FedEx: Organizational Change
FedEx Corporation, one of the world's leading courier and express logistics companies based in Memphis, was founded in 1973 by Fred Smith and started its European operations in 1984. The company operates in 211 countries around the world and is divided into seven business units: FedEx Corporation, FedEx Express, FedEx Ground, FedEx Freight, and FedEx Customs.
Express is the reliable express delivery that delivers in 1-2 business days in 211 countries. Ground is what we are the most familiar with, specializing in door to door delivery. The trade network provides global e-customs clearance in brokerage and trade. Chain services provide information sales and marketing for FedEx. There is also Freight and Customs providing the transportation via train and air (FedEx Worldwide).
FedEx and Information Technology
FedEx, an Express and Transport company entered a fierce domestic market that was already dominated by some very well established companies, these being: United Parcels Services and US postal services.
Fred Smith believed that applying IT to its business, FedEx was able to leap frog the rest of the industry, by building a bridge between the physical and virtual worlds.
Today, approximately 90,000 Federal Express employees, at more than 1,650 sites process 1.5 million shipments daily, all of which must be tracked in a central information system, sorted in a short time at facilities in Memphis, Indianapolis, Newark, Oakland, Los Angeles, Anchorage, and Brussels, and delivered by a highly decentralized distribution network. The firm's air cargo fleet is now the world's largest.
In fact, according to the mission statement, they say, "FedEx Corporation will produce superior financial returns for its shareholders by providing high value-added logistics, transportation and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market...