FedEx busines to business Essay

Submitted By eloopers2004
Words: 2880
Pages: 12

On March 11, 1985, a start-up company called RPS put a label with 33 precisely spaced black lines on the outside of a package, and changed the direction that the small-package industry would travel from that day forward (FedEx). The precisely spaced black lines were a bar code and in the hands and minds of the innovative employees of RPS, this emerging technology made it possible not only to track a package’s movement, but also to sort it using automation, to speed it to its destination more efficiently, and to bill it more accurately (FedEx). RPS was a division of Roadway Services, which became Caliber System Inc. in 1996 (Wiki). By creating competitive advantages in the form of an independent contractor workforce, flexible pricing, package tracing that provided customers with relevant information about their packages, and many more “firsts,” the company quickly expanded and grew market share. In 1993 RPS exceeded $1 billion in annual revenue, just nine years after its creation, to record the fastest growth of any ground transportation company. By 1996, it offered 100 percent coverage of North America.
FedEx is led by FedEx Corporation, which provides strategic direction and consolidated financial reporting for the operating companies that compete collectively under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Networks, FedEx Supply Chain Solutions and FedEx Services. Originally called FDX Corp., FedEx Corp. was formed in January 1998 with the acquisition of Caliber System Inc (FedEx). Through this and future purchases, FedEx wanted 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. Subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited, exclusive-use shipping provider; Viking Freight, a regional, less-than-truckload (LTL) freight carrier serving the Western U.S.; Caribbean Transportation Services, a provider of airfreight forwarding between the U.S., Puerto Rico, the Dominican Republic and the Caribbean Islands; and Caliber Logistics and Caliber Technology, providers of integrated logistics and technology solutions (FedEx). These companies, along with worldwide express shipping provider Federal Express, comprised the original FDX Corp.
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 (Wiki). To centralize the sales, marketing, customer service and information technology support for FedEx Express and FedEx Ground, a new subsidiary named FedEx Corporate Services was formed and began operations in June 2000. RPS was officially rebranded FedEx Ground in January 2000 following the acquisition of the Caliber companies by FDX Corp. in 1998. Later in 2000, the company launched FedEx Home Delivery, a business-to-consumer service designed to help catalog and online retailers meet the needs of the residential market with standard features such as evening and Saturday deliveries. In September 2004, Parcel Direct became a subsidiary of FedEx Ground after FedEx Corp. acquired the leading parcel consolidator (FedEx). The service was later rebranded FedEx Smart Post and specializes in the delivery of low-weight packages from business to residential customers through a contract with the U.S. Postal Service®, which provides last mile delivery of the packages. Today, FedEx Ground is a leader in cost-effective, small-package ground shipping, offering dependable service to businesses and residential customers throughout the U.S. and Canada. The company includes more than 50,000 employees…