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Posted: March 3rd, 2022
FedEx Ground has annual revenue of 6 Billion dollars and a workforce of 70,000 including a ground fleet of 20,000. FedEx Ground has also surpassed FedEx Express by shipping an average of 3 Million Packages per day. Some items that are considered to differentiate them from competitors would be; people, customer service, technology and owner operators as contractors. In having owner operators (Entrepreneurs) as drivers, they provide more incentive and drive concern from contractors to make FedEx Ground successful.
Over the years FedEx has spend resources on continuous improvement in all aspects of their business, including the knowledge , skills, abilities and other attributes of their employees. FedEx Ground sends all management staff to FedEx University in Pittsburgh to enhance their knowledge on things such as operations, team building, and many other specialized areas. They also have FedEx University and skill soft via the company intranet, which is accessible to all employees. With these and many other methods they have continuously enhance one of their most important assets, their people.
With their talented staff they all follow one slogan which is called the Purple Promise, “I will make every FedEx Experience Outstanding” this saying is used within all FedEx interactions among co-workers and customers alike. FedEx has been awarded many prestigious awards from many companies such as Fortune 500; top 100 companies to work, Best in Diversity, CEO of the Year and many more. One of the major challenges FedEx Ground has faced would be the economic recession which all companies have been effected by. FedEx analyst actually were somewhat prepared for this type of situation should it ever occur.
FedEx started with eliminating any unnecessary costs such as company cars and minimizing expenses in June 2008 (very proactive, prior to the large hit). When the official Recession hit, FedEx did not hesitate to accurately adjust to these hard times, the following steps were taken; slim budgets where cut to almost nothing, cancelled employees kick-off saving 1 million dollars, not advertising in the super bowl, all US Management and above took a pay/bonus cut (CEO/ Directors 15%, executive 7% and management 5%).
However, considering all of these effective cuts they continued to grow their company facilities and locations throughout North America. Secondly, the shift in the economy also pushed Express overnight customers into the low-cost provider sector to save their own money, increase Ground. Due to all of these items FedEx Ground actually made more money this year than the last and has shown great stability. FedEx Ground has grown and developed since 2000 and now directly competes with a much older ground services such as UPS (who is now filing for bail-out) in America.
FedEx Ground currently is facing some pressure in America with the railway act which would make it very easy for the teamsters (unions) to gain access to unionizing all the FedEx Corp’s employees, which currently none are unionized. FedEx Philosophy FedEx attributes their success to their people-first philosophy, they believe in putting their people first, profit will follow after; People-Service-Profits.
FedEx Ground will be the best small-package company serving business and residential customers in North America. Under the FedEx Umbrella FedEx Ground Operates in a Corporation that provides many other essential services.
Such as; FedEx Express – Fast, reliable delivery to 211 countries with leading edge technology; FedEx Freight – leading provider of next-day and second day regional LTL freight services through America Freightways and Viking Freight; FedEx Custom Critical – fast action with safe, secure delivery of time-critical shipments, often the same day; FedEx Trade Networks – full-service customs brokerage, trade consulting and information technology, electronic clearance solutions and transportation and logistics services through Tower Group International, World tariff Limited and Caribbean Transportation Services; and FedEx Office – providing packaging, shipping, and paper and printing services.
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