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The transportation and logistics industry is critically important to our economy and society. Usually taken for granted, transportation and logistics are responsible for movement not only the movement of goods and people, but also the exchange of ideas and technology. Without transportation and logistics, we would all remain inescapably in conditions similar to those experienced by our prehistoric ancestors. It is difficult to imagine that at one time, a persons entire universe was limited to an area bounded by how far that person could walk. Human inventiveness eventually emerged to give us means of transport, first by beasts of burden and then by crude vessels. These modes of transportation were continuously improved upon, but only over the centuries.
Transportation was revolutionized by the invention and application of the engine, first steam-powered and later fueled by various derivatives of petroleum. Air travel, introduced in the early 20 th Century, created yet another leap in transportation capabilities. Throughout this period the time required for moving between two distant points has continuously decreased, literally from months to hours. The growing ability to move people and products has allowed mankind to open up new territories and establish full communication between different regions and societies. This increasing interconnectedness has indelibly shaped our way of life. Improvements in logistics have been accomplished in parallel with advances in modes of transportation.
The field of logistics has become increasingly sophisticated and has come to encompass all aspects associated with the flow of physical materials, both within and between firms. The fundamental parameters of logistics are speed, reliability, distance and coverage. Performance in each of these areas has improved steadily over time, particularly with the introduction of advanced information technologies. One of the central forces behind the efficiency and productivity gains witnessed over the past two decades has been the injection of logistics systems, such as just-in-time inventory control, into companies operations. The aim of our researching work to find and discuss the main logistic companies such as FedEx, UPS and DHL. First of all we are discussing the history of each companies, after economic situation, marketing strategy etc.
FedEx Corporation will produce superior financial returns for its share owners by providing high value-added logistics, transportation and related information services through focused operating companies. Customer service requirements will be met in the highest quality manner appropriate to each market segment served. FedEx Corporation will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations.
Corporate activities will be conducted to the highest ethical and professional standards. In August of 1971 following a stint in the military, Smith bought controlling interest in Arkansas Aviation Sales, located in Little Rock, Ark. While operating his new firm, Smith identified the tremendous difficulty in getting packages and other airfreight delivered within one to two days. This dilemma motivated him to do the necessary research for resolving the inefficient distribution system. Thus, the idea for Federal Express was born: a company that revolutionized global business practices and now defines speed and reliability.
Federal Express was so-named due to the patriotic meaning associated with the word "Federal, " which suggested an interest in nationwide economic activity. At that time, Smith hoped to obtain a contract with the Federal Reserve Bank and, although the proposal was denied, he believed the name was a particularly good one for attracting public attention and maintaining name recognition. The company incorporated in June 1971 and officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. Competitors were trying to catch up to a company whose growth rate was compounding at about 40 percent annually. In fiscal year 1983 Federal Express reported $ 1 billion in revenues, making American business history as the first company to reach that financial hallmark inside ten years of start-up without mergers or acquisitions. Originally called FDX Corp. , FedEx Corp.
was formed in January 1998 with the acquisition of Caliber System Inc. Through this and future purchases, FedEx sought to build on the strength of its famous express delivery service and create a more diversified company that included a portfolio of different but related businesses. In January 2000, FedEx unleashed the power of its global brand. In a move to further integrate the company's portfolio of services, FDX Corp.
was renamed FedEx Corporation. In addition, Federal Express became FedEx Express, RPS became FedEx Ground, Roberts Express became FedEx Custom Critical, and Caliber Logistics and Caliber Technology were combined to make up FedEx Global Logistics. To centralize the sales, marketing, customer service and information technology support for FedEx Express and FedEx Ground, a new subsidiary named FedEx Corporate Services (FedEx Services) was formed and began operations in June 2000. Today's FedEx is a family of companies that share a rich heritage of innovation and industry leadership. While each company has a unique history, collectively they exhibit the "absolutely, positively" dedication to providing specialized solutions for every shipping, information and global trade need that the world has come to expect from FedEx. FedEx Corporation FedEx Express FedEx Ground FedEx Freight FedEx Kinko's FedEx Custom Critical FedEx Trade Networks FedEx Supply Chain Services In January 2001, FedEx Global Logistics was realigned to streamline the organization and further improve customer service.
FedEx Supply Chain Services became part of FedEx Services and Caribbean Transportation Services became part of FedEx Trade Networks. The following month, FedEx Corp. finalized the acquisition of American Freightways, a leading LTL freight carrier serving 40 states in the eastern two-thirds of the U. S. , and rebranded American Freightways and Viking Freight as FedEx Freight. In December 2003, FedEx Corp. announced it would acquire privately-held Kinko's Inc. , a move that was mutually beneficial for both companies.
For FedEx, it meant expanded retail access to all of the 1, 200 Kinko's stores, enhanced FedEx document management services and a broader reach to customers of all sizes. For Kinko's, the move added the resources and expertise needed to continue expansion of its corporate document outsourcing business and international operations. All 1, 200 Kinko's locations worldwide offer new or expanded FedEx shipping options for greater customer convenience, including more than 400 stores that operate 24 hours a day, seven days a week. All the companies obtained through FedEx Corp. acquisitions, in addition to diversifying the FedEx services portfolio, also exhibited the same "absolutely, positively" spirit that FedEx is known for possessing which made the companies a good fit. Today, FedEx Corporation is the premier provider of shipping and information services worldwide, and its companies function under the motto of "operate independently, compete collectively. " By operating independently, each company can focus exclusively on delivering the best service for its specific market.
Competing collectively under the trusted FedEx banner ensures that all of the companies benefit from one of the world's most recognized brands. The express package and freight markets are both highly competitive and sensitive to price and service. The ability to compete effectively depends upon price, frequency and capacity of scheduled service, ability to track packages, extent of geographic coverage, reliability and innovative service offerings. Competitors in these markets include other package delivery concerns, principally United Parcel Service, Inc. ("UPS"), DHL Worldwide Express, Airborne Express, passenger airlines offering express package services, regional express delivery concerns, airfreight forwarders and the U. S. Postal Service.
FedEx Express's principal competitors in the international market are DHL Worldwide Express, UPS, foreign postal authorities such as Deutsche Poste and TNT Post Group, passenger airlines and all-cargo airlines. FedEx Express currently holds certificates of authority to serve more foreign countries than any other United States all-cargo air carrier and its extensive, scheduled international route system allows it to offer single-carrier service to many points not served by its principal all-cargo competitors. This international route system, combined with an integrated air and ground network, enables FedEx Express to offer international customers more extensive single-carrier service to a greater number of U. S. domestic points than can be provided currently by competitors. Many of FedEx Express's competitors in the international market, however, are government-owned, -controlled, or -subsidized carriers which may have greater resources, lower costs, less profit sensitivity and more favorable operating conditions than FedEx Express.
Comparison with FedEx the DHL company is older one. In 1969, Adrian Casey, Larry Hill blom and Robert Lynn (D, H, and L) founded DHL as a service shuttling bills of lading between San Francisco and Honolulu. The company grew rapidly and in a few years initiated service to the Philippines, Japan, Hong Kong, Singapore and Australia, creating an entirely new industry of international door-to-door express service in the Pacific Basin. Steady expansion continued in the 1970 's as DHL initiated service to Europe (1974), Latin America (1977), the Middle East (1978) and Africa (1978). The international delivery company was the first to bring air express to the Eastern Bloc countries in 1983 and to the People's Republic of China in 1986.
In 1907 there was a great need in America for private messenger and delivery services. To help meet this need, an enterprising 19 -year-old, James E. (Jim) Casey, borrowed $ 100 from a friend and established the American Messenger Company in Seattle, Washington. According to accounts given by Jim there were quite a few messenger services already in the Seattle area, some of which he had worked for in the past. That initial name was well-suited to the business pursuits of the new company. In response to telephone calls received at their basement headquarters, messengers ran errands, delivered packages, and carried notes, baggage, and trays of food from restaurants. They made most deliveries on foot and used bicycles for longer trips.
Only a few automobiles were in existence at that time and department stores of the day still used horses and wagons for merchandise delivery. It would best years before the United States Parcel Post system would be established. Jim and his partner, Claude Ryanran the service from a humble office located under the sidewalk. Jim's brother George and a handful of other teenagers were the company's messengers. The company did well despite stiff competition, largely because of Jim Casey? s strict policies of customer courtesy, reliability, round-the-clock service, and low rates.
These principles, which guide UPS even today, are summarized by Jim? s slogan: best service and lowest rates. FedEx rapid growth reflects the globalization of trade. As customers expand into international markets, FedEx is there to meet their needs. Today, FedEx is the world's largest and most experienced international air express network with service to 120, 000 destinations in more than 210 countries and territories. FedEx Express's global transportation and distribution services are provided through an extensive worldwide network consisting of numerous aviation and ground transportation operating rights and authorities, 643 aircraft, approximately 48, 000 vehicles and trailers, sorting facilities, FedEx World Service Centers, FedEx Drop Boxes, FedEx Ship Sites and FedEx.
Authorized Ship Centers, as well as sophisticated package tracking, billing and communications systems. Of that total, over two-thirds are owned and operated by DHL, far greater than any other company in the air express industry. As a result, DHL has a significant advantage over other air express carriers who use more third party agents in the foreign countries they serve. DHL is also a licensed customs broker in more than 140 countries.
FedEx has continuously expanded its geographic scope and coverage. Beginning with service provided to 25 U. S. metropolitan areas, FedEx has increased its network to encompass virtually all of the United States, first by integrated air / ground service (FedEx Express) and later by ground (FedEx Ground).
In addition, the FedEx Express network has been extended to some 210 countries encompassing 99 percent of the worlds economic activity. Achieving this feat has required FedEx to play an aggressive role in reducing or eliminating regulatory barriers. The corporation played a major leadership role in fomenting air and trucking deregulation in the United States and has been a relentless champion of open skies and open markets overseas. These advantages result in faster transit times, streamlined customs clearance, effective tracking of shipments and simplified billing.
This allows for the rapid and efficient movement of shipments, resulting in fast, reliable and cost-efficient service. There are 250 aircraft operating for or on behalf of FedEx. This gives FedEx the flexibility to use the fastest possible means of transportation to any given destination. Customer caring is the main aim of FedEx Company. Reductions of $ 1. 3 billion in business inventory and carrying costs for FedEx clients over the 1993 - 2000 period and potential operating cost savings of 15 - 20 percent for FedEx clients, $ 27. 4 billion in logistics cost savings for customers in 2000 is one of the most useful achievement during these last years. As important as these facilities and equipment are to supporting FedEx global network, it is the worldwide team of FedEx more than 245, 000 people who came from different places and different backgrounds to rally around a common mission and promise to do whatever it takes to meet their needs and whose commitment to anticipating, understanding and meeting each customer's unique shipping needs, DHL has 150000 professionals.
FedEx establish of $ 27 -billion U. S. air express market and integrated express transportation with revenues of about $ 45 billion and more than 400, 000 employees. FedEx is a global provider of transportation, e-commerce & supply chain management services, offering integrated business solutions through a network of independently operating subsidiaries.
For the FY ended 5 / 31 / 03, revenues rose 9 % to $ 22. 49 B. Net income before accounting change rose 14 % to $ 830 M. Results reflect volume growth at FedEx Ground and in international express shipments and improved operating margins. FedEx Ground periodically publishes list prices in its Service Guide for the majority of its services. In general, during 2003, U.
S. shipping rates were based on the service selected, destination zone, weight, size, any ancillary service charge and whether the shipment was picked up by a FedEx Ground contractor or dropped off by the customer at a FedEx Ground location. FedEx Ground has a dynamic fuel surcharge, which applies to all shipments. The surcharge percentage is subject to monthly adjustment based on a rounded average of the national U. S. on-highway average price for a gallon of diesel fuel as published monthly by the U.
S. Department of Energy. For example, the fuel surcharge for June 2003 was based on the average diesel fuel price published for April 2003. Changes to the FedEx Ground fuel surcharge, calculated according to the rounded index average and FedEx Ground trigger points, are applied effective from the first Monday of the month. The comparison price politics we can see in the Appendix 1. Dramatic gains from transportation industry deregulation, spearheaded by FedEx.
Total transportation costs fell from 7. 4 percent of GDP in 1980 to 6. 0 percent of GDP in 1999. Total logistics costs fell by nearly 6 percentage points during the same time period, from 15. 7 to 9. 9 percent of GDP. Direct employment of 166, 000 in 2000, with payroll / benefits of $ 7. 2 billion. Direct / indirect jobs of 550, 000 created by FedEx.
Direct / indirect output (through multiplier) estimated at $ 52 billion in 2000. Contributions to 34 percent fall in U. S. inventory-to-sales ratio since the 198 0 s and 1980 - 1999 to cost savings of $ 1. 3 trillion due to $ 4. 6 -trillion reduction in business inventories. Contributions to productivity boom, reduced business cycle risk and growth of high technology regional economies.
FedEx Corporation and its subsidiaries recognize that effective environmental management is one of its most important corporate priorities. We are committed to protecting and respecting the environment through outstanding environmental performance and efficiency in the conduct of its operations. When we compare the financial data of FedEx and UPS, we see that Fedex revenue is 2. 3 billion US dollars, UPS 2. 1 billion. FedEx Ground experienced revenue and earnings growth during 2003 and 2002. Operating margins improved in 2003 in spite of increased intercompany charges for sales, marketing, customer support and information technology costs. Operating expenses in most categories increased at a lower rate than the growth in revenues during 2003.
In addition, FedEx Ground realized substantial improvements in pick-up and delivery and line haul productivity. In 2003, FedEx Ground unveiled a $ 1. 8 billion, six-year expansion plan to nearly double its daily package olume capacity from 2. 5 million to 4. 8 million by the end of 2009. The multi-phase plan includes the addition of 10 new central distribution hubs and the expansion of 23 existing central distribution hubs, as well as the expansion or relocation of more than 300 existing facilities. To meet its long-term package processing needs, FedEx Ground expects to open new hubs in the Memphis, Dallas and Cincinnati areas and in Hagerstown, Maryland by 2006.
Six more new hubs will be strategically located by the end of 2009. Worked Cites: Industry Focus: Freight & Logistics FedEx Annual Report 2003 web UPS Annual Report 2003 web DHL Annual Report 2003 web White Paper - Managing Working Capital web D. Snijders, "Global Company and World Financial Markets, " in Financing the World Economy in the Nineties, J. J. Sijben, ed. (Dordrecht, Netherlands: Kluwer Academic Publishers, 1989) Thorson, Esther (Ed). 1989.
Advertising Age: The Principles of Advertising at Word. Lincolnwood, IL: NTC Business Books. J. F. Report and J. J.
Sviokla. Managing in the Market space. Harvard Business Review, 72, 6, 1994: 141 - 150.
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