FedEx Express System Form
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1 National Defense Transportation Association FedEx Express System Form Frank LeRose VP Global Network Planning and Operations Control
2 What is System Form? Term used to describe the planned movement of all products and services throughout our global linehaul system.
3 The Mission of System Form Execute a safe and legal operation 100% service integrity Providing recovery and flexibility Optimize efficiency: Maximize asset utilization Minimize capital and expense
4 FDX facts - $35.5B in revenue, 280,000+ employees, 8M daily shipments, 220+ countries served, 660 Aircraft, 80,000+ vehicles, 42 hubs, 2,000+ pickup/delivery centers FedEx Express provides expedited delivery to every US address and more than 220 countries. FedEx Trade Networks simplifies international shipping for customers, providing flexible end-to-end services that include customs brokerage, global cargo distribution and trade solutions. FedEx SupplyChain enables customizable solutions for customers around the world. FedEx Ground provides cost-effective, small-package shipping with business-to-business delivery. FedEx Home Delivery serves virtually 100 percent of the U.S. population with a residential-only network of guaranteed delivery options to meet customer needs FedEx SmartPost specializes in the delivery of low-weight, less time-sensitive business-toconsumer packages, using the U.S. Postal Service for final delivery to residences. FedEx Freight provides differentiated freight solutions for customers who value service consistency and reliability. FedEx National LTL provides cost effective, time definite, less-than-truckload freight delivery services. FedEx Custom Critical provides the fastest, 24/7, door-to-door delivery of urgent freight utilizing its service fleet for ground-expedited service and providing an array of air options. FedEx Services provides Sales, Marketing and IT services to all FedEx operating companies. FedEx Office (formerly Kinko's) provides access points to printing and shipping expertise with reliable service when and where needed. FedEx Customer Information Services provides customer contact centers, worldwide revenue operations, claims, trace and package engineering within FedEx.
5 People First Philosophy People Service Profit Employees - Customers - Shareholders Maximize compensation - Maximize core service values: - Maximize wealth: and intrinsic value: Challenging work assignments Convenience: Maximum return on investment Favorable work environment Accessibility Long-term business viability Flextime Consistency/Predictability Proven track record Stock Option / Equity compensation Ease of transaction Industry leader Additional vacation time Variety Strong financial performance Support career / Family values Speed EPS Everyday casual dress code Low cost Increasing Stock Price High quality Supervision/Leadership Value = Quality / Price Dividend Visionary technical leadership Value added services Cross-functional assignments Product/Service Bundle Tuition Reimbursement / Matching 401K Expanded product portfolio Differentiated - Above & Beyond competition
6 System Form Planning Structure Long Range Planning 5 year and beyond horizon Business Planning 18 month to 4 year horizon Current Schedules & Operating Plans 0 to 6 month horizon Global Operations Control 7/24 daily planning Schedule Compliance & Review Plan versus actual trend analysis
7 The Planning Process Turning Data into Information Geographic Coverage Legal & Regulatory Issues Product forecast / Day Strategic Vision Airport / Facility / Property Constraints Handling Characteristics & Service Types Operational Constraints Planning Tool Product Routings Turning Art into Science Standardize & Maintain Dynamic Inputs Increase Ability to Communicate and Address Numerous Variables: Automate Manual Functions Improve Communications: Multiple & Accessible Mediums Capital Requirements Loadplans Service Area / Zip Coverage Hub / Sort Volumes Linehaul Schedule Staffing / Expense Needs 100% Quality; Meet or Exceed Expectations Reduce Cycle Time
8 Contingency Operations 7 X 24 Global Oversight Variations to system form can occur daily due to unforeseen events Weather Maintenance Volume driven by customer needs Operational Anomalies Options for service recovery Proactive Pulse Recovery Network Spare aircraft (static / hot / flying) Reactive Redirect volume to an alternate mode or hub Change gauge to larger aircraft Divert aircraft from other airports Utilize spare aircraft Disaster Recovery And Contingency Operations (DRACO) Business Continuity Relief Operations
9 Questions? Frank LeRose Vice President FedEx Express Global Network Planning and Operations Control (901)
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