Admired / Best Companies

Americas Most Admired Companies list, No. 6 Fortune - 2007 Worlds Most Admired Companies list, No. 7 Fortune2007 "Premier 100 IT Leader for 2007"Computerworld2007 Americas Most Admired Companies list, No. 2 Fortune2006 Worlds Most Admired Companies list, No. 4 Fortune2006 Worlds Most Admired Companies list, No. 8 Fortune2005 Americas Most Admired Companies list, #No. 6 Fortune 2005 No. 1 Delivery CompanyFortune2005 Hall of Fame for claiming a spot on the 100 Best Companies to Work for in

America list every year since its inception (1998-2005)Fortune - 2005 Worlds Most Respected Transportation Company Survey, No. 1 - Financial

Times and PricewaterhouseCoopers2004 U.S. Corporate Reputation survey, No. 8 - Harris Interactive, the Reputation

Institute and Wall Street Journal2004 Worlds Most Respected Transportation Company Survey, No 1 - Financial

Times and PricewaterhouseCoopers2003 Worlds Most Admired Companies list, No. 10 - Fortune - 2003 Worlds Most Respected Companies Survey list, No. 70 - Financial Times and

PricewaterhouseCoopers - 20022003 Top-10 Companies for Overall Reputation - Harris Interactive, the Reputation

Institute and Wall Street Journal2003 "Index of Top 40 Companies" list No. 12 - Wired2003 Worlds Most Admired Companies list, No. 10 - Fortune - 2002


17/24

17

Cleaner Vehicles

FedEx Express, along with Environmental Defense Fund and Eaton Corporation, receivedthe prestigious Harvard University Kennedy School of Government biennial 2005 RoyFamily Award for Environmental Partnership for the organizations joint creation of ahybrid delivery truck.

The hybrid truck project also claimed the 2005 Blue Sky Award by West Start-CALSTART for its nearly single-handed placement of commercial hybrid trucks on themap for corporate America.

FedEx Express received the Environmental Protection Agencys (EPA) 2004 Clean AirExcellence Award for clean air technology in April 2005, along with the EnvironmentalDefense Fund and Eaton Corporation for their collaboration to launch the FedEx hybrid-electric truck.

Material Resources FedEx Office was awarded the 2007 Gold Achievement Award from EPAsWaste Wise

program for the companys efforts to reduce plastic waste. The Business Environmental Resource Center and Sacramento County, Calif., presented

FedEx Express with the Pollution Prevention Business Award in 2004. In 2004, FedEx Office received the Rainforest Alliance Corporate Green Global Award

for its commitment to sustainable paper practices. FedEx Office received the 2001 Environmental Stewardship Award from the National

Recycling Coalition.

Tennessee Recycling Coalition's "Recycling Innovator of the Year" award waspresented to FedEx Express in 1999 for our innovative program that recycled over ninemillion pounds of material from our Memphis operations.

In 1998, The American Trucking Organization awarded FedEx Express its"Environmental Excellence in Trucking" award for recycling over six million poundsof material in innovative waste minimization activities for published manuals andtraining.

Green Power FedEx Express and FedEx Office are ranked in the top 50 of the EPAs April 2008Green

Power Partnership list ofFortune 500 companies that have invested in renewable energy.FedEx Office is ranked in the top 10 among retail companies.

FedEx Express was given the Green Power Leadership Award from the EPA in 2001,2003 and 2005 for Green Power On-Site Generation. In 2002, we also earned the EPA'sGreen Power Partner of the Year.
http://belfercenter.ksg.harvard.edu/publication/3662/harvard_announces_2005_roy_family_environmental_award_new_hybrid_fedex_trucks_will_reduce_emissions_96_increase_fuel_efficiency_50.htmlhttp://www.calstart.org/aboutus/nl_detail.php?id=81http://www.calstart.org/aboutus/nl_detail.php?id=81http://www.epa.gov/air/caaac/clean_award.htmlhttp://www.epa.gov/air/caaac/clean_award.htmlhttp://www.epa.gov/wastewise/conf/awardees.htmhttp://www.epa.gov/wastewise/conf/awardees.htmhttp://www.sacberc.org/http://www.rainforest-alliance.org/about.cfm?id=past_honoreeshttp://www.trc-online.org/http://www.truckline.com/indexhttp://www.epa.gov/grnpower/toplists/fortune500.htmhttp://www.epa.gov/grnpower/toplists/fortune500.htmhttp://www.epa.gov/grnpower/toplists/fortune500.htmhttp://www.epa.gov/greenpower/awards/index.htmhttp://www.epa.gov/greenpower/awards/index.htmhttp://www.epa.gov/greenpower/awards/index.htmhttp://www.epa.gov/greenpower/awards/index.htmhttp://www.epa.gov/grnpower/toplists/fortune500.htmhttp://www.epa.gov/grnpower/toplists/fortune500.htmhttp://www.truckline.com/indexhttp://www.trc-online.org/http://www.rainforest-alliance.org/about.cfm?id=past_honoreeshttp://www.sacberc.org/http://www.epa.gov/wastewise/conf/awardees.htmhttp://www.epa.gov/air/caaac/clean_award.htmlhttp://www.epa.gov/air/caaac/clean_award.htmlhttp://www.calstart.org/aboutus/nl_detail.php?id=81http://www.calstart.org/aboutus/nl_detail.php?id=81http://belfercenter.ksg.harvard.edu/publication/3662/harvard_announces_2005_roy_family_environmental_award_new_hybrid_fedex_trucks_will_reduce_emissions_96_increase_fuel_efficiency_50.html


18/24

18

Education In recognition of the actions to promote environmental preservation and effective

environmental management, FedEx United Arabs Emirates was awarded the Dubai CargoVillage Environmental Awareness Award in June 2004 for the third year running.

FedEx Corp. is a participant in the Global Environment Management Initiative (GEMI), anonprofit organization that has united leading companies dedicated to fosteringenvironmental and corporate citizenship worldwide.

Facilities Management FedEx Express was awarded the International Earth Award for excellence in

environmental facility management by Building Owners and Managers Association(BOMA) International in 2004 and 2005. The FedEx Services World Technological

Center in Collierville, Tenn., received the award in 2003. The City of Fort Worth's Water Department awarded the FedEx Express Alliance FortWorth Hub its Pretreatment Star Award for both 1999 and 2000, achieving 100 percentcompliance with pretreatment regulations. The next year, the city honored the hub withits "Pretreatment Partnership" award for achieving 100 percent compliance with local,state and federal pretreatment regulations for a period of three consecutive years (1999-2001).

FedEx Express Awards

Fortune, "100 Best Companies to Work for in America" (1998, 1999, 2000) Fortune, "50 Best Companies for Asians, Blacks and Hispanics" (1998, 1999) Working Woman, "100 Best Companies for Working

Mothers" (1998)

FedEx Ground Awards National Small Shipments Traffic Conference

(NASSTRAC) and Logistics Management andDistribution Report magazine, "Parcel DeliveryCarrier of the Year" (1999)

American Trucking Association Safety Contest,first place, "General Commodities Division,Miscellaneous Fleets, Linehaul, Over 20 MillionMiles" category (1998, 1999)

American Trucking Association, President'sTrophy for the best overall safety program (1996).
http://www.ameinfo.com/6428.htmlhttp://www.ameinfo.com/6428.htmlhttp://www.gemi.org/http://www.boma.org/AboutBOMA/pressroom/2005pr/TOBYwinners2005.htmhttp://www.boma.org/AboutBOMA/pressroom/2005pr/TOBYwinners2005.htmhttp://www.fortworthgov.org/water/http://www.fortworthgov.org/water/http://www.boma.org/AboutBOMA/pressroom/2005pr/TOBYwinners2005.htmhttp://www.gemi.org/http://www.ameinfo.com/6428.htmlhttp://www.ameinfo.com/6428.html


19/24

19

FedEx Custom Critical Awards Pfizer Corporation, "Quality Carrier of the Year" for transportation excellence for the

fifth consecutive year (1998) Goizueta Business School of Emory University, "Best Practices in Customer Relationship

Management" (1997) Smithsonian Institution, included in the Permanent Research Collection on Information,

Technology and Society (1996)

FedEx Logistics Awards Institute of Transport Management, "European Logistics Company of the Year" (1999) Logistics Management & Distribution Report "Quest for Quality Award" in the category

of third-party logistics (1999) General Motors "International Supplier of the Year Award" (model year 1998)

FedEx Freight Awards Dayton Hudson Corporation, "Director's Excellence Award" Glaxo Welcome, "Carriers' Performance Best of Class Award" International Paper, "Regional LTL Carrier Award for Outstanding Performance" PacBell Directory, "Supplier Quality Alliance Silver Medal" Phillips-Van Heusen Corporation "Carrier of the Year" National Small Shipments Traffic Conference (NASSTRAC) "LTL Regional Carrier of

the Year" (fourth time) Logistics Management & Distribution Report"Quest for Quality" readers' choice award

(eighth time) California Trucking Association, first place, "Fleet Safety Contest" American Trucking Association, "President's Trophy for Safety"


20/24

20

FEDEX INNOVATIONSFedEx was built upon innovation and it continues to be an integral part of the FedEx culture andbusiness strategy. Their commitment to innovation propels the development of ideas, productsand services that empower their customers to grow their businesses around the world.

FedEx created a new and distinct market over thirty years ago when it began providingcustomers access to next day just-in-time delivery service. Since its inception, Frederick W.Smiths vision for the company has always had a focus on innovation.

In 1978, Fred Smith was famously quoted as saying, The

information about the package is just as important as the packageitself. Today, FedEx provides customers access to almost real-time information which has enabled new supply chain modelsand efficiencies. This unprecedented access to information isconnecting customers around the world to economic markets andcommunities.

Innovation is a part of the DNA at FedEx. Whether it is throughweb services, alternative energy practices or the development ofhigh-technology, FedEx sees innovation as a strategic businesspractice that is continuously enhanced, developed and

encouraged.

History of Innovation

FedEx has a rich history of innovation that is built on a series of firsts including:

Installing computers in delivery vehicles, providing sophisticated automation for corporatemailing services and developing tracking capabilities and software.

In 1994, they were the first to offer package-status tracking for improved customer servicevia fedex.com.

Offering shipping for improved customer service and convenience via fedex.com Pioneering the use of wireless technology for shipping over 25 years ago with the

introduction of the Digital Assisted Dispatch System (DADS).


21/24

21

FEDEX HUMAN RESOURCEFedEx employees are the foundation of its success and the key to its future. FedEx provides a

safe, diverse and rewarding environment where its people have opportunities to grow and

succeed.

Since its inception, FedEx's management focused on providing a suitable work environment that

encouraged employees to come up with innovative solutions. Employees responded positively to

the faith reposed in them and displayed exemplary commitment towards their work. The extent

of the commitment of the employees could be gauged from the fact that during the first couple of

years, when the company was going through severe financial difficulties, the employees were

prepared to sell their personal belongings and use their own credit cards to purchase fuel todeliver the packages to the customers. Even when the employees didn't receive their salary on

time, they continued working with FedEx.

Smith believed that since FedEx was a service organization, its success depended heavily on its

employees. Hence, in 1973, he developed and implemented FedEx's 'People-Service-Profit'

(PSP) philosophy. According to this philosophy, if FedEx took proper care of its employees, they

would provide efficient service to the customers, which would in turn benefit the company by

generating more profits. This philosophy formed the basis of all management decisions taken at

FedEx.

The Right People...FedEx always look for talented people that share the basicqualities of honesty, enthusiasm, creativity and respect forco-workers and customers.

As FedEx has grown into a global company, a culture hasdeveloped that respects diversity and tries to develop thefullest potential of employees within FedEx. Managementunderstands that FedEx will only continue to be successfulwith the dedicated employee. This is core to its philosophy

ofPeople - Service - Profit.

Growing with FedEx...FedEx has led the industry in creating employee focused programs to promote positive internalcommunications and staff development.
http://fedex.com/hk_english/careers/http://fedex.com/hk_english/careers/


22/24

22

On August 20, 1997 Federal Express Corp. distributed an approximate $20 million SpecialAppreciation Bonus to nearly 90,000 U.S. operations employees in recognition of their

extraordinary efforts. It's no idle boast to say that they are a family.Below are some of the key programs offered to employees:

Promotion From Within Policy - allows employees to be considered first foropen positions.

Open Door Procedures - allows employee input to be received and considered bymanagement.

Guaranteed Fair Treatment - assures any employee grievance is dealt with fairlyand objectively.

Survey - Feedback - Action - gives an opportunity for employees to offerfeedback on the effectiveness of management.

G.O.L.D. (Growth, Opportunity, and Leadership & Development) Program -provides an in-house management development program.

Growth Opportunities

FedEx believed in promoting people from within for higher management cadres. The SFA

program helped management take decisions regarding promotions, though its utility was

confined to evaluating the performance of the managerial cadre employee only. FedEx also

provided opportunities to employees from the non-managerial cadres to move up to the

managerial level. In order to encourage non-managerial cadre employees to move to the

managerial within the organization, FedEx devised a unique program known as Leadership

Evaluation Awareness Process (LEAP).


23/24

23

FEDEX CUSTOMER CARE

Building an emotional connection with customers takes time and commitment. But even in the

short term, significant improvement is possible. FedEx is a prime example. In just a few weeks,

the company saw an increase in its year-over-year business following the debut of a customer-

care program designed to enhance an emotional connection between FedEx and its clients.

During the 2003 holiday season, FedEx introduced a new communication tool for its business

account managers that consisted of 16 electronic messages, or e-cards. With the help of Hallmark

Loyalty, FedEx created custom electronic greetings appropriate for a variety of occasions. The

greetings are designed to help establish personal relationships between FedEx account

representatives and their business customers. Going beyond purely professional communication,

FedEx's aim was to demonstrate to its customers that its account reps care about them as

customers and as people.

The company introduced its e-cards to more than 300,000 business account contacts, many of

whom wrote back. In fact, the vast majority of sales reps who send e-cards get replies from

customers either thanking them, or opening up a dialogue about more business.

To further convey its commitment to quality customer care, FedEx asked that the Hallmark logo

appear on the opening e-card screen, just as it appears on the back of paper greeting cards.

Customers reacted to the greetings almost immediately, both by increasing the amount of

shipping they were doing with FedEx and by sending notes of appreciation to their account

representatives. FedEx had struck a chord.

In the three months following the start of the e-cards program, the company saw double-digit,

year-over-year revenue and volume increase among the accounts that received e-cards during the

holidays. Forging an emotional connection with customers translated into increased business forFedEx in just a few short weeks. The enhanced loyalty that has been fostered likely will mean

increased revenue over the next few years from reduced customer attrition.

FedEx showed customers that it cares, and customers returned the gesture.


24/24

24

FEDEX CONCLUSIONFederal Express is in the process of transforming itself into a diversified company that offers

much more to its customers than ever before. The acquisition of Caliber Systems allows Federal

Express the opportunity to offer its customers more reliable transportation, distribution, logistics

and other related services. In addition, Federal Express is able to perform a wider range of

express distribution services and options second to none in the express transportation industry.

This transformation, however, is taking its toll on the corporation. On the fast-paced stage on

which companies in Corporate America play, and in light of continuous, rapid changes due to

innovations in technology, a companys ability to reinvent itselfin part or across the board--

must become routine and seamless. It is this pressure generated by the constant reality of

preparing for and reacting to change that makes strategic thinking and strategic planningessential to any company who plans to survive in the 21st century. The term used by business

management strategist is that of becoming a learning organization, that is, the flexibility of an

organization to recognize and adjust to changes in its environment rapidly in order to maintain

the competitive advantage. Federal Express is currently going through the pains of this dilemma.

Federal Express operational concept of operating independently and competing collectively is

an ideal move that will make the company more versatile and accommodating to its customers.

The companies within Federal Express Corporation comprise the most complete express-

distribution operation ever created; the only other organization that comes close is the

Transportation Command (TRANSCOM). Federal Express, however, may be more efficient andeffective due to its highly integrated transportation, distribution, logistics, and information

network.

FedEx holds certificates of authorities to serve more foreign countries than any other U.S all-

cargo air carrier. This is a great opportunity for FedEx to grow even higher.

fedral express

Documents