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BUSINESS POLICY
TOPIC:IC3 4C`S AND 7P`S (FedEx)
By
ABILASH OSMAN SUBHANK
1/449/2/2012
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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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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(Package Statistics In thousands)
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(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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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
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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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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,
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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