Project on Fedex (Jerry's International)

FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, and business and related information 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.

Strategy

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

Chairman, President, Chief Executive Officer
 
Frederick W. Smith is chairman, president and chief executive officer of FedEx Corporation, a $32-billion global transportation and logistics company.
 
Smith is responsible for providing strategic direction for all FedEx Corporation operating companies, including FedEx Services, FedEx Express, FedEx Ground, FedEx Freight and FedEx Kinko's. FedEx serves more than 220 countries and territories with operations that include more than 677 aircraft and over 70,000 vehicles. More than 260,000 employees and independent contractors worldwide handle more than 6 million shipments each business day.   Since founding FedEx in 1971, Smith has been an active proponent of regulatory reform, free trade and "open skies agreements" for aviation around the world.
 
FedEx has continued to strengthen its industry leadership over the past 33 years, and has been widely acknowledged for its commitment to total quality service. FedEx Express was the first service company to win the Malcolm Baldrige National Quality Award in 1990. In addition, FedEx has consistently been ranked on FORTUNE Magazine's industry lists, including "World's Most Admired Companies" (No. 4, 2006); "America's Most Admired Companies" (No. 2, 2006); No 1 on the Delivery Industry list (2005); and is in the “Hall of Fame” for claiming a spot on the "100 Best Companies to Work For" list since its inception (1998-2005) and is a FORTUNE Blue Ribbon Honoree for having appeared on five of the magazine's exclusive trademarked lists in 2005.
 
Smith has served on the boards of several large public companies; as co-chairman of the U.S. World War II Memorial Project and the St. Jude Children's Research Hospital and Mayo Foundation Boards. He was formerly chairman of the Board of Governors for the International Air Transport Association and the U.S. Air Transport Association. Smith is chair of the Business Roundtable’s Security Task Force, and a member of the Business Council and the CATO Institute. He served as chairman of the U.S.-China Business Council and is the current chairman of the French-American Business Council. Smith was named Chief Executive Magazine’s 2004 “CEO of the Year.”
 
Born in 1944 in Marks, Miss., Smith attended Yale University, where he earned a B.A. in 1966. Smith served as an officer in the U.S. Marine Corps from 1966-1970.

Every generation expects easier access to more of what the world has to offer. More products and services. More information and ideas. More people and places.

FedEx helped create that expectation. And we deliver on it millions of times a day, providing the access to transform possibilities into reality.

While our early days are legendary, today's FedEx has grown up into a $29-billion network of companies offering just the right mix of transportation, e-commerce and business solutions. And we still back our services with the "absolutely, positively" spirit you expect from the trusted FedEx name.

FedEx offers the widest range of services and integrated business applications through operating companies competing collectively and managed collaboratively. 

As Chairman, President and CEO Smith said decades ago, the information about a package is as important as the package itself. Today's FedEx continues to support our shipping services with state-of-the-art technology, putting the information you need right at your fingertips.

More Places

The unsurpassed FedEx worldwide network links you to more than 220 countries and territories, often within 24 to 48 hours. But today's FedEx also brings you all the international support services you need—customs clearance, freight forwarding, and supply chain services. Put it all together, and it's easy to see how FedEx is extending its industry leadership and connecting the growth sectors of the global economy

More Focused on Your Needs

We are FedEx—approximately 250,000 people who came from different places and different backgrounds to rally around a common mission: We promise to do whatever it takes to meet your needs.

Customer counts on FedEx to simplify their lives and connect their businesses to the global marketplace. Investors count on FedEx to deliver shareholder value. Communities count on FedEx to be a good neighbor and a responsible corporate citizen. And employees count on FedEx to be a great place to work.

FedEx is widely acknowledged as a world-class company.

We are honored and proud to be consistently recognized as a great place to work,

A technology innovator and one of the world's most admired and respected companies.

Today's FedEx is a network of companies that share a rich heritage of innovation and industry leadership. While each company has a unique history, collectively they exhibit the "absolutely, positively" dedication to providing specialized solutions for every shipping, information and global trade need that the world has come to expect from FedEx.

Learn more about FedEx, from the early history of Federal Express to the contemporary business story of FedEx Corporation. Or, view the FedEx historical timeline.

FedEx Corporation
 
Today's FedEx is led by FedEx Corporation, which provides strategic direction and consolidated financial reporting for the operating companies that compete collectively under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Freight, FedEx Kinko's Office and Print Services, FedEx Custom Critical, FedEx Trade Networks and FedEx Services.
 
Originally called FDX Corp., FedEx Corp. was formed in January 1998 with the acquisition of Caliber System Inc. Through this and future purchases, FedEx sought to build on the strength of its famous express delivery service and create a more diversified company that included a portfolio of different but related businesses. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited, exclusive-use shipping provider; Viking Freight, a regional, less-than-truckload (LTL) freight carrier serving the Western U.S.; Caribbean Transportation Services, a provider of airfreight forwarding between the U.S., Puerto Rico, the Dominican Republic and the Caribbean Islands; and Caliber Logistics and Caliber Technology, providers of integrated logistics and technology solutions. These companies, along with worldwide express shipping provider Federal Express, composed the original FDX Corp.
 
Over the next two years FDX Corp. oversaw the assimilation of these companies and introduced them to many trademark service and technology enhancements.
 
In January 2000, FedEx unleashed the power of its global brand. In a move to further integrate the company's portfolio of services, FDX Corp. was renamed FedEx Corporation. In addition, Federal Express became FedEx Express, RPS became FedEx Ground, Roberts Express became FedEx Custom Critical, and Caliber Logistics and Caliber Technology were combined to make up FedEx Global Logistics. To centralize the sales, marketing, customer service and information technology support for FedEx Express and FedEx Ground, a new subsidiary named FedEx Corporate Services (FedEx Services) was formed and began operations in June 2000.
 
Over the next year, a number of acquisitions and realignments changed the size and scope of various FedEx operating companies. The first move was a new subsidiary, just one month after the re-branding announcement. In February 2000, FedEx Corp. announced the acquisition of Tower Group International, a leader in the business of international logistics and trade information technology. Tower Group became the foundation of a new FedEx Corp. subsidiary, FedEx Trade Networks, which in turn acquired World Tariff, a customs duty and tax information company, a month later. Today, FedEx Trade Networks is the largest-volume customs entry filer in North America and a leader in global ocean & air cargo distribution and trade facilitation.
 
In January 2001, FedEx Global Logistics was realigned to streamline the organization and further improve customer service. FedEx Supply Chain Services became part of FedEx Services and Caribbean Transportation Services became part of FedEx Trade Networks. The following month, FedEx Corp. finalized the acquisition of American Freightways, a leading LTL freight carrier serving 40 states in the eastern two-thirds of the U.S., and re branded American Freightways and Viking Freight as FedEx Freight.
 
FedEx Corp. acquired privately held Kinko's Inc. in February 2004 and later re branded it FedEx Kinko's. For FedEx, it meant expanded retail access to all of the 1,200 FedEx Kinko's stores, enhanced FedEx document management services and a broader reach to customers of all sizes. For FedEx Kinko's, the move added the resources and expertise needed to continue expansion of its corporate document outsourcing business and international operations. All U.S. FedEx Kinko's locations worldwide offer new or expanded FedEx shipping options for greater customer convenience, including more than 400 stores that operate 24 hours a day, seven days a week.
 
In September 2004, FedEx Corp. acquired Parcel Direct, a leading parcel consolidator, and later re branded it FedEx Smart Post. The acquisition complements the FedEx alliance with the U.S. Postal Service and provides customers in the e-tail and catalog segments with a proven, cost-effective solution for low-weight, less time-sensitive residential shipments.
 
All the companies obtained through FedEx Corp. acquisitions, in addition to diversifying the FedEx services portfolio, also exhibited the same "absolutely, positively" spirit that FedEx is known for possessing—which made the companies a good fit.
 
Today, FedEx Corporation is the premier provider of shipping and information services worldwide, and its companies function under the motto of "operate independently, compete collectively and manage collaboratively." By operating independently, each company can focus exclusively on delivering the best service for its specific market. Competing collectively under the trusted FedEx banner ensures that all of the companies benefit from one of the world's most recognized brands.

FedEx Express
 
Famous Origins
In 1965, Yale University undergraduate Frederick W. Smith wrote a term paper about the passenger route systems used by most airfreight shippers, which he viewed as economically inadequate. Smith wrote of the need for shippers to have a system designed specifically for airfreight that could accommodate time-sensitive shipments such as medicines, computer parts and electronics.
 
In August of 1971 following a stint in the military, Smith bought controlling interest in Arkansas Aviation Sales, located in Little Rock, Ark. While operating his new firm, Smith identified the tremendous difficulty in getting packages and other airfreight delivered within one to two days. This dilemma motivated him to do the necessary research for resolving the inefficient distribution system. Thus, the idea for Federal Express was born: a company that revolutionized global business practices and now defines speed and reliability.
 
Federal Express was so-named due to the patriotic meaning associated with the word "Federal," which suggested an interest in nationwide economic activity. At that time, Smith hoped to obtain a contract with the Federal Reserve Bank and, although the proposal was denied, he believed the name was a particularly good one for attracting public attention and maintaining name recognition.
 
The company incorporated in June 1971 and officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. On that night, Federal Express delivered 186 packages to 25 U.S. cities from Rochester, NY, to Miami, Fla.
 
Company headquarters were moved to Memphis, Tenn., a city selected for its geographical center to the original target market cities for small packages. In addition, the Memphis weather was excellent and rarely caused closures at Memphis International Airport. The airport was also willing to make the necessary improvements for the operation and had additional hangar space readily available.
 
Company Growth
Though the company did not show a profit until July 1975, it soon became the premier carrier of high-priority goods in the marketplace and the standard setter for the industry it established.
 
In the mid-1970s, Federal Express took a leading role in lobbying for air cargo deregulation that finally came in 1977. These changes allowed Federal Express to use larger aircraft (such as Boeing 727s and McDonnell-Douglas DC-10s) and spurred the company's rapid growth. Today FedEx Express has the world's largest all-cargo air fleet, including McDonnell-Douglass MD-11s and Airbus A-300s and A-310s. The planes have a total daily lift capacity of more than 26.5 million pounds. In a 24-hour period, the fleet travels nearly 500,000 miles while its couriers log 2.5 million miles a day – the equivalent of 100 trips around the earth.
 
The company entered its maturing phase in the first half of the 1980s. Federal Express was well established. Competitors were trying to catch up to a company whose growth rate was compounding at about 40 percent annually. In fiscal year 1983 Federal Express reported $1 billion in revenues, making American business history as the first company to reach that financial hallmark inside ten years of start-up without mergers or acquisitions.
 
Overseas Expansion
following the first of several international acquisitions, intercontinental operations began in 1984 with service to Europe and Asia. The following year, FedEx marked its first regularly scheduled flight to Europe. In 1988, the company initiated direct-scheduled cargo service to Japan.
 
The acquisition of Tiger International, Inc. occurred in February 1989. With the integration of the Flying Tigers network on August 7, 1989, the company became the world's largest full-service, all-cargo airline. Included in the acquisition were routes to 21 countries, a fleet of Boeing 747 and 727 aircraft, facilities throughout the world and Tigers' expertise in international airfreight.
 
Federal Express obtained authority to serve China through a 1995 acquisition from Evergreen International Airlines. Under this authority, Federal Express became the sole U.S.-based, all-cargo carrier with aviation rights to the world's most populous nation. Since then, the company's global reach has continued to expand, resulting in an unsurpassed worldwide network. FedEx Express today delivers to customers in more than 210 countries.
 
Evolving Identity
The first evolution of the company's corporate identity came in 1994 when Federal Express officially adopted "FedEx" as its primary brand, taking a cue from its customers, who frequently referred to the company by the shortened name. By that time, customers used the term as a verb, meaning, "to send an overnight shipment." It did not take long for the meaning to catch on, and today it's common terminology to "FedEx" a package.
 
The second evolution came in 2000 when the company was renamed FedEx Express to reflect its position in the overall FedEx Corporation portfolio of services. This also signified the expanding breadth of the FedEx Express-specific service offerings, as well as a FedEx that was no longer just overnight delivery.
 
FedEx Firsts
Throughout its existence, FedEx has amassed an impressive list of "firsts," most notably for leading the industry in introducing new services for customers. Federal Express originated the Overnight Letter and was:

 
FedEx Kinko's Office and Print Services
 
FedEx Kinko's Origins
In September 1970, Kinko's was founded and opened the doors of its first location in Santa Barbara, Calif. This tiny Kinko's measured only 100 square feet and featured a single copier, offset press, film processing and a small selection of stationery and school supplies. Five years later, there were 24 Kinko's stores. Four years after that, there were 72.
 
Early Growth
To that point, Kinko's had focused purely on retail, small business and home-business customers with ad hoc sales efforts. It applied minimal use of technology; its stores were uniform in size, and its product offerings were limited. But as its business grew, Kinko's customer base shifted from mostly academics to a broad range of personal and business customers. In response, the company expanded its services and markets. By the mid-1990s, Kinko's had grown dramatically to more than 800 stores through the formation of S-corporations.
 
Investment and Restructuring
Clayton, Dubilier & Rice invested in Kinko's in 1996. More than 125 separate S-corporations were rolled up into a single C-corporation. The company installed centralized budgeting and financial planning systems, procurement, real estate and information services. Kinko's also started building and investing in its technology infrastructure, including digitally connecting its stores.
 
Changing Customers
Kinko's customer base had evolved and now included mobile professionals and commercial print buyers. The company realized it could not service the needs of these customers or make a meaningful connection using a one-size-fits-all approach. In addition, Kinko's had to find a way to better manage orders and workflow across its network.
 
New Leadership
In 2000, the company embarked on a strategic initiative to leverage the scale of the Kinko's network to maximize efficiencies, increase productivity, enhance profitability and drive earnings growth. Kinko's recruited a new senior management team and moved its headquarters from Ventura, Calif., to Dallas, Texas. The leadership team led an effort to develop and execute new strategic plans.
 
The Bottom Line
During the last three years, the management team took the following steps to transform Kinko's into a world-class business services company.

Kinko's leveraged its infrastructure to cover its fixed costs and drive bottom-line savings. The company implemented continuous productivity initiatives, controlled capital spending and removed 10 percent of its machine costs—while simultaneously maintaining high levels of customer service. Kinko's hub-and-spoke network allowed it to dramatically improve machine utilization and labor productivity by moving jobs around digitally to different branches. Commercial production centers were opened to handle high-volume jobs from large enterprise customers.
 
Today
FedEx acquired Kinko's in February 2004. Two months later, Kinko's was re branded as FedEx Kinko's Office and Print Services. With more than 1,500 locations in 11 countries and 20,000 team members, this acquisition by FedEx signaled the next phase of growth, profitability and—most importantly—new service offerings for customers.

FedEx Custom Critical
 
In 1947, FedEx Custom Critical was founded as a pickup-and-delivery trucking company called Roberts Cartage and became the visionary of the industry. The company changed its name in 1980 to Roberts Express and afterward made a bold move: it became the first carrier to focus solely on customized surface expediting. This new market niche provided exclusive-use, non-stop service that matched vehicle size to the customer's shipment, moving faster and at a lower cost than airfreight.
 
When North American industries learned of the Roberts Express concept, it caught on — quickly. In 1983, the company received authority to perform services across the United States. The White Glove Services^{® division was founded in 1988 to handle sensitive and high-value freight. Three years later, Charter Air® (now Air Expedite) took its inaugural flight.
 
In 1998, FedEx Corporation acquired the parent company of Roberts Express, Caliber System Inc. Roberts Express became FedEx Custom Critical in 2000, aligned with one of the world's most recognized brands. Later that same year, FedEx Custom Critical acquired Passport Transport, which moves high-value, classic, specialty and modern cars.
 
Today, FedEx Custom Critical continues to lead the industry that it founded.}

FedEx Trade Networks
 
From its origins in 1913 as customs broker C.J. Tower & Sons in Niagara Falls, N.Y., FedEx Trade Networks has evolved into one of the largest-volume customs entry filers in North America.
 
Following its purchase by McGraw-Hill, Inc. in 1986, C.J. Tower & Sons became Tower Group International, Inc. Three years later Tower Group began a series of acquisitions that increased its presence across the U.S., and it emerged as a leader in international logistics and trade information technology.
 
FedEx Corp. acquired Tower Group and World Tariff Ltd. to create FedEx Trade Networks in 2000. In 2002, Tower Group was re branded as FedEx Trade Networks Transport & Brokerage, Inc. The company provides customs brokerage, global ocean and air cargo distribution and other value-added services to assist customers with international shipping.
 
A second subsidiary, called FedEx Trade Networks Trade Services, Inc., was also formed in 2002. This division incorporates the duty and tax data services of World Tariff with international Trade & Customs Advisory Services (TCAS), which is designed to streamline, automate, and simplify the international shipping process for customers, as well as provide comprehensive trade information. FedEx Trade Networks is the first company to provide a duty and tax application on its Web site. The ability to estimate duties and taxes online allows customers to access real-time customs duty, tariff and tax information for 119 countries.
 
Today, FedEx Trade Networks is one of the largest-volume customs entry filers in North America. Leveraged to access the wide array of services offered by the other members of the FedEx family of companies and their subsidiaries, FedEx Trade Networks provides FedEx global customers with end-to-end transportation and customs clearance solutions around the world.

FedEx Supply Chain Services
 
In 2001, FedEx Supply Chain Services, a subsidiary of what was then FedEx Global Logistics, was realigned to become a subsidiary of FedEx Services. Today, FedEx Supply Chain Services provides transportation and logistics management, consulting services and other customized supply chain solutions so customers can maximize potential and minimize costs.

FedEx Services
 
FedEx Corporate Services ("FedEx Services") began operations in June 2000 and was created to provide information technology, sales and marketing support for FedEx Corp. subsidiaries FedEx Express and FedEx Ground.
 
Today FedEx Services coordinates sales, marketing and technology support for the global FedEx brand. This includes the data management and networking expertise behind the package tracking capabilities for FedEx Express, FedEx Ground and FedEx Freight, along with the e-commerce services that today's marketplace demands.