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of 1968. Hazardous materials must be properly classified, described and packed according to the regulations and requirements.Business RelationshipsFedEx has customers all over the world however their primary customers are in the United States. 85% of FedEx customers are based in the U.S. Their second highest customers arein Great Britain with 5% of business and third is Canada with 2%. Fedex’s largest customer is the U.S. Postal Service. This seems a bit strange since FedExintroduced its overnight mail service in 1981 to compete directly with the USPS’s express mail service. However, in 2001, FedExsigned a deal to carry Express and Priority Mail for the USPS, that contract has been extended to 2024.10
RESEARCH PROJECT FEDEXAs stated, FedEx has a partnership with USPS for the delivery of overnight and priority mail. This is not the only partnership that they have. FedEx has partnered with Walgreens that will add 8,000 stores and use them as points of service for pick up and drop off pre-packaged items. FedEx also has a partnership with Newegg, their partnership includes an option on Newegg’s website that allows the customer to pick up their package at one of 2,500 FedEx locations in the U.S.Future PlansFedEx has six long term goals. Their first goal is to achieve a 10% operating margin. Their second goal is to increase Earnings Per Share 10%-15% per year. Goal number three is to grow profitable revenues. Goal four is to improve cash flows. Goal five and six is to increase the return of invested capital and to increase returns to shareowners. While reviewing their goals I found it strange that all of their goals were financial based and not logistics based. After a lengthy thought process, it makes sense. To make money, you must be doing something right.While reviewing the FedEx growth strategies this is where they incorporate their logisticsgoals. FedEx has five strategies to grow as a business. They want to grow core package business,grow internationally, grow their supply chain capabilities, grow through e-commerce and technology. Finally, grow through new services and alliances. Each of these starts with grow, as large as FedEx is, they want to continue to grow. This directly relates to achieving their long-term goals if they continue to grow.SummaryIt’s very evident why FedEx is a global leader in cargo movement. The vision of FredrickSmith continues with the outstanding customer support and delivery that FedEx provides. Their People-Service-Profit allow them to maintain loyal workers, customers and to continue to profit 11
RESEARCH PROJECT FEDEXin every aspect. FedEx uses an array of 400,000 motorized vehicles and are adapting hybrid vehicles for better fuel efficiency. FedEx also has over 650 aircraft for speedy air cargo transportation serving 375 airports worldwide in 220 Countries. FedEx also has a multitude of subdivisions, like FedEx Office and FedEx Supply Chain Management to assist with daily needs or future business adventures.