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Published byCollin Ellis Modified over 6 years ago
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Introduction First established as Federal Express, today’s FedEx Corporation is one of the most recognized brands for their express delivery system, FedEx earlier known as Federal Express is the World’s largest airline cargo carrier. It specializes in delivering parcels of every size and shape
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Vision & Mission The FedEx mission statement, its vision, begins with "FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served."
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SWOT Analysis Strengths :
1-Network in more than 220 countries and more than 290,000 employees worldwide. 2-Best use of technology . 3-High investment in IT systems. 4-more than three decades of experience in logistics services.
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Cont. Weaknesses : 1.More dependence on US market.
2. Since this is a competitive segment, the market share growth is limited.
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Cont. Opportunities 1.To use cooperative strategies .
2.Challenging competitors through mergers and acquisitions. 3.Local competitors with poor service & products.
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Cont. Threats: 1-Rising fuel prices could impact company’s profit .
2-Varying market demand.
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FedEx strategy 2016 Profit Improvement Initiatives to be Achieved by End of FY16 Efficiency of Staff Functions and Processes We are implementing several initiatives to improve our staffing efficiency and work processes to: Streamline major processes to reduce the time and resources they require. Prioritize vital activities and eliminate or defer functions that have become redundant due to technological, operational or market-driven changes. Generate greater efficiencies in our global sourcing programs.
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Modernizing our Air Fleet
We are replacing older aircraft with newer, more cost-effective and fuel-efficient aircraft. Our 757 and 767 programs create a next-generation air fleet that is designed to substantially reduces our operating costs. For example, based on a 750 nautical mile round trip, our trip costs will improve by: Up to 20% for the B757 versus A Up to 30% for the B767 versus MD10-30.
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U.S. Domestic Transformation
We are making adjustments to our U.S. network to improve our efficiency such as: Implementing new technology and processes to improve flight and crew scheduling. Adapting our pickup and delivery operations to maximize on-road efficiency. Refining aircraft maintenance processes. Implementing process changes that improve fuel efficiency for our aircraft and vehicle fleets.
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International Profit Improvement
Growing FedEx International Priority and expanding FedEx International First®. Utilizing available cargo space on passenger carriers for FedEx International Economy® shipments on certain lanes. Leveraging European expansion for greater densities and lower costs. Expanding freight forwarding and supply chain capabilities for new verticals like healthcare.
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Targeted Growth and Yield Management
At FedEx, we are focusing on delivering the right solutions for the right customers at the right price. We will continue to look for the right solutions in the marketplace and: Retain the majority of our annual rate increases. Remain willing to walk away from less-profitable accounts. Expand our small to medium-sized customer base.
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Recommendation In FY13, we stated we would meet the FedEx Express profit improvement goal — to exit FY16 with an annual run rate of $1.6 billion in additional operating profit — and we did it. Moreover, we believe FedEx Express profitability and productivity will continue to increase for years to come, assuming continued modest growth in the U.S. and global economies.
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