Flexibility And Speed Of Fedex Corporation Commerce Essay

FedEx Corporation ( FedEx ) provides transit, e-commerce and concern services. The company operates via four concern divisions: FedEx express, FedEx land, FedEx cargo and FedEx Kinko ‘s ( FedEx Corporation ND ) .

For case, as the largest gross beginning of FedEx Corporation, FedEx Express has extremely flexible and efficient services provided to clients with different demands, as is shown in Table 1:

Table 1 FedEx Services



Transit times

FedEx service

Service characteristics


Up to 68kg


Following twenty-four hours by 9am to 10am

FedEx Europe First

Proof of bringing

Money-back warrant

Cargo tracking

Dangerous goods accepted

Customss clearance included

Following twenty-four hours by 12 midday or terminal of concern twenty-four hours

FedEx International Priority


Following twenty-four hours by 8am or 8.30am

FedEx International First

Following twenty-four hours by 10.30am or 3pm

FedEx International Priority


Following twenty-four hours or up to 4 yearss

Between 68 and 1000kg


2-4 yearss

FedEx International Priority Freight


Up to 50kg


2-5 yearss

FedEx International Economy

Proof of bringing

Cargo tracking

Customss clearance included

Up to 68kg


4-6 yearss

Between 68 to 1000kg


FedEx International Economy Freight

Meanwhile, besides courier and cargo services, FedEx has a series of supply concatenation services every bit good ; the premier aim of FedEx Global Supply Chain Services ( FGSCS ) is to offer clients comprehensive and strategic supply concatenation direction and solutions, integrating FedEx transit and IT integrating in order to back up the specific demands of clients.


To derive a comprehensive planetary coverage, FedEx has an integrated planetary web, consisting 53,500 drop-off locations, more than 280,000 squad members worldwide, of which around 14,800 within Europe, every bit good as 684 aircrafts, 375 airdromes served worldwide and 80’000 vehicles and dawdlers.


At the really beginning of transporting goods by FedEx, clients could happen instructions for every type of cargo and will be guided step-by-step, either by well-prepared online applications or by phone. FedEx besides provide clients with uninterrupted cargo visibleness, which means clients can look into the position of their cargos across the universe in existent clip, measure by measure, through to bringing.


Since FedEx has a singular on-time bringing record based on the dependability of their systems, FedEx is confident plenty to offer a money-back Guarantee if they miss any published bringing clip by even 1 minute.

Strong trade name image

FedEx has a strong trade name image, which can be regarded as their top advantage. The company had been ranked first, in front of Deutsche Post and UPS, in the Fortune ‘s list of most admired companies in the bringing sub-segment during the past few old ages. FedEx is amongst the most accepted names in the Earth express bringing services section. The four concern divisions operate under the FedEx trade name name, and the trade name image makes it possible that while mentioning to show transit, the name ‘FedEx ‘ can emerges in the consumers ‘ head straightaway.

Part a…?

However, while making so many values for their clients. Their supply concatenation sometimes suffers from assorted force per unit areas.

Pressure 1: High operating costs

In order to supply the clients with diverseness and efficiency, the complexness of organisation would increase correspondingly. As a consequence, non merely the operating but besides the labour costs are important. Given a negative illustration, in 2004, simply by deviating dying company to its Web site, FedEx saved every bit much as $ 1.87 per call. FedEx claimed its call centres handled 83,000 fewer calls per twenty-four hours than in 2000-which was 470,000 calls per twenty-four hours at that time-a economy of 57.56 million dollars per twelvemonth ( Gage 2005 ) .

Pressure 2: Great chance to run into extended competition

Because of the big graduated table of their concern, FedEx has bigger possibilities to confront intense competition peculiarly in the cargo and express bundle markets. The competitions in this industry is chiefly based on factors such as monetary value, extent of geographic coverage, ability to track bundles, frequence and capacity of scheduled service, dependability and advanced service offerings. Its cardinal rivals worldwide include other bundle bringing companies, chiefly UPS, DHL, TNT, Royal Mail, regional express bringing workss, rider air hoses offering express bundle services and airfreight forwarder. Most of its cardinal rivals such as UPS and DHL have strong international operations peculiarly in Europe, which could set FedEx at a competitory disadvantage ( Datamonitor 2007 ) .

Pressure 3: Increasing transit cost

FedEx is exposed to fuel hazard originating from runing one of the largest conveyance fleet. As a consequence of increased oil monetary values, higher transit costs had a significant impact on stuffs disbursal of the company. For case, due to the skyrocketing fuel costs, in the twelvemonth 2008 FedEx reported a financial fourth-quarter loss of $ 241 million, compared with a year-earlier net income of $ 610 million. Furthermore, for the full financial twelvemonth, the company reported runing income of $ 2.08 billion, down 37 per centum compared to the old financial twelvemonth. Net income dropped 44 per centum to $ l.l3hillon ( FedEx Corporation 2008 ) .

Pressure 4: Low error tolerance

As FedEx makes their services backed by the money-back warrant, in order to offer shippers the ability to have time-definite cargos, there is less opportunity for them to detain the transit by even 1 minute. For non merely do the bearers lose gross from these cargos, it is dearly-won and time-consuming for them to treat the claims and adjust their invoicing ( Sailor 2003 ) . Finally, even though the bundle was delivered “ late, ” the bearers still sustained the cost to present the bundle to the consignee.

Pressure 5: Large advertisement cost

FedEx promotes its trade name through big measure of broadcast and print advertisements, corporate sponsorships, and particular events, which can convey it important cost. For case, the company ‘s advertisement disbursals amounted to $ 374 million in 2010, $ 379 million in 2009 and every bit big as $ 445 million in 2008. ( FedEx Corporation 2010 )


For any company, it is indispensable to understand who its client is and what its client truly values. Based on these values, possible merchandises can so be developed. While making this, the company has to cover with the force per unit area that these values put on its supply concatenation. Therefore, it ‘s important for the company to construct appropriate supply concatenation scheme, otherwise the force per unit areas on the supply concatenation may take to serious effects.


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