Fedex Value Chain Analysis
Introduction
As industries are growing in developed as well as in developing market Logistics and Transportation industry is also growing and the major demand of logistic industry is from emerging economies where new industries are opening up and other businesses are also growing. There is a new segment because of which demand of logistics and transportation industry has increased tremendously and that segment is E-Commerce.
Globally logistics and transportation industry is growing at a rate of 15%.There are already big market players in the logistic industry who entered into the market in early nineties and since then they are growing and expanding their businesses into new regions, with this some small players are also entering into market.
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Smith, while doing his term paper at Yale University Smith noticed that the route used by courier companies is not economical for delivering urgent packets, later he discuss his idea with his teacher and his teacher didn’t like his idea. But after this smith figured out the way by which overnight deliveries can be performed in less time period. Then he started the company with the name “Federal Express” and open headquarter in Memphis. In 1975 company achieved its first profit and later in 1978 FedEx went private and registered itself on NYSE with the ticker symbol …show more content…
In both of these last miles deliveries are done by USPS in US (United States Postal Services).
FedEx Freight: It includes two types of services priority services and economy services, when speed is critical then priority services are used and when time is not critical then economy services are used. It offers LTL (less than truckload; those shipment which are less in size and weight, typically between 50 to 68 kg) shipping.
FedEx Services: FedEx Services is divided into three parts FedEx Services, FedEx Tech Connect and FedEx Tech Connect. This segment provides support services to FedEx and also to its customers.
FedEx Services provides sales, marketing, information technology support and backend support services under this segment, FedEx Tech connect provides customer support and technological support services, FedEx office services provide document and business support services.
Process
FedEx Process for shipment:
• The process of FedEx express starting form pick up of packages, these packages are picked up FedEx employees from ware houses, from business, customers and from drop
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