(Established under the Presidency University Act, 2013 of the Karnataka Act 41 of 2013)

SOM = SCHOOL OF MANAGEMENT

MBA IN LOGISTICS AND SUPPLY CHAIN MANAGEMENT

PREPARED BY: SAI SUMANTH G

REGISTRATION NO: 20212MLS0035

SUBJECT: CORPORATE STRATEGY [MBA3022]

FACULITY: Dr. MUTHUSWAMY RAMESH

ASSIGNMENT: FEDEX GLOBAL LOGISTICS CORPORATE STRATEGY

 TABLE OF CONTENTS

SL.No CONTENTS

1. Forward-Looking Statements
Unmatched Global Network Links More Than 99% of
World’s GDP
2. Board Portfolio of Services
3. Strategic Operating Principles
4. Bundle of Solutions
5. FedEx Long-Term Financial Goals
6. Positioning for Long-Term Growth

7. FedEx Business Trends Meeting E-Commerce Demands

8. Pricing Strategy: Grow Yields
8. FedEx Express: Long Term Opportunity
9. Aligning Synergies with Integration focused on
more complex, higher value markets
10. FedEx Ground Building a Better Business
11. Strong Portfolio of Residential Packing Services
12. FedEx Freight Competitive Advantages
13. Conclusion
 Forward-Looking Statements
Certain statements in this presentation may be considered forward-looking statements, such as
statements relating to management’s views with respect to future events and financial
performance and underlying assumptions. Forward-looking statements include those preceded
by, followed by or that include the words “will,” “may,” “could,” “would,” “should,”
“believes,” “expects,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends” or
similar expressions. Such forward looking statements are subject to risks, uncertainties and
other factors which could cause actual results to differ materially from historical experience or
from future results expressed or implied by such forward-looking statements. Potential risks and
uncertainties include, but are not limited to, the negative impacts of the COVID-19 pandemic;
economic conditions in the global markets in which we operate; anti-trade measures and
additional changes in international trade policies and relations; a significant data breach or other
disruption to our technology infrastructure; our ability to meet our labor and purchased
transportation needs while controlling related costs; our ability to successfully integrate the
businesses and operations of FedEx Express and TNT Express in the expected time frame and at
the expected cost and to achieve the expected benefits from the combined businesses; our ability
to successfully implement our business strategy, effectively respond to changes in market
dynamics and achieve the anticipated benefits and associated cost savings of such strategies and
actions, including our ability to successfully implement our FedEx Express workforce reduction
plan in Europe and to continue to transform and optimize the FedEx Express international
business, particularly in Europe; the future rate of e-commerce growth and our ability to
successfully expand our e-commerce services portfolio; damage to our reputation or loss of
brand equity; the impact of the United Kingdom’s withdrawal from the European Union and the
terms of their future trading relationship; the timeline for recovery of passenger airline cargo
capacity; changes in fuel prices or currency exchange rates; our ability to match capacity to
shifting volume levels; the impact of intense competition; evolving or new U.S. domestic or
international laws, government regulation or regulatory actions; future guidance, regulations,
interpretations, challenges or judicial decisions related to our tax positions; our ability to
effectively operate, integrate, leverage and grow acquired businesses, including Shop Runner,
Inc.; legal challenges or changes related to service providers engaged by FedEx Ground and the
drivers providing services on their behalf; an increase in self-insurance accruals and expenses;
changes in the business or financial soundness of the U.S. Postal Service; the impact of any
international conflicts or terrorist activities; our ability to quickly and effectively restore
operations following adverse weather or a localized disaster or disturbance in a key geography;
our ability to achieve our goal of carbon-neutral operations by 2040; constraints, volatility or
disruption in the capital markets and our ability to obtain financing; and other factors which can
be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the
Securities and Exchange Commission. Any forward-looking statement speaks only as of the
date on which it is made. We do not undertake or assume any obligation to update or revise any
forward-looking statement, whether as a result of new information, future events or otherwise.
 Unmatched Global Network Links More
Than 99% of World’s GDP

1. Over 220 countries and territories, every address in the U.S.

2. 684 aircraft and more than 200,000 motorized vehicles

3. More than 5,000 operating facilities; more than 650 airports served world
wide

4. Delivers 19m shipments per day

5. 570,000 team members worldwide

Broad Portfolio of Services

FY21 Revenues: $84 billion

Team Members: 570,000
Countries and Territories Served: More than 220

FedEx Express 42.1 Billion 50%

FedEx Ground 30.5 Billion 37%

FedEx Freight 7.8 Billion 9%

FedEx Other & elimination 3.5 Billion 4%

 Strategic Operating Principles
“Ultimately, this creates greater value for our customers and
shareholders alike”
- Frederick W. Smith, FedEx Corporation – Chairman & CEO

1. Compete Collectively
• FedEx brand unites distinct operating companies
• Significant majority of U.S. revenue derived from
customers that utilize two or more FedEx operating
companies

2. Operate Collaboratively
• Strategic shift to build a holistic approach that
leverages each operating company’s unique
expertise and network

3. Innovate Digitally
• Innovate digitally allows FedEx to build better
insights by using information from our network and
the world around it
 Bundle of Solutions
% of U.S. Revenue

FedEx Express
(FXE) 1.1%

FXE+FXG FXE+FXF
17.7% All 0.2%
Opcos
79.0%
FedEx Ground FedEx Freight
(FXG) 0.5% FXG+FXF (FXF) 1.3%
0.2%

• UR portfolio of solutions creates a strong value

proposition

• 97.1% of U.S. revenue comes from customers of

two or more operating companies

• We manage service offerings as a portfolio for the

benefit of our customers and FedEx

• Our collaborative operations enable our network

to increase efficiency and reduce cost-to-serve
FedEx Long-Term
Financial Goals
❖ Increase EPS 10%–15% per year
❖ Grow profitable revenue
❖ Achieve 10%+ operating margin
❖Improve cash flows
❖Increase ROIC
❖ Increase returns to shareowners
 Positioning for Long-Term
Growth

➢ E-commerce, including B2B e-commerce, is increasing demand

for our services
➢ FedEx Express integrating TNT Express and continuing to
transform and optimize the FedEx Express international business
while modernizing its aircraft fleet and major sort facilities
➢ FedEx Ground gaining profitable revenue share
➢ FedEx Freight focused on improving revenue quality and operating
margins
➢ FedEx service oriented culture remains strong
➢ million packages per day in calendar year 2022, with e-The U.S.
domestic parcel market is expected to reach 107 commerce
contributing 92% of total U.S. market growth
 FedEx Business Trends
Meeting E-commerce Demands

➢ Year-round, seven-day-per-week U.S. residential delivery by

FedEx Ground

➢ Significantly later pickup times offered with FedEx Extra

Hours services

➢ Expanding our retail convenience network with Walgreens,

Dollar General, and our own FedEx Office locations

➢ Building our network’s capabilities to more efficiently handle

an increase in large items

Trend
Pricing Strategy: Grow Yields

➢ Focused on long-term profitable growth

➢ FedEx Express and FedEx Ground increased shipping rates an

average of 4.9% in January 2021

➢ FedEx Freight increased rates an average of 4.9%-5.9% in January

2021

➢ Additional changes to fees and surcharges

➢ Implemented temporary peak surcharges due to a surge in

residential and international volumes and increased operations

costs

➢ Surcharges are continuing

 FedEx Express: Long-Term
Opportunity

➢ Integration of TNT will provide growth opportunities

and reduce operational costs

➢ Improving hub automation

➢ Modernizing air fleet for greater reliability and energy

efficiency

➢ Continuing yield management

➢ International revenue growth

 Aligning Synergies with
Integration focused on
more complex, higher value
markets

➢ Optimized Pickup & Delivery Operations

➢ Integrated Global Express Network

➢ Improved Efficiency of Staff Functions &

Processes(SG&A)

➢ Grow Revenue with Best-in-class Service Portfolio

FedEx Ground Building a Better
Business

➢ Superior service, innovation, and speed advantages

➢ Three distinct services: FedEx Ground, FedEx Home

Delivery, FedEx Ground Economy

➢ Flexible Business module

➢ Now operating seven-day residential delivery to virtually

all of the us population

➢ FedEx Ground is faster to more locations than UPS Ground

 Strong Portfolio of Residential
Packing Services

FedEx Express FedEx Ground

1-2 days transit times 1-5 days transit time
Time -definite Day-definite
MBG* MBG*
Declared value up to $50k Declared value up to $50k
Heavier-weight

FedEx Ground

2-8 days transit time

No MBG
No declared value
Lighter-weight
 FedEx Ground Revenue market
Share Has Groen to More Than
30%

$9 5%
0 0

$8
0
4%
$7 0
0
$6
0 3%
$5 0
0
$4
0 2%
$3 0
0
$2
1%
0
0
$1
0
$ 0%
0

CY98 CY99 CY00 CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18
CY19 CY20

FedEx Ground Revenue

FedEx Ground Revenue Market Share Total

Ground Market Revenue
FedEx Ground Annual Revenue
of $30.5B With a CAGR of 14%
Since FY01

$30

$27

$24

$21

$18

$15

$12

$9

$6

$3

$0
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

• FedEx Ground Revenue

 FedEx Freight Competitive
Advantages

➢ The only nationwide LTL that offers priority and Economy

services from one network

➢ Priority: Fastest published times of any nationwide LTL*

➢ Focused on improving margins with a better balanced of

volume, Pricing, and Capacity

➢ Expanding FedEx Fright Direct service for heavy and hard

to handle items requiring delivery inside the home or

business

➢ Investing in safety and efficiency improvement

LTL Industry Revenue Market
Share

3%
0 XP TFI ODF ABF Sai
2% FedE Yello O * L S a
5
2%
0
1%
5
1%
0
5%

0%
CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14
CY15 CY16 CY17 CY18 CY19 CY20

FedEx Commits to Goal to Achieve Carbon-

Neutral Operations by 2040
 Conclusion
➢ FedEx Logistics makes it easier to manage air and ocean
freight forwarding in Germany.

➢ As an experienced international air and ocean freight

forwarder, FedEx Logistics connects you with all major
global markets — inbound and outbound, intercontinental
and interregional.

➢ The Transportation & Logistics sector spans a wide range

of service offerings such as by air, road, rail, sea – as well
as related services such as warehousing, handling, and
stevedoring.

➢ Over the years, the sector has reshaped in manner where

most players have a tendency to consolidate; resulting in
larger, integrated groups operating in more than one of the
Transport & Logistics sub-services/sectors. As a result, the
limits between the sub-services/sectors become more and
more indistinct.
➢ The extent of coverage includes value added services such
as packaging, assembling, labelling etc. In addition to
these, Transport & Logistic providers undertake the
management role of planning, administering and
coordinating.