Company Overview

FedEx Express courier delivering box

FedEx Express Strategy

FedEx Express has a plan to improve profitability and secure the long-term viability of our business in the years to come. We will do this by focusing on the things we do best and the areas of our business with the greatest growth potential.

Our goal is to deliver $1.6 billion of improved annual operating profit for the segment by the end of FY16, through five major initiatives.

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Profit Improvement Initiatives to be Achieved by End of FY16

Efficiency of Staff Functions and Processes

Efficiency of Staff Functions and Processes

We are implementing several initiatives to improve our staffing efficiency and work processes to:

  • Streamline major processes to reduce the time and resources they require.
  • Prioritize vital activities and eliminate or defer functions that have become redundant due to technological, operational or market-driven changes.
  • Generate greater efficiencies in our global sourcing programs.

In support of the business realignment initiatives listed above, in FY13 we offered a voluntary buyout program to eligible U.S.-based employees in order to adjust our organizational structure.

Efficiency of Staff Functions and Processes

Modernizing our Air Fleet

We are replacing older aircraft with newer, more cost-effective and fuel-efficient aircraft. Our 757 and 767 programs create a next-generation air fleet that is designed to substantially reduces our operating costs.

For example, based on a 750 nautical mile round trip, our trip costs will improve by:

  • Up to 20% for the B757 versus A310-200.
  • Up to 30% for the B767 versus MD10-30.
Efficiency of Staff Functions and Processes

U.S. Domestic Transformation

We are making adjustments to our U.S. network to improve our efficiency such as:

  • Implementing new technology and processes to improve flight and crew scheduling.
  • Adapting our pickup and delivery operations to maximize on-road efficiency.
  • Consolidating facilities and stations.
  • Refining aircraft maintenance processes.
  • Implementing process changes that improve fuel efficiency for our aircraft and vehicle fleets.

We will make improvements like these without compromising the outstanding service quality our customers have come to expect.

Efficiency of Staff Functions and Processes

International Profit Improvement

We are diversifying our business to capture growth from all parts of the global cargo market, including priority, economy, ocean and air forwarding, and critical inventory logistics. Our focus is on:

  • Growing FedEx International Priority® and expanding FedEx International First®.
  • Utilizing available cargo space on passenger carriers for FedEx International Economy® shipments on certain lanes.
  • Leveraging European expansion for greater densities and lower costs.
  • Integrating and achieving synergies on recent acquisitions.
  • Expanding freight forwarding and supply chain capabilities for new verticals like healthcare.
Efficiency of Staff Functions and Processes

Targeted Growth and Yield Management

At FedEx, we are focusing on delivering the right solutions for the right customers at the right price. We will continue to look for the right solutions in the marketplace and:

  • Retain the majority of our annual rate increases.
  • Utilize the Revenue Management Committee to optimize yield, market share and profitability growth.
  • Remain willing to walk away from less-profitable accounts.
  • Expand our small to medium-sized customer base.
  • Leverage opportunities from FedEx Delivery Manager℠ and FedEx One Rate℠.

Latest Annual Report

FedEx Corporate Brochure

Date Download
June 1, 2014 View Online