FedEx Original

7/31/2019 FedEx Original

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BUSINESS POLICY

TOPIC:IC3 4C`S AND 7P`S (FedEx)

By

ABILASH OSMAN SUBHANK

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PROF.B.K.KUMAR

SBBA 15SBBA 01

Logistics & SCM


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Logistics & SCM Industry Outlook

Weve reached a tippingpoint in how the worldworks.

Value: $18.3 trillion in2010. (Global trade ofgoods and services)

Manufacturing and

emerging markets,including China, Indiaand Brazil, are leadingthe charge.

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Logistics & SCM Industry Outlook

Macroeconomic trendsthat drive global tradecontinue to intensify:

Production of high-tech

and high-value-addedgoods continues to rise.

Global sourcing andselling are increasing.

Supply chains are

accelerating. E-commerce crosses

Rs 66000 crore in India.

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LOGISTICS INDUSTRY PROJECTIONS AS PER FEDEX

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COMPANY

FedEx Corporation is a Delawarecorporation, incorporatedOctober 2, 1997

During one of his two combattours in Vietnam, Federal ExpressCEO Frederick Smith got a quick

lesson in survival from a crustyMarine sergeant. Lieutenant,the sergeant told Smith, theresonly three things you gottaremember: shoot, move, andcommunicate.(Fortune, Nov.

1997)

Provide a broad portfolio oftransportation, ecommerce andbusiness services

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INORGANIC GROWTH

On February 22, 2011, FedEx

Express completed the

acquisition of the

Indian logistics, distribution and

express businesses of AFL Pvt.

Ltd.and its affiliate Unifreight

India Pvt. Ltd. for $96 million in

cash

On December 15, 2010, FedExentered into an agreement to

acquire Servicios Nacionales

Mupa, S.A. de C.V. (MultiPack), a

Mexican domestic express

package delivery company.

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7

FedEx Market Segmentation

(Services)

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Company Statistics

Operating Facilities1,173 stations (659 U.S.; 514 outside U.S.) and 10air express hubs:

Dropoff Locations

689 FedEx World Service Centers

1,775 FedEx Office locations ( 21 cities in India)

6,453 FedEx Authorized ShipCenters and

Alliance Partners 41,503 FedEx Drop Boxes (including 4,991 US

Postal Service locations)

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Company Statistics

Airports Served:375 worldwide

Aircraft Fleet:

Total Aircraft:654 worldwide

(71 Airbus A300 - 600s ,56 Airbus A310 -200/300s, 13 ATR 72s, 26 ATR 42s ,79 Boeing 727- 200s ,1 Boeing DC10 - 10s, 6 Boeing DC10 - 30s,57 Boeing MD 10 - 10s ,12 Boeing MD 10 - 30s,57 Boeing MD 11s, 10 Cessna 208As, 242 Cessna208Bs, 24 Boeing 757-200s)

Airfreight Volume: More than 7.0 million poundsdaily

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Company Statistics

Vehicle Fleet: Aproximately 43,000 worldwide

FedEx Powerships: More than 100,000

FedEx Ships & FedEx Ship Manager atfedex.coms: More than 2.0 million

Average Call Volume: More than 500,000 calls

daily

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Company Statistics

Distance Driven Per Day: More than 2.7 million miles(United States only)

Annual Revenue (FedEx Corp):$35 billion (U.S. dollars)Employees: More than 140,000 worldwide

Countries & Territories Served: More than 220 countriesand territories

Average Package Volume: More than 3.4 million packagesdaily

Global Lift Capacity: Approximately 26.5 million pounds

daily

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STATISTICS

Federal Express

Corporation (FedEx

Express), the worlds

largest expresstransportation

company.

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13

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14

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1515/44

(Package Statistics In thousands)


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16

(Package Statistics In thousands)

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Notes on package statistics

IP(International Priority)package shipments

has become the main focus for FedEx.

The FedEx Freight segment returned to

profitability in the fourth quarter of 2011

primarily due to higher LTL Yield.

FedEx Ground segment continued its

exceptional performance, increasing volume,

yield and operating margins.(Hybrid Trucks)

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Notes on Statement Of Income

Despite the strength in our businesses and significantly

improved results, we incurred increased retirement plans and

medical costs, higher aircraft maintenance expenses, higher

costs associated with the restoration of compensation

programs curtailed during the recession and onetime costsassociated with the combination of our LTL operations

(described below) during 2011.

The combination of our FedEx Freight and FedEx National LTL

operations was completed on January 30, 2011.

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CASH FLOW STATEMENT AS ON MAY 31 2011 (IN MN $


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CASH FLOW STATEMENT AS ON MAY 31,2011 (IN MN $

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CAPEX PLAN

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They have 3 slogans: Relax, it's FedEx. The world on time.

When it absolutely, positively has to be there overnight.

COMMUNICATION

Were reaping the benefits of

the strategies we executed

during tougher times.

Driven by trade

Committed to superior

solutions

Energized by technology

Dedicated to energy efficiency

Focused on the future

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http://www.chacha.com/topic/fedexhttp://www.chacha.com/topic/fedex


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GLOBAL COMPETITORS

Risk of new entry by potentialcompetitors

The barriers to entry are veryhigh. One of the reasons thatthere is a high entry barrier is thehigh fixed cost associated with

establishing the internationaltransportation network.

This includes hubs, groundtransportation vehicles, air fleet,etc.

Additionally, existing companies

can take advantage of theabsolute cost advantage achievedby large volume of shipments andeconomies of scale.

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INDIAN COMPETITORS

R=Revenue

OPM=Operating

Profit Margin 27/44

900 cr(R);1.57 %

OPM

1036.95 cr

(R );

21.58 %

OPM

(R) 1577 cr

(R ) 90 cr

6.66% OPM

28,645.52 crore

(US$5.18 billion)
http://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crore


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Notes on OPM

Kuehne Nagel's air freight volume jumped 21

percent, outperforming the market, which is

estimated to have grown between 6 and 7

percent.

The company's specialized perishables network

drove the air freight expansion through

acquisitions in South America. Swiss logistics companies have higher OPM.

Agility Logistics operating in Kuwait has lowest

OPM. 30/44
http://www.joc.com/air-expeditedhttp://www.joc.com/cool-cargoes/kuehne-nagel-expands-perishables-networkhttp://www.joc.com/cool-cargoes/kuehne-nagel-expands-perishables-networkhttp://www.joc.com/air-expedited


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COSTS

31

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Customers

Aerospace & AviationTransporting aerospace and aviation equipment quickly andreliably around the globe takes deep international expertiseto avoid unnecessary turnaround time. Trust FedEx.

AutomotiveParts distribution is becoming increasingly complex, fromimport regulations to tariffs, currency exchange and security.We make it simple.

Fashion (apparel) & Luxury GoodsIn fashion and luxury, you need a shipping partner thatunderstands the changes of the seasons. Need automaticreplenishment? Thats where FedEx comes in.

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Customers

Health Care & Life SciencesMedical, pharmaceutical and diagnostics products are tooimportant to wait, especially if they require temperaturecontrol. At FedEx, we understand.

High-techTransporting computers, semiconductors and officeequipment takes a well-orchestrated network. Tap into theFedEx expertise.

FedEx Supply Chain ServicesWell help turn supply chain management and logistics intoa competitive strategy. So you can focus on what you dobest.

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CONVENIENCE

Convenient locations

There's no need to call for a pickup or wait in line.

Our more than 43,000 FedEx Express Drop Boxes are

conveniently located near where you work and play,such as in:

Grocery stores and shopping malls

Airports

Office buildings

FedEx Office locations

Select U.S. Post Office locations

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http://fedex.com/Dropoff/start?locale=en_UShttp://fedex.com/Dropoff/start?locale=en_US


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PEOPLE

Sponsor programs that provide retirement

benefits to most of their employees.

These programs include defined benefit

pension plans, defined contribution plans

and postretirement healthcare plans.

The accounting for pension and

postretirement healthcare plans includes

numerous assumptions, such as: discount

rates; expected longterm investment

returns on plan assets; future salary

increases; employee turnover; mortality;

and retirement ages. These assumptionsmost significantly impact their U.S.

Pension Plans.

390000 Employees

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PLACE Operating Facilities

1,173 stations (659 U.S.; 514 outside U.S.) and 10 air express hubs:

Asia Pacific:

Guangzhou, China

Canada:

Toronto, Ontario

Europe/Middle East/Africa:

Paris, France

Latin America-Caribbean:

Miami, Fla.

United States:

Anchorage, Alaska

Fort Worth, Texas

Indianapolis, Ind.,

Memphis, Tenn. (World Hub)

Newark, New Jersey

Oakland, Calif.

Memphis, Tenn. (World Hub)

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http://news.van.fedex.com/files/FedEx%20Express%20Hub%20in%20Anchorage.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Hub%20at%20Alliance%20Ft.%20Worth.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Hub%20in%20Indianapolis.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Super%20Hub%20in%20Memphis.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Hub%20in%20Newark.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Super%20Hub%20in%20Oakland.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Super%20Hub%20in%20Memphis.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Super%20Hub%20in%20Memphis.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Super%20Hub%20in%20Oakland.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Hub%20in%20Newark.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Super%20Hub%20in%20Memphis.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Hub%20in%20Indianapolis.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Hub%20at%20Alliance%20Ft.%20Worth.pdfhttp://news.van.fedex.com/files/FedEx%20Express%20Hub%20in%20Anchorage.pdf


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KEY SERVICES & PROCESSES

FedEx International Priority DirectDistribution

Consolidate multiple pieces from a single origin country

location to multiple recipients in a single destination country

(Single Point Of Clearance service) with cleared customs.

FedEx Critical Inventory Logistics

A comprehensive, end-to-end solution designed to optimise

the management of your critical inventory and service parts

distribution and returns process.

FedEx Fulfillment Services

Integrated fulfillment services that facilitate inbound,

outbound and reverse logistics. 38/44


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KEY SERVICES & PROCESSES

FedEx Returns Management ServicesA flexible, multi-channel suite of solutions allowingcustomers control of the returns process.

FedEx

Transportation ManagementOptimise the management of your international shipmentsacross all modes of transportation.

Cold Chain Services

Door-to-door temperature controlled internationaltransportation services.

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PRICING , PLACE & PROMOTION

Advertising and promotioncosts are expensed asincurred and are classifiedin other operatingexpenses.

Advertising and promotionexpenses were $375 millionin 2011, $374 million in

2010 and $379 million in2009.

Brand AmbassadorBillHaas

(Winner of the 2011 FedExCup-Golf)

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FedEx Rate Finder(w.r.t.PLACE)

Denotes required field Clear all fields 1. Ship From / To

Help Edit From: Bangalore, 560001, India | To: Delhi,110052, India

on August 27, 2012.

2. Package and Shipment Details

Package Details: 1 package, 0.20 kgs, Your Packaging, 5 cm x 1 cm x 10 cm, 2.00 INR.

3. Rates and Transit Times

Help Amounts are shown in INR Select Delivery

Date/Time Service Rates

Tue Aug 28, 2012 8:00 PM FedEx Priority Overnight Rs 254.00

Tue Aug 28, 2012 8:00 PM FedEx Economy Rs 470.00

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PHYSICAL EVIDENCE

Facilities Management

Track by TrackingNumberPlease enter at least 1tracking number.

Please limit your inquiryto 30 tracking numbers.Enter any combinationof up to 30 FedExtrackingnumbers: (one per line)

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PROD- PRICE PLACE PROMO PROCESS PEOPLE PHYSICALEVIDENCE
http://www.fedex.com/in/tracking/f_quickhelp.html?link=4&type=1http://www.fedex.com/in/tracking/f_quickhelp.html?link=4&type=1http://www.fedex.com/in/tracking/f_quickhelp.html?link=4&type=1http://www.fedex.com/in/tracking/f_quickhelp.html?link=4&type=1


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-UCT(SERVICE)

-TIONEVIDENCE

COM-

PETITOR

IR,India

n

PostalServices

GPO,

Freight,

Rs 14

per (kg)-

IRFreight

India One

India

Location

Tracker

IR-

1.4mn

IPS-466503

Facility

Design

Equip-Ment

Signage

Employ

-ee

Dress

OtherTangible

s

Report

Card

Guaran

tees

COST 95.23%ofSales on

an

average

Logistics

,SCM

IPS is

most

Competi

-tive

Most

Expensiv

e in

Switzerl

and

"neither

snow,

nor rain,

Location

Tracker

USPS-

574000

CUSTO-

MER

Importe

r

&Exporter

s

Financia

l

Services,Speed

Post

Courier

7% p.a

Tax free,

Rs 673To Aus.

(100g)

India What

can

BrownDo for

u-

UPS

Track

Shipmen

ts

218000

Truck

Drivers-USPS

CONVEN

IENCE

Home /

Office

Over

Night

Rs 254

B`lore

Drop

Off

Relax .

Its

Track

Shipmen

FedEx

Call

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THANK YOU

Documents

FedEx Original