FedEx Corporation (FedEx) is a courier company specializing in overnight delivery,
ground, heavy freight, document copying, and logistics services. The company was
originally founded as Federal Express in 1971 by former U.S. Marine Frederick W.
Smith. The name, Federal Express, was chosen to symbolize a national marketplace, and
for this reason, Smith had hopes of obtaining government contracts. Smith began Federal
Express in Little Rock, Arkansas; however, he moved the company to Memphis,
Tennessee in 1973 because airport officials in Little Rock refused to provide facilities for
such a young airline. (http://en.wikipedia.org/wiki/FedEx).
Although Federal Express was founded in 1971, it officially began operations on April
17, 1973. Its opening was the birth of the modern air/ground express industry. The
company was the first cargo airline to use jet aircraft for its services; it utilized a network
of 14 Dassault Falcon 20s (jets) that connected 25 U.S. cities. The use of the hub-spoke
distribution paradigm in air freight enabled it to become a world leader in its field. While
much of its U.S. overnight freight operates through its Memphis hub, other U.S. hubs are
in Indianapolis, Newark, Oakland, Anchorage, and Alliance, Texas. In 1981, Federal
Express began international delivery with service to Canada utilizing its Canadian hub
operated through Toronto’s Toronto Pearson International Airport.
(http://en.wikipedia.org/wiki/FedEx).
At this point, Federal Express’ future started looking promising. Along with the
founding of the hub-spoke distribution paradigm, Public Law 95-163 was passed, giving
all cargo airlines including Federal Express a well anticipated benefit. In 1977, Congress
passed Public Law 95-163 that enabled cargo airlines to use larger aircraft with no
geographic restrictions on routes. Also, the company issued its Initial Public Offering in
1978. (http://fedex.com/us/about/today/history/timeline.html)
Federal Express soon changed its name to FDX Corporation after it made several
acquisitions. In August 1989, Federal Express acquired Flying Tigers, an international
cargo airline. As a result of this acquisition, Federal Express took over Flying Tigers’
U.S. military transport contract to carry passengers between the United States and
oversees military operations until October 1992. Next, in January 1998, Federal Express
acquired Caliber System, Inc. Caliber System owned RPS, Roberts Express, Viking
Freight, and Caliber Logistics. As a result of these acquisitions, the new organization
became known as FDX Corp.
Although FDX Corp. was the official name, the company had been unofficially referred
to as FedEx for several years. Thus, FDX Corp. chose FedEx as its primary brand name
in 1994 for recognition as the worldwide standard for fast reliable service
(http://fedex.com/us/about/today/history/timeline.html). In 2000, FDX Corp. eliminated
the “Federal Express” name, and officially changed its name to FedEx Corp. Also, at this
time, FedEx adopted the slogan “The World On Time”
(http://en.wikipedia.org/wiki/FedEx).
The newly named company soon made additional key alliances and acquisitions. In
2001, FedEx Express (a division of FedEx Corporation) and the U.S. Postal Service
formed a public-private alliance, an alliance that would prove to be very profitable. By
2006, FedEx Express was flying a billion dollars worth of packages per year for the U.S.
Postal Service, making it one of the company’s largest customers
(http://en.wikipedia.org/wiki/FedEx).
In 2001, FedEx acquired American Freightways and Viking Freight, two leading less-
than-truckload carriers in the U.S., and combined them to create FedEx Freight. Also, in
2004, FedEx bought Kinko’s, a Dallas-based company that provides printing and
business services.
FedEx gained tremendous resources that allowed it to offer a wealth of services to its
customers through the acquisitions of the key companies mentioned above, and the
company wasted no time in advertising these resources. A popular slogan for its
overnight service was, “Absolutely, positively,” shortened from “When it absolutely,
positively has to get there overnight.” Examples of other popular slogans included,
“Relax, it’s FedEx,” “Don’t panic,” and “Whatever it takes.”
FedEx has grown tremendously since it began operations in 1973. The company
currently has approximately 275,000 employees, revenues of $32.294 billion, operating
income of $3.014 billion, and net income of $1.806 billion
(http://en.wikipedia.org/wiki/FedEx).
Because of the company’s growth, FedEx Corporation is now organized into eight
operating units (listed below) that allow the company to effectively manage its resources:
FedEx Express - the original overnight courier service, owns and operates 670
aircraft and 40,000 local delivery trucks, and holds the position of the world’s
largest cargo carrier
FedEx Ground - primarily delivers to businesses, offers package delivery at a cost
savings compared to the quicker delivery services provided by FedEx Express,
uses a large fleet of trucks owned by independent owners, and has independent
contractors as its drivers
FedEx Freight - composed of less than truckload (LTL) and other freight services
FedEx Kinko’s - the retail arm of FedEx Corporation that offers office and print
centers (offering a wide range of media services including printing and copying),
offers ship centers that allow customers to drop off packages at central locations
FedEx Custom Critical - offers delivery of urgent, valuable, or hazardous items
using a large fleet of trucks and aircraft through independent contractors
FedEx Trade Networks - offers services related to customs, insurance, and
transportation advice
FedEx Supply Chain Services - offers logistic services
FedEx Services - provides marketing and information technology services for
other FedEx divisions
(http://en.wikipedia.org/wiki/FedEx)
Works Cited
(http://en.wikipedia.org/wiki/FedEx)
(http://fedex.com/us/about/today/history/timeline.html)