This presentation is about FEDEX courier services for MBA student 1st year for Organisational Behavior subject. This is about organisational change in FEDEX company and its competitors

1. Presented By - Aayushi Chhabra
Shraddha Khandelwal
Sonali Dabas
Tanul Khorania
Vishal Mishra
TAPMI School of Business
GROUP NO. - 8

2. Coverage
Brief History Old Supply Chain
About FedEx New Supply Chain
Mission and Goals Competition
What Is FedEx’s Business Model Success Mantra
Services & Segments SWOT Analysis
Change Risk Taking

3. FedEx: A Concept that
Blossomed into an Industry
• FedEx (FDX) was the brainchild of Frederick Wallace Smith in
1965. An economics student at Yale University, Smith wrote a
term paper in which he came up with the idea for an
overnight delivery service.

5. About FedEx
• Founded by Frederick Wallace Smith in 1971.
• Headquarters located in Memphis, Tennessee.
• Daily Volume of more than 7.5 million shipments
• Workforce of more than 4,00,000 team members worldwide
• Financial Year 2016 Revenue: $50.4 billion
• Countries and Territories Served: More than 220

6. CEO
Frederick Wallace Smith

7. Missions & Goals
 FedEx Corporation will produce superior financial returns for its
shareowners by providing high value-added logistics, transportation and
related business services through focused operating companies.
 Customer requirements will be met in the highest quality manner
appropriate to each market segment served. FedEx will strive to develop
mutually rewarding relationships with its employees, partners and
suppliers.
 Safety will be the first consideration in all operations. Corporate activities
will be conducted to the highest ethical and professional standards.

8. What Is FedEx’s Business Model?
 FedEx creates value by offering “high-value added” package
delivery to over 220 countries.
 The business model can best be summed-up in the
company’s early slogan: When it absolutely, positively has to
get there overnight.
 With 652 aircraft (the world’s largest freight airline) moving
over 4 million packages per day, FedEx guarantees speed with
a reliability of greater than 99%.

9. Cont...
 FedEx provides a portfolio of transportation, e-commerce,
and business services through wholly owned subsidiaries.
 Fortune ranked the company 12th for the “world’s most
admired companies” for the 14th consecutive year.

11. Services & Segments
 FedEx Office – It provides reliable service and access to printing and shipping.
Services include copying and digital printing, professional finishing, signs,
computer rental, and corporate print solutions.
 TNT - The company offers road and air delivery services in Europe, the Middle
East and Africa, Asia-Pacific and the Americas. FedEx and TNT coming together
to connect people to more opportunities.
 FedEx Supply Chain – It provides integrated solutions to help supply chain
management become a competitive advantage for customers.
 FedEx Trade Networks – It provides a full suite of integrated air and ocean
freight forwarding solutions tailored to customers’ needs.

12.  FedEx Cross border - An international shopper who wants to purchase from
websites that don't offer global shipping, FedEx Cross Border has the solution for
that shopper.
 FedEx Ground – It gives customers dependable business-to-business delivery —
or convenient residential service through FedEx Home Delivery® and FedEx Smart
Post®.
 GENCO - A FedEx Company is a leading supply chain solution provider specializing
in Product Lifecycle Logistics®. It was founded in 1898. A leader in reverse
logistics with millions of returned items processed annually.
 FedEx Custom Critical – It provides time-specific, door-to-door, same-day, and
next-day delivery of critical shipments, including urgent freight, valuable items,
and hazardous goods, via air and surface expedited services and truckload
brokerage.

15. Change
 Change happens, but managing change to your advantage is another matter.
 "A capacity to change is indispensable. Equally indispensable is the capacity
to hold fast to that which is good," noted cold warrior John Foster Dulles.
Since it began operations in 1973, Memphis, Tenn.-based FedEx has shown
an ability to change without losing touch with its essential mission. External
conditions such as technology and competition have shifted enormously
during that 28-year period, yet FedEx has been able to accommodate them
all, introducing new services and systems alike without the wild fluctuations
in growth, profitability, efficiency or employee morale that have afflicted
most companies.

16.  The most significant recent change at FedEx was a massive
reorganization announced Jan. 19, 2000.
 The company consolidated four of its five operating
subsidiaries under the FedEx brand name and moved most
of its IT, sales and marketing staff into a new company,
FedEx Corporate.
 At the same time, FedEx realigned the relationships of these
companies to one another, aiming to provide customers
with a single point of access to sales, customer service,
billing and automation systems.

17. Old Supply Chain

18. New Supply Chain

19. Service
• Review and analysis of supply chain
• Order administration
• Shipment planning and management
• Freight bill audit and payment
• Invoice and report generation

20. Competitor

21. UPS History
• Started in 1907 by 19 year-old Jim Casey then
called American Messenger Company.
• Became Unite Parcel Service of America in 1929
and began shipping packages on commercial
airliners.

22. FedEx
• 50,000 Delivery Trucks
• 625 Cargo Planes
• $47.45 Billion USD
• Apple use FedEx for
handling its e-commerce
shipments.
• 88,000 Ground Trucks
• 583 Planes
• 58.36 billion USD
• Amazon uses UPS much
more frequently then
FedEx.

23. The Competition
• Price competition
• Information Technology
• Service Expansion
• Logistic Services

25. Success Mantra
COSMOS -
It is a computerized package tracking system that monitors every
phase of delivery cycle at Federal Express.

26. Hub & Spoke
It is a centralized integrated
logistics system designed to
keep cost down. Hub and
Spoke distribution centers
receive products from many
different origins, consolidated
the products and send them
directly to destination.

27. GOCC - Global Operation Control Center
 FedEx has control centers in London,
Paris, Toronto & Hong Kong but
much of the action happens in GOC
of Memphis, Tennessee.
 24 hours a day, 365 days in a year
they monitor system for potential
disruption any problems from a jet
fuel supply issues in Asia to a
volcano in the Alaskan Island to
earthquake in Europe.
 In urgent situation the GOC has the
authority to act fast & make crucial
decision.

28. SWOT
Strength
 Network in more than 220 countries
and more than 4,00,000 employees
worldwide.
 Best use of technology
 Dependable knowledge in the delivery
business.
 High investment in IT systems
 More than three decades of
experience in logistics services
Weakness
 More dependence on US market
 Since this is a competitive segment,
the market share growth is limited
 Less competitive ground shipping

29. Opportunities
 To use cooperative strategies
 Challenging competitors through
mergers and acquisitions
 Local competitors with poor
service & products
 Acquire smaller companies to
increase market share
Threats
 Rising fuel prices could
impact company’s profit
 Varying market demand
 Vulnerable to increasing
reach by major competitors.

30. RISK TAKING
 In the 1970’s FedEx was loosing one million per month because of fuel costs.
Fedrick. Wallace Smith gambled the company’s last $5000 on a game of black jack
and literally against all odds he won.
 Smith stashed his winnings $32,000 in the company’s bank account which bought
the company some time to recover form the debt. Over the next few days he
secured 11 million in investment capital.
 Some have the view that he did nothing groundbreaking and he just got lucky. But
in another sense, luck plays a role in the beginning of so many companies. That
luck could be getting new investors (which Smith also did) or hiring someone who
turns out to be a rising star.
 In that sense every business owner takes a gamble at one point or the other.