 COMPANY: Federal Express (FedEx)

 DREAM & VISION: Overnight air express venture.

 MISSION: To provide our customers with totally reliable,
competitively superior global air/ground transportation of high priority
goods and documents that require rapid, time certain delivery.

 CEO: F R E D E R I C K W. S M I T H , Yale University Graduate.

Executed the vision in 17 APRIL 1973,It’s a start of new services
industry, FEDREL EXPRESS.
First 10 years revenue was $1 billion dollar, at that time FedEx was the

only company to top that much revenue.

It become world’s largest air cargo.

a. 420 Aircraft.
b. 94,000 Employees.
c. Move 300 Million Packages Each Year.
d. To 170 Countries.
Fe d e r a l E x p r e s s w a s t h e p i o n e e r o f t h e “ H U B a n d
SPOKE”
a. Pickup,
b. Sor ting, and
c. Deliver y network.
In 1990, in the service companies category FedEx became
winner of first M a l c o l m B a l d r i g e N a t i o n a l Q u a l i t y
Award.
T h e k e y t o s u c c e s s a n d t h e d e f i n i t i o n o f Fe d E x
a c c o rd i n g t o t h e i r a n n u a l re p o r t a re ;
a. Our intense focus on the NEEDS OF CUSTOMERS.
b. Commitment to CONTINUOUS QUALITY
IMPROVEMENT.
Service strategy and system are based on:
a. Reliability
b.High priority goods
c. Quick delivery
Integrated Sales Force:
a. Additional resources (17,000) to support the strategy.
b. 250 extra sales professionals in fiscal year 1991.
c. Single person is accountable to understand and respond of
customer’s needs.
Standard Overnight Service: (SOS)
a. Quick delivery (next business day by 3pm).
b. Initially charged 5 pounds.
c. In 1990, the charge increased to 50 pounds.
Overnight Freight Service (OFS):
a. Launched in 1991 in the United States
b. Next day by noon delivery for packages weighing up to 500
pounds
c. 2 day freight service with a delivery commitment of 4:30 pm
EXPRESS Freighter:
a. In August 1989, it was merged with Flying Tigers
b. In January 1991, Federal Express launched a new concept
named “Express Freighter”
c. The concept capitalizes on Federal Express strengths: global
route authorities, enormous lift capacity, worldwide
integrated information network, and growing sales and
marketing capability throughout the world
d. It contains a
e. It changed its name to “FEDEX international Express Freight
Service (IXF)”.
Powership Systems:
a. A computer contains location.
b. This system allows speed up the shipping process.
c. Label preparation, online package tracking, daily self
invoicing, and international paperwork preparation.
d. Over one third of revenue each day is generated through
Powership systems.
e. Its use has grown dramatically by 60 %.
FSTCLEAR System:
a. It is a worldwide electronic customs clearance system that
speed up the process of clearing dutiable goods
b. The system revolutionized the process by which dutiable
goods are cleared through custom clearance.
c. This system started to work immediately after the package
leaves its origin station.
d. Custom agents can see the shipments through electronic
manifesting.
 In 1990 FedEx won the Baldrige award. The full
form of this award ''The Malcolm Baldrige
National Quality Award'' (MBNQA).

 It is presented annually by the President of the

United States to organizations that demonstrate
quality and performance excellence.

 Because of his never ending journey CEO of

FedEx Fred Smith called the award “our license
to practice.”
 FedEx also achieved its best performance on service quality indicators
(SQIs).

 When they focused on quality so the performance was increased and

operating cost went down. Due to which customer's satisfaction with
FedEx service raised up with 12% as compared to previous.

 According to Fred Smith that such improvement results talented and

capable leadership.
 Corporate Philosophy: “People, Service, Profit.”
 Customer Satisfaction is “everything”.
 Total Quality Management (TQM) will continue to be
Federal Express’s single greatest management task in to
the 90’s.
 The story of FedEx from the beginning was of;
a. Continuous Improvement.
b. Efforts to eradicate errors.
c. Customer Satisfaction to reach 100%.
 Customer Satisfaction begins with Employee
Satisfaction.
 Interaction with customers are transient.
 Highly motivated workforce.
 The purpose of FedEx is to gain and keep customers.
 Organization Hierarchy: FLAT where External
Customer is on top.
5 layers of management between non- management
people and executive suite.
 An Inverted Traditional Hierarchical Pyramid.
 Employee Empowerment.
a. Working together.
b. Freedom of decision-making.
c. Well-intentioned efforts equivalent to successes.
 Goal-Setting procedures and practices.
a. Organization effectiveness departments.
b. Bonuses contingent upon achieving goals.
c. SQI points.
d. Well-informed employees.
 Communication

a. Formal Communication.
b. Survey Feedback Action (SFA) program.
c. The Guaranteed Fair Treatment procedure.
d. Internal Grievance process.
e. Live FXTV network.
 Training & Testing of employees.
 Rewards for discretionary performances.
a. Circle of Excellence award.
b. Golden Falcon.
c. Bravo Zulu
 COSMOS, the virtual link in SuperTraker computer system.
 Quality management & quality measures
a. Service Quality Indicators (SQIs).
b. Quality Action Teams (QATs).
c. Employee Involvement.
d. Customer Surveys.