Federal Express




FEDERAL EXPRESS

Since 1971, time sensitive packages and letters have been delivered safely and punctually to anyone, anywhere in the world. Often times, the contents of these packages contain life saving materials. The company that makes efficient delivery possible is Federal Express. FedExís guaranteed overnight delivery, or your money back offer, makes it a unique and highly trusted company. Many aspects go into making this company work like a well-oiled machine; including packaging, the variety of modes of transporting, and the ability to track the where abouts of the package from any place in the world. With these attributes nearly perfected, FedEx has truly "made the world small" (Kinney, 6-10).
From its relatively humble beginnings in 1971, to its current world dominance; what makes FedEx such a well-oiled machine?
HISTORY
This year marks the 28th anniversary of the founding of Federal Express. These have been 28 remarkable years that have transformed the way the world does business. From their early Falcon flying days operating in a few U.S. cities, to the global express powerhouse they are today, they have remained dedicated and committed to providing their customers the best possible service possible. FedEx began operating in 1971, and is now the world\'s largest express transportation company. The founder of this company is Fred Smith, currently the President and CEO of FedEx. FedEx was founded with the goal to move packages. Fred Smithís idea was different, his new company had an amazingly fresh concept - to devote a fleet of jets to overnight delivery. Smith came from a long line of transportation entrepreneurs and learned to fly at the young age of 15. In 1969, he purchased Arkansas Aviation with the goal of doing something more than merely selling aircraft, as had been the businessís sole purpose in the past. As a political science and economics major at Yale, Smith had done extensive research on challenges facing pioneering firms in the information-technology industry. Through his research he determined that reliability and speed had never been strengths of cargo services, as they were typically sent on passenger planes on daytime flights, making next day deliver nearly impossible. Also, shipment outside of large cities required many transfers or was simply not available (Kinney, 47). Smith decided that Federal Express could streamline operations by shipping all packages to a central point for sorting and then reloading onto planes. After this was accomplished, the packages would then be flown to their destination. Smith discovered this style of shipping by observing how the banking industry collected canceled checks at sorting locations and then distributed them to individual banks (Kinney, 54). In 1971, Fred Smith incorporated Federal Express and went in search of investors. He was just 27 years old. Many of the people he approached with his new idea thought his plan was impossible and questioned the need for this type of service. Smith ended up putting up $4 million of his own money and, with the aid of investors, who eventually added an additional $80 million, began Federal Express (Kinney, 55). In the beginning, FedEx had twelve cities in the East and Midwest as delivery sites, and a small sales staff, who labored to establish accounts in those places. A small fleet of Dassault Falcons awaited the packages, with couriers ready to pick up and deliver them in cars and vans. In 1973, Fed Ex had grown to include 389 employees, 25 U.S. cities, and their fleet had grown to 14 Falcons. Today, FedExís headquarters are world wide, with locations in Tennessee, Asia, Canada, Brussels, Belgium, and Latin America. These headquarters employ more than 145,000 people worldwide, and serve 210 countries with the aid of 625 aircraft flying in and out of 366 airports. However, none of this would be possible without the aid of the approximate 1,400 world service centers and over 2,400 FedEx ship sites around the globe (FedEx Service Guide, 3-7). An incredible volume of packages are shipped each day. The average package volume is more than 3.2 million daily, weighing approximately 20.6 million pounds overall. The average call volume exceeds 500,000 calls per day with the approximate number of electronic shipments being 63 million. The distance driven per day equals more than 2.7 million miles within the United States alone (www.fedex.com/us/, 4-22-99). These statistics