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FedEx Supply Chain Presentation

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by

Lauren O'Brien

on 13 August 2013

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Transcript of FedEx Supply Chain Presentation

"Operate independently, compete collectively and manage collaboratively"
FedEx Timeline
FedEx Supply Chain
Overview
Supply Chain Challenges
FedEx Corporation
Agenda
Stephanie Cha
Emily Lan
Katherine Landry
Lauren O'Brien
Michelle Sygulski

FedEx
FedEx Corp companies operate independently
better service
benefit from brand name
Introduction Video
Overview of the Company
Supply Chain Operations
Supply Chain Challenges
Current Solutions for Challenges
Suggestions for Improvement
FedEx Express
FedEx Ground
FedEx Freight
FedEx Office
FedEx Custom Critical
FedEx Trade Networks
FedEx Supply Chain Solutions
FedEx Services
January 1998
Originally named FDX Corp, FedEx Corp was formed with the acquisition of Caliber System Inc
Federal Express
RPS
Roberts Express
Viking Freight
Caribbean Transportation Services
Caliber Logistics and Technology
January 2000
Federal Express --> FedEx Express
RPS --> FedEx Ground
Roberts Express --> FedEx Custom Critical
Caliber Logistics and Technology --> FedEx Global Logistics
June 2000
Introduction of FedEx Services
Centralize sales, marketing, customer service, information technology support
February 2004
FedEx Corp acquired Kinko's Inc
FedEx Kinko's --> FedEx Office
Challenges of 2012
Volatile Fuel Prices
Indirect Rising Costs
Instability of Economies Across the Globe
Leadership Transition
Fuel is a vital component of the transportation industry
FedEx uses over 90,000 motorized vehicles to provide delivery service
Service charges may increase
Profits may decrease
Price increase and net income decrease
Current Solutions
Volatile Fuel Prices
Vehicle Fleet Fuel Efficiency Goal
light duty vehicles that operate with electric power
electric trucks & sprinter vans
more fuel efficient by 2020
GPS Tracking Key Pro & SilverCloud
Invested $4 billion to modernize air fleet
Indirect & Uncontrollable Rising Costs
Focus on Quality Driven Management System
Retirement of David F. Rebholz
Long transition period -Rebholz retires in May 2013
Henry J. Maier is currently Executive Vice President at FedEx Ground
Sources
financial turmoil
in Europe
decrease in exports
from Asia
aftermath of the financial crisis in 2008
Healthcare Plan: Obamacare
Doctors, hospitals, insurance companies
Budgets for transportation services decrease
FedEx Healthcare Shared Network
Services pharmaceutical products industry
Energy Costs
Expenses to maintain distributing centers will increase
FedEx Office costs will rise exponentially
Prices of services and products will suffer
inflation
David Rebholz
CEO and President of FedEx Ground
Held title since 2007
Officially retires on May 31, 2013
Transition period
Henry. J. Maier
Future CEO of FedEx Ground
Promotion will include leadership in:
1. FedEx Ground
2. FedEx Home Delivery
3. FedEx SmartPost
Balancing responsibilities will be difficult
Our Suggestions
Volatile Fuel Prices
Continue goal of eco-friendly and fuel efficient transportation
Find the best routes to destinations that use the least fuel
Instability of Economy Across the Globe
Try a more local focus and lean away from the deteriorating European Economy
Form a trade agreement with Asian countries that provide essential resources
Attempt to substitute foreign imports with local ones
Indirect and Uncontrollable Rising Costs
Cut back on energy usage
Make sure all lights not in use are turned off
Use lower-watt lightbulbs
Minimize machine downtime
Retirement of David F. Rebholz
Continue to have Rebholz train and share knowledge with Maier
Create a contract with Rebholz that would make him available for help/questions for 6 months after his retirement
Subsidiary founded in 1989
Supply chain as a competitive strategy
Dedicated to providing clients with reduced costs and customer service
Provide solutions that leverage supply chain networks
Critical Inventory Logistics
Fulfillment Services
Transportation Management
Healthcare Shared Network
http://www.fedex.com/us/supply-chain/services/critical-inventory-logistics/FCIL_FINAL_06_12.pdf

http://about.van.fedex.com/fedex_supplychain

http://www.fedex.com/us/supplychain/services/

http://about.van.fedex.com/fedex-opco-history

http://www.bizjournals.com/pittsburgh/news/2013/01/15/maier-named-fedex-ground-president-ceo.html

http://fedexannualreport2012.hwaxis.com/Letter.aspx

http://about.van.fedex.com/fedex_corporation

http://investors.fedex.com/phoenix.zhtml?c=73289&p=irol-newsarticle&ID=1743347
Quality Driven Management System: how to respond to the pressures of business environment
Focused on shipment planning
End-to-end transportation
Provides customers with efficiency and customer service
Optimize transportation costs
Provides centralized, multi-client distribution centers
Extend service day
Complete management processes
Temperature control and monitored facility
Operates only within the U.S.
Pharmaceutical and diagnostic product industries
Temperature controlled and prompt delivery
Closed-loop network
Minimizes shipment splits
Outsourced logistics operations
Improves visibility, speed, and controls
Global network of strategically placed hubs
Provides a range of service times
Innovative technology
Customer support 24 hours a day
Full transcript