Presentation is loading. Please wait.

Presentation is loading. Please wait.

Scott Hallford Vice President, Government Affairs FedEx Express Essential Trade Infrastructure: Express Delivery Services March 15, 2002.

Similar presentations


Presentation on theme: "Scott Hallford Vice President, Government Affairs FedEx Express Essential Trade Infrastructure: Express Delivery Services March 15, 2002."— Presentation transcript:

1 Scott Hallford Vice President, Government Affairs FedEx Express Essential Trade Infrastructure: Express Delivery Services March 15, 2002

2 History of FedEx 1973 – Began operations as first integrated air/ground express carrier Delivered 186 packages to 25 U.S. cities using 14 Falcon jets. Today, FedEx connects more than 211 countries in less than 24-48 hours, & delivers 3.3 million packages daily using 667 dedicated aircraft (the worlds largest all-cargo fleet)

3 Growth of the Express Delivery Industry Increase in high-tech & high-value added products as a % of all economic activity Rapid globalization in the marketplace Fast-cycle logistics Emergence of the Internet & e-commerce

4 Express Delivery Express delivery services consist of: The expedited collection, transport, & delivery, Of documents, printed matter, parcels, and/or other goods, While tracking the location of, & maintaining control over, such items throughout the supply of the service

5 Life Before FedEx Have you ever used express delivery? What was it like to get a letter, document or goods delivered rapidly, securely and on-time?

6 Express Delivery Industry has become the leading facilitator of trans-continental trade International air cargo accounts for about 2 percent of the tonnage moved, but over 40 percent of the total value of those goods For every $1 spent on express transportation, companies can save $1.50 in warehousing & inventory costs Express Delivery Industry

7 U.S. Experience – Memphis Approx. 53,000 direct and indirect jobs Since early 1980s, over 130 foreign- owned firms from 22 countries employing 17,250 workers Companies such as Nike, Apple Computer and Disney established based on proximity to FedEx

8 U.S. Experience – Memphis From 1995-2000, company relocations and expansions generated - 10,000 new jobs - Over 12 million square feet of new space - Over USD 710 million in new investment Economic impact on the surrounding region from 1995 - 2004 is estimated at USD 90 billion

9 What Does a Modern Economy Need? Philips Semiconductors, Inc. business need - Consolidate & centralize international supply chain - Customers frustrated due to consistently late shipments - No visibility of goods in transit due to multi-carrier network - Growing pipeline of inventory due to extended transit time

10 Philips Semiconductors, Inc Source plants spread over 17 countries Each plant had different shipping operation requiring Philips to manage a network of 30 airlines, 6 customs brokers & 8 freight carriers Fragmented supply chain meant a 2 week total transit time

11 Philips Semiconductors, Inc Information about product in transit incomplete & delivery schedules unpredictable Customers demanded more speed & reliability Began stocking buffer supplies in additional depots near customers adding inventory

12 Philips Semiconductors, Inc What other industry could respond to this??? The FedEx Solution: One-stop transportation, warehousing & distribution network with extensive international capability

13 Philips Order Management System

14 Todays Marketplace – Global SMEs want to reach new markets Multinationals want to ensure efficiency Explosion of e-commerce - Internet-enabled commerce in US to reach USD 3 trillion in 2004 (both B2B and B2C)

15 FedEx Hub-and-Spoke System FedEx collects & transports shipments from the door of the shipper to sorting hubs located in the U.S., Europe & Asia Shipments are unloaded, sorted & transloaded w/in 4 hours onto outbound planes for a time definite, customs- cleared, delivery to the door of the recipient as early as 8:am the next business day

16

17 In 1999, approx. $50 billion in economic benefits generated from exports, imports, transportation and employment – 30 billion in export benefits – 20 billion in import benefits – Approx. 350,000 jobs created Benefits of the Express Delivery Industry in ASEAN

18 Creating the Express Delivery Infrastructure GATS commitments in express delivery services - Remove barriers and limit new barriers - Certainty of existing market conditions Trade facilitation - Partnership in infrastructure development


Download ppt "Scott Hallford Vice President, Government Affairs FedEx Express Essential Trade Infrastructure: Express Delivery Services March 15, 2002."

Similar presentations


Ads by Google