FedEx

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FedEx Corporation
TypePublic
Traded asNYSEFDX
S&P 500 Component
IndustryCourier
FoundedLittle Rock, Arkansas (1971)
as Federal Express Corporation
Founder(s)Frederick W. Smith
HeadquartersMemphis, Tennessee, U.S.
Area servedWorldwide
Key peopleFrederick W. Smith
(Chairman, President & CEO)
ProductsPost delivery, express mail, freight forwarding, third-party logistics
RevenueIncrease US$ 45 billion (2013)[1]
Operating incomeIncrease US$ 3.19 billion (2012)[1]
Net incomeIncrease US$ 2.03 billion (2012)[1]
Total assets
  • Increase US$ 33.567 billion (2013) [2]
  • Increase US$ 29.903 billion (2012) [3]
Total equityIncrease US$ 17.1 billion (2012)[1]
Employees300,000 (2012)[1]
SubsidiariesOffice, Express, Ground, Freight, Custom Critical, Supply Chain, Trade Networks, Services
Websitefedex.com
 
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FedEx Corporation
TypePublic
Traded asNYSEFDX
S&P 500 Component
IndustryCourier
FoundedLittle Rock, Arkansas (1971)
as Federal Express Corporation
Founder(s)Frederick W. Smith
HeadquartersMemphis, Tennessee, U.S.
Area servedWorldwide
Key peopleFrederick W. Smith
(Chairman, President & CEO)
ProductsPost delivery, express mail, freight forwarding, third-party logistics
RevenueIncrease US$ 45 billion (2013)[1]
Operating incomeIncrease US$ 3.19 billion (2012)[1]
Net incomeIncrease US$ 2.03 billion (2012)[1]
Total assets
  • Increase US$ 33.567 billion (2013) [2]
  • Increase US$ 29.903 billion (2012) [3]
Total equityIncrease US$ 17.1 billion (2012)[1]
Employees300,000 (2012)[1]
SubsidiariesOffice, Express, Ground, Freight, Custom Critical, Supply Chain, Trade Networks, Services
Websitefedex.com
FedEx DC-10 lands at Logan International Airport, Boston, Massachusetts USA

FedEx Corporation is an American global courier delivery services company headquartered in Memphis, Tennessee.[4] The name "FedEx" is a syllabic abbreviation of the name of the company's original air division, Federal Express, which was used from 1973 until 2000.

History[edit]

Fedex's first van displayed at the FedEx World Headquarters

FedEx Corporation is an import/export company, incorporated October 2, 1997 in Delaware.[5] FDX Corporation was founded in January 1998 with the acquisition of Caliber System Inc. by Federal Express. With the purchase of Caliber, FedEx started offering other services besides express shipping. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited shipping provider; Viking Freight, a regional, less than truckload freight carrier serving the Western United States; Caribbean Transportation Services, a provider of airfreight forwarding between the United States and the Caribbean; and Caliber Logistics and Caliber Technology, providers of logistics and technology solutions. FDX Corporation was founded to oversee all of the operations of those companies and its original air division, Federal Express.[6] In the 1980s, FedEx planned, but later abandoned, a joint service with British Airways to have BA fly a Concorde SST to Shannon, Ireland with FedEx packages on board, and then FedEx would have flown the packages subsonically to their delivery points in Europe. Ron Ponder, a vice president at the time, was in charge of this proposed venture. In January 2000, FDX Corporation changed its name to FedEx Corporation and re-branded all of its subsidiaries. Federal Express became FedEx Express, RPS became FedEx Ground, Roberts Express became FedEx Custom Critical, and Caliber Logistics and Caliber Technology were combined to comprise FedEx Global Logistics. A new subsidiary, called FedEx Corporate Services, was formed to centralize the sales, marketing, and customer service for all of the subsidiaries. In February 2000, FedEx acquired Tower Group International, an international logistics company. FedEx also acquired WorldTariff, a customs duty and tax information company; TowerGroup and WorldTariff were re-branded to form FedEx Trade Networks.[6]

FedEx Corp. acquired privately held Kinko's, Inc. in February 2004 and rebranded it FedEx Kinko's. The acquisition was made to expand FedEx's retail access to the general public. After the acquisition, all FedEx Kinko's locations exclusively offered only FedEx shipping.[6] In June 2008, FedEx announced that they would be dropping the Kinko's name from their ship centers; FedEx Kinko's would now be called FedEx Office.[7][8]

In September 2004, FedEx acquired Parcel Direct, a parcel consolidator, and re-branded it FedEx SmartPost.[6]

In December 2007, the U.S. Internal Revenue Service "tentatively decided" the FedEx Ground Division might be facing a tax liability of $319 million for 2002, due to misclassification of its operatives as independent contractors. Reversing a 1994 decision which allowed FedEx to classify its operatives that own their own vehicles, the IRS audited the years 2003 to 2006, with a view to assessing whether similar misclassification of operatives had taken place. FedEx denied that any irregularities in classification had occurred, but faced legal action from operatives claiming benefits that would have accrued had they been classified as employees.[9]

On October 22, 2008, the IRS withdrew its tentative assessment of tax and penalties for the 2002 calendar year ($319 million plus interest) against FedEx Ground Package System, Inc. (“FedEx Ground”) relating to the classification of FedEx Ground’s owner-operators for federal employment tax purposes.[citation needed]

In June 2009, FedEx began a campaign against United Parcel Service (UPS) and the Teamsters union, accusing its competitor of receiving a bailout in an advertising campaign called "brown bailout". FedEx claimed that signing the Federal Aviation Administration re-authorization bill, which would let some of its workers unionize more easily (and, according to the Memphis-based company, "could expose [its] customers at any time to local work stoppages that interrupted the flow of their time-sensitive, high-value shipments”),[10] was equivalent to giving UPS a "bailout". Independent observers heavily criticized FedEx's wording,[10] claiming that it was "an abuse of the term".[10] FedEx Express employees are regulated under the Railway Labor Act.[11]

As of 2012, FedEx has experimented with electric fleet vehicles.[citation needed]

On August 13, 2012, FedEx made offers of voluntary employee buyouts to cut costs; takers were expected to most likely to come from the express and services unit.[12]

On January 14, 2013, FedEx named Henry Maier CEO and President of FedEx Ground, to take effect after David Rebholz retired on May 31, 2013.[13]

Operating units and logos[edit]

FedEx is organized into operating units, each of which has its own version of the wordmark designed in 1994 by Lindon Leader of Landor Associates, of San Francisco.[14] The Fed is always purple and the Ex is in a different color for each division and platinum for the overall corporation use. The original FedEx logo had the Ex in orange; it is now used as the FedEx Express wordmark. The FedEx wordmark is notable for containing a hidden right-pointing arrow in the negative space between the "E" and the "X", which was achieved by designing a proprietary font, based on Univers and Futura, to emphasize the arrow shape.[14]

FedEx Ground delivery van
All electric FedEx Express van
FedEx Freight Truck
FedEx Kinko's (now FedEx Office)
FedEx Store

Kinko's until it was acquired by FedEx in 2004 and rebranded to FedEx Kinko's. In June 2008 the company was finally rebranded as FedEx Office.[21]

FedEx SameDay City allows a between: Standard, providing pickup by noon and delivery by the end of the day, or Priority, providing delivery within 2 hours.FedEx SameDay City is currently expanding in all major cities across the country and is planning on becoming its own operating unit in the next five years.

SCAC codes[edit]

The Standard Carrier Alpha Code (SCAC) is a unique code used to identify transportation companies. It is typically two to four alphabetic letters long. It was developed by the National Motor Freight Traffic Association in the 1960s to help the transportation industry for computerizing data and records. FedEx's codes include:

Political donations and lobbying[edit]

According to the Center for Responsive Politics, FedEx Corp is the 21st largest campaign contributor in the United States. The company has donated over $21 million since 1990, 45% of which went to Democrats and 55% to Republicans. Strong ties to the White House and members of Congress allow access to international trade and tax cut rebates as well as the rules of the business practices of the United States Postal Service. In 2001, FedEx sealed a $9 billion deal with the USPS to transport all of the post office's overnight and express deliveries.[22]

In 2005, FedEx was among 53 entities that contributed the maximum of $250,000 to sponsor the second inauguration of President George W. Bush.[23][24][25]

During the first three months of 2010, FedEx spent nearly $4.9 million lobbying the federal government (UPS, FedEx's main competitor, spent $1.6 million on lobbying over the same period), a 4% increase from the $4.7 million spent during the last quarter of 2009, but more than twice what it spent on lobbying during the first quarter of 2009.[26]

Awards and Honors[edit]

The firm was named by Fortune magazine as one of the top 100 companies to work for in 2013, citing the company's choice to downsize with voluntary buyouts rather than involuntary layoffs.[27]

Advertising[edit]

Some of FedEx's ad campaigns:

John Moschitta ad[edit]

In 1981, their advertising firm Ally & Gargano hired performer John Moschitta, Jr., known for his fast speech delivery, to do an ad for Federal Express titled "Fast Paced World". This single commercial would be cited years later by New York as one of the most memorable ads ever.[28]

Motorsports[edit]

Denny Hamlin driving the FedEx-sponsored No. 11 car at the 2012 Kobalt Tools 400

Badminton[edit]

Football[edit]

Other sports[edit]

See also[edit]

References[edit]

  1. ^ a b c d e "FedEx Corporation, Inc 2012 Annual Report, Form 10-K, Filing Date July 16, 2012". secdatabase.com. Retrieved Dec 26, 2012. 
  2. ^ "FedEx Corporation 2013 Q2 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. December 19, 2013. 
  3. ^ "FedEx Corporation 2012 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. July 15, 2013. 
  4. ^ "FedEx in Memphis". FedEx. Retrieved on February 28, 2010.
  5. ^ Delaware Department of State, Division of Corporations, Online Services; File No. 2803030.
  6. ^ a b c d FedEx History | About FedEx. About.fedex.designcdt.com. Retrieved on July 11, 2011.
  7. ^ " The Marketing Doctor Says: FedEx Does It Again!" Marketing Doctor Blog. June 3, 2008.
  8. ^ "FedEx Ditches Kinko's" Business Week. June 3, 2008.
  9. ^ Ron Da Parma (December 27, 2007). "IRS says FedEx may owe $319 million". Pittsburgh Tribune-Review. Retrieved 2008-01-03. 
  10. ^ a b c 'Brown Bailout?' Hardly, FactCheck.org
  11. ^ "UPS, FedEx "Brown Bailout" battle rages on". www.fleetowner.com. Retrieved June 16, 2010. [dead link]
  12. ^ Hsu, Tiffany (August 13, 2012). "FedEx offers buyouts to cut costs". Los Angeles Times. Retrieved August 13, 2012. 
  13. ^ "FedEx Corp. Announces Henry J. Maier to Succeed David F. Rebholz as President and CEO for FedEx Ground". fort mill times. Retrieved 14 January 2013. 
  14. ^ a b The Sneeze: The Man Behind the FedEx Logo, November 16, 2004
  15. ^ "WATS Scheduled Freight Tonne – Kilometres". International Air Transport Association. 2006. 
  16. ^ FedEx Ground | About FedEx. About.fedex.designcdt.com. Retrieved on July 11, 2011.
  17. ^ fedex service info – u.s. – home delivery. Fedex.com. Retrieved on July 11, 2011.
  18. ^ "Current Report Sept 2004, Inc 2004 Current Report, Form 8-K, Filing Date Sept 22, 2004". secdatabase.com. Retrieved Dec 26, 2012. 
  19. ^ Comments. Logisticsmgmt.com. Retrieved on July 11, 2011.
  20. ^ "FedEx Custom Critical Solutions". Retrieved September 18, 2013. 
  21. ^ FedEx Office | About FedEx. About.fedex.designcdt.com. Retrieved on July 11, 2011.
  22. ^ "FedEx Corp: Summary." Center for Responsive Politics. Retrieved on February 28, 2010.
  23. ^ Drinkard, Jim (January 17, 2005). "Donors get good seats, great access this week". USA Today. Retrieved May 25, 2008. 
  24. ^ "Financing the inauguration". USA Today. January 16, 2005. Retrieved May 25, 2008. 
  25. ^ "Some question inaugural's multi-million price tag". USA Today. January 14, 2005. Retrieved May 25, 2008. 
  26. ^ FedEx spends $4.9 million lobbying in 1st-quarter Bloomberg Businessweek. 2010-06-11. Retrieved June 21, 2010.
  27. ^ "100 Best Companies to Work For 2013 - FedEx Corporation - Fortune". CNN. 
  28. ^ "TV Acres Advertising Mascots". Retrieved September 18, 2008. 
  29. ^ FedExName will come off Orange Bowl, Sports Business Journal
  30. ^ Marketing and Advertising | About FedEx. About.fedex.designcdt.com. Retrieved on July 11, 2011.

External links[edit]