Formerly known as FDX Corporation, FedEx Corporation is a logistics services company located in Memphis, Tennessee. Incorporated in October 2, 1997, the FDX Corporation was founded in January 1998 together with the possession of Caliber Systems Inc. by Federal Express. With this acquisition, the company managed to offer other services besides express shipping. These services include RPS, a small-package ground service; Viking Freight, a less-than-truckload freight carrier serving the Western part of the United States; Roberts Express, an expedited shipping provider; Caribbean Transportation Services, an airfreight forwarding company that services Caribbean and United States; and lastly, the Caliber Logistics and Caliber Technology, these division offers logistic services and technology solutions.
The name “FedEx” was taken from the company’s original air division, Federal Express. The syllabic abbreviation was used from 1973 until 2000. After January 2000, Federal Express became FedEx Express; Roberts Express became FedEx Custom Critical; RPS became FedEx Ground; and Caliber Technology and Caliber Logistics became FedEx Global Logistics. To centralize the company’s sales, customer service and marketing, a new subsidiary was formed called FedEx Corporate Services. The year 2000 brought tremendous change for the company as they acquired Tower Group International, a well-known international logistics company. World Tariff, a customs duty and tax information company was acquired and together with Tower Group, the company re-branded the two to form FedEx Trade Networks.
Privately held company Kinko’s Inc. was acquired by the company in February 2004 and renamed it as FedEx Kinko’s. The newly acquired company helped in expanding FedEx retail access to the general public by exclusively offering FedEx shipping. In June 2008, FedEx Kinko’s was changed to FedEx Office. Many acquisitions followed after that and slowly but surely FedEx became a household name.
By January 2009, FedEx Corporation was named by Fortune’s magazine’s list of the “100 Best Companies to work for” in the United States. The magazine also recognized the company’s commitment to diversity and women, and based on the top 100 list FedEx is the largest company in terms of the number of employees and the only transportation company. Honored 11 times for the past 12 years, FedEx gained it spot to the Best Companies to Work For Hall of Fame in 2005. And not just that, the company has been consistently ranked in FORTUNE’s Global Most Admired Companies. For two consecutive years (2001 and 2002), FedEx was in America’s Most Admired Companies list.
Based in Memphis Tennessee, FedEx Express is one of the world’s largest cargo airline company in terms of freight tons flown. The world’s second largest in terms of fleet size; FedEx Express is a subsidiary of FedEx Corporation who’s responsible of delivering packages and freight to more than 375 destinations around the globe. Originally founded by Fred Smith in Little Rock, Arkansas, the company started in 1971 and started its overnight operations in April 17, 1973 with the help of fourteen Dassault Falcon 20s that connected twenty-five cities in the United States.
FedEx Express managed to have overnight and two-day package and enveloped delivery services, including Courier Park. After the success of these services, the company started marketing itself as the freight service company through the use of the 550-mile-per-hour delivery trucks. But after awhile the company experienced some financial difficulties that made them lost a million dollars a month. Because of this the company installed its first drop box in 1975, this strategy allowed the customers to drop off their packages without going to the company’s local branch. This made the company gained its financial freedom with an average volume of 19,000 parcels per day.
FedEx Rapid Growth
With the company’s rapid growth there is no other way but up. Due to the removal of restrictions on the routes operated by all-cargo airlines, FedEx Express purchased its first large aircraft: seven Boeing 727-100s. After the company’s bold move FedEx Express went public and was listed on the New York Stock Exchange. After a year, the company became the first shipping company to use a computerized package management when they launched “COSMOS” (Customers, Operations and Services Master Online System), a centralized real time computer system that manages the company’s packages, people, vehicles and weather scenarios. By the year 1980, FedEx Express employed “DADS” (Digitally Assisted Dispatch System) to help coordinate on-call pickups for customers. The system is unique that it allows customers to schedule pickups for the same day.
The launching of Fedex.com made the company more accessible to its customers. This is the first transportation website that offers online package tracking, which allowed customers from any parts of the world to conduct business via the internet. In 1995, FedEx acquired air routes from Evergreen International to begin its business to China, and simultaneously opened an Asia and Pacific Hub, in Subic Bay International Airport in the Philippines. After two years, the Forth Worth Alliance Airport hub was opened and in 1999 the European hub was finally opened at Charles de Gaulle International Airport in France. Due to its international success the company dropped the “Federal Express” name and officially renamed the company as “FedEx Express” to highlight the express shipping service from other services offered by its parent company FedEx Corporation.
Opening different hubs in all parts of the world is what the company is trying to achieve to further expand its services. By December 2006, the company managed to acquire the British courier company ANC Holdings Limited and that acquisition added 35 sort facilities to the FedEx network. Newark, Indianapolis and Memphis routes were opened directly to UK airports instead of stopping to France. By 2007, ANC was rebranded as FedEx UK. To expand its services in Eastern Europe, the company also acquired the Flying-cargo Hungary Kft.
The company’s reputation gained the trust of the United States Postal Service which made them earned a 7-year contract to transport express mail and priority mail. The contract allowed the company to place drop boxes at every USPS post office and after the end of the contract they managed to extend it until 2013. USPS is still the biggest customer of FedEx Express.