POWERING GLOBAL CONNECTIONS - About FedEx
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A CONNECTED WORLD IS A BETTER WORLD EVERY DAY, FEDEX CONNECTS THE WORLD, turning dreams into reality. Handing off a lifesaving medication the same day it was ordered. Providing supply chain solutions for complex fulfillment needs. Bringing desperately needed aid to survivors of natural disasters. Delivering online orders across the globe. Connecting people with goods, services, ideas and technologies fuels global commerce, which in turn creates jobs, generates prosperity and lifts communities to higher standards of living. That’s why we champion new solutions and innovative technologies that redefine how the world is connected. 1
A PORTFOLIO OF SOLUTIONS FEDEX BY THE NUMBERS > 450K TEAM MEMBERS THE STRENGTH OF FEDEX lies in our corporate structure and our people. By managing our WORLDWIDE services as a portfolio of operating companies, we can fine-tune our networks to deliver connecting the best service and value possible. > 99% OF GLOBAL GDP We make it easy for customers to seamlessly access all the services they need in one moving place and meet any global business challenge that comes their way. >15M SHIPMENTS EACH BUSINESS DAY (AVG. DAILY VOL.) to > 220 COUNTRIES AND The largest express Cost-effective Priority and economy TERRITORIES transportation company business and residential less-than-truckload (LTL) in the world. package shipping. freight shipping. Marketing, sales, IT Global transportation, supply Print and copy services, and customer service chain, trade/customs and shipping pickup and solutions for customers. e-commerce solutions. delivery, and same-day courier service. 2 3
Anchorage Liège Cologne Paris Toronto Oakland Indianapolis Newark Memphis Greensboro Shanghai Fort Worth Guangzhou FEDEX EXPRESS GLOBAL NETWORK Our 13 hubs connect 220+ countries and territories, Air Routes (Includes FedEx Express and more than 99 percent of the world’s GDP. and Interline Routes) Major Hub Locations 4 5
FEDEX EXPRESS FEDEX EXPRESS The service that started it all has exponentially expanded our customers’ access to the world. We now connect to BY THE NUMBERS 99 percent of the world’s gross domestic product (GDP), CONNECTS shipping packages and freight with a comprehensive range of services designed to meet customer needs. > 240K TEAM MEMBERS THE WORLD WORLDWIDE Whether customers need a part delivered overseas or across town, we have it covered. Our powerhouse global moving network provides reliable, time-definite integrated express transportation services to the U.S.; Canada; Asia Pacific; > 6M PACKAGES AND Europe; Middle East, Indian Subcontinent and Africa; and Latin America and Caribbean. In addition to a full portfolio of intercontinental air express services, FedEx > 30M LBS. OF FREIGHT Express now provides domestic shipping services in (AVG. DAILY VOL.) over 35 countries. through 13 MAJOR HUBS > 650 AIRPORTS using 678 AIRCRAFT* > 85K MOTORIZED VEHICLES to > 220 COUNTRIES AND TERRITORIES *Grossavailable aircraft; includes parked. 6 7
TNT ENHANCES OUR GLOBAL NETWORK TNT offers express and economy delivery services for documents, parcels and palletized freight in the U.S.; Canada; Asia Pacific; Europe; Middle East, Indian Subcontinent and Africa; and Latin America and Caribbean. The addition of this company combines a second-to-none European road network with the robust international air network of FedEx Express. 8 9
FEDEX GROUND FEDEX GROUND BY THE NUMBERS OFFERS FAST, >115K TEAM MEMBERS ECONOMICAL DELIVERY moving > 9M PACKAGES Due to the rise of e-commerce, fast, cost-effective and dependable ground delivery is more (AVG. DAILY VOL.) vital than ever before. We anticipated this trend — making significant investments in our ground network — and now FedEx Ground, which offers business-to-business delivery in through the U.S. and Canada, is faster to more locations than UPS Ground. We also serve residences via FedEx Home Delivery® and FedEx SmartPost®, with Saturday a standard delivery day for many shipments — an important feature for e-commerce shoppers. > 600 FACILITIES using > 65K MOTORIZED VEHICLES 10 11
FEDEX FREIGHT FEDEX FREIGHT BY THE NUMBERS SIMPLIFIES LTL > 45K TEAM MEMBERS SHIPPING moving >115K SHIPMENTS Simple is better. So FedEx Freight offers two reliable (AVG. DAILY VOL.) options: FedEx Freight® Priority, with the fastest published transit times of any nationwide less-than-truckload (LTL) through service, and FedEx Freight® Economy for basic LTL freight shipping needs. We ship throughout the U.S., Canada, ≈370 Mexico and Puerto Rico, and to the U.S. Virgin Islands. SERVICE CENTERS For less-urgent, larger LTL heavyweight freight using shipping needs, we offer FedEx Freight® volume services throughout most of the contiguous U.S. > 25K MOTORIZED We work with customers to find the best rate for VEHICLES their schedule and budget by taking advantage of unused truck space. 12 13
FEDEX HELPING ENTREPRENEURS REACH THE NEXT LEVEL SERVICES When Danny Catullo took over his family’s butcher shop, Catullo Prime Meats was CONNECTS struggling in a stagnant economy. Catullo realized he needed to expand his market by entering the e-commerce space. BUSINESSES His product needed to stay fresh during shipping, so he turned to FedEx. He was TO SOLUTIONS impressed by the personal attention he got from his account representative, who helped him find the right combination of packaging and shipping solutions. “What surprised me FedEx Services team members coordinate sales, about FedEx is that they care about small marketing, communications, information technology businesses as much as I do,” Catullo says. and customer service support for the FedEx global brand. We integrate the technology and services customers Then in 2013, his rep mentioned the need to create solutions for global supply chains, new FedEx Small Business Grant Contest, e-commerce or any of today’s business challenges. an annual competition that recognizes passionate and innovative entrepreneurs from across the country who aspire to take their businesses further. Catullo entered and won a $5,000 grant, which enabled him to purchase a new type of refrigerated boxes. FedEx maintains a strong relationship with winners and finalists. For instance, one winner’s suggestion led to the formation of the Entrepreneur Advisory Board (EAB), now made up of 10 small- business owners. The EAB identifies potential FedEx service enhancements or new offerings to help small businesses. Members also provide business advice and collaboration to each other. 14 15
FEDEX LOGISTICS BY THE NUMBERS FEDEX LOGISTICS > 20K TEAM MEMBERS CONNECTS and 510 SUPPLY CHAINS FACILITIES located in GLOBALLY 29 COUNTRIES When customers need to simplify logistics to handling power growth while retaining control of their operations, they can depend on FedEx. In >7M CUSTOMS 2018, several FedEx companies realigned into BROKERAGE a new organization, FedEx Logistics, enabling TRANSACTIONS ANNUALLY businesses of all sizes to conveniently access a comprehensive suite of services to fit their supply chain objectives. reaching We provide supply chain solutions, specialty 95% OF THE transportation, cross border e-commerce WORLD’S GDP technology services, customs brokerage, and trade management tools and data from a single trusted source. Customers can choose the combination of capabilities best suited to meet their business goals. 16 17
A FULL SUITE OF LOGISTICS SOLUTIONS FOR THE GLOBAL MARKETPLACE FEDEX LOGISTICS connects customers to a powerful array of services: Air and Ocean Trade Brokerage and Supply Chain Cargo Networks Facilitation Services A competitive international A trusted advisor and customs Third-party logistics (3PL) freight forwarding network broker to help customers solutions, including warehouse enabling customers to navigate the complex maze management and reverse streamline supply chains. of international trade rules logistics with industry expertise Our solutions provide optimum and procedures, increase in technology, healthcare, reach, flexibility, cost savings efficiency, and move goods e-commerce, retail, industrial and reliability. through customs. and transportation. Custom Critical Cross Border E-Commerce Forward Depots and Services and Fulfillment 3D Printing Expedited shipment delivery, Global shopping cart Critical inventory and service temperature-control and technologies, including localized parts logistics, electronics special handling capabilities, currency and payment options; repair and refurbishment transportation management, scalable fulfillment services; services, and additive and brokered freight solutions e-commerce transportation manufacturing/3D printing. to keep customers’ operations options; and trade compliance running smoothly. tools and data. 18 19
FEDEX OFFICE FEDEX OFFICE BY THE NUMBERS MAKES PRINTING >14K TEAM MEMBERS AND SHIPPING operating in ≈1,900 CONVENIENT U.S. LOCATIONS and offering From consumers to entrepreneurs to corporations, our FEDEX SAMEDAY® customers receive expert service, whether visiting a CITY TO FedEx Office location or using online services from home, in the office or on the road. Our digital, printing, retail and >1,900 shipping network empowers customers to be and do more. CITIES within We provide access to a wide variety of world-class printing services, including professional copying and finishing, document > 30 MAJOR METRO AREAS creation, signs, banners and graphics, as well as a full range of commercial print solutions. Our digital printing technology, including FedEx Office® Print Online services, FedEx Office Mobile App and FedEx Office® Print & Go offerings, enables customers to print on demand, anytime, anywhere. With more than 1,900 locations in retail areas, on college and corporate campuses, and within hotels and convention centers, our stores provide FedEx Express® and FedEx Ground® shipping, Hold at FedEx Location options, FedEx Ship&Get® lockers, FedEx® Pack Plus and packing services backed by the FedEx Office® Packing Pledge. FedEx Office also offers FedEx SameDay® City courier service in more than 30 major metro areas in the U.S. 20 21
EXPANDING CONVENIENT OPTIONS Locations in the convenience network offer a range of options from full-service printing OUR RETAIL and shipping to pack, ship and hold services to quick drop-off points. In fact, 80 percent of the U.S. population is within 5 miles of a FedEx hold location, where they can have their packages held for pickup if they prefer not to have them left on their doorstep. FOOTPRINT Our more than 50,000 locations for U.S. consumers nationwide include: FedEx Office stores, FedEx Ship Center® FedEx drop-off and pickup available locations and FedEx Authorized in over 9,800 locations of well-known E-commerce isn’t a trend. It’s a fundamental part of ShipCenter® locations retailers, including Kroger, Albertsons retailing today and has profoundly changed how and Walgreens consumers make purchases. As online shopping FedEx Office locations within stores — becomes an intrinsic part of everyday life for hundreds we plan to place 500 additional FedEx® Drop Boxes — more than of millions of people, the last mile of delivery — where locations within leased space in 35,000 throughout the U.S. and how they receive packages — is an increasingly select U.S. Walmart stores by 2020 important consideration. And as the online retail demand continues to increase, so does the demand for packing, delivery and returns services. That’s why FedEx continues to expand our convenience network to help customers and businesses address e-commerce needs, providing more access to FedEx® services. For instance, since the majority of online orders are placed after 4 p.m., we recently launched FedEx Extra Hours. With this service feature, consumers can place orders as late as midnight with eligible retailers who, in turn, can fulfill those orders through FedEx Express with next-day local delivery and two-day shipping in the continental U.S. 22 23
CONTINUALLY INNOVATING INNOVATION HAS BEEN PART OF OUR DNA since our first night of operations, when a new industry — overnight shipping — was born. And technology has always been vital to FedEx, because the information about a package is as important as the package itself. That spirit of innovation has never wavered. We continually implement innovative solutions and explore emerging technologies that have the potential to transform the shipping and logistics industry. RECENT INNOVATIONS A driverless Robotics: Driverless Blockchain: This Autonomous driving: “FedEx stands at the tuggers haul oversize technology holds “Platooning” is when tugger moves nexus of the virtual packages through our significant potential for trucks follow one another through the FedEx Ground hub in advancing supply chain closely to improve fuel and physical world FedEx Ground Greensboro, North logistics. FedEx is a efficiency and help and is building on Carolina. The tuggers charter member in alleviate traffic congestion. distribution hub the benefits that know the shape of the the Blockchain in FedEx is working with in Greensboro, building and are packed Transportation Alliance Volvo Trucks to develop innovation and North Carolina. with sensors. Using and the Blockchain communication technology technology bring.” automation for repetitive, Research Institute, and that helps reduce braking simple tasks allows team we have a pilot program reaction time and enables — Frederick W. Smith, members to focus on underway at FedEx vehicles to automatically FedEx Chairman and CEO high-value, skilled work. Freight to share shipment match each other’s speed information among and braking. suppliers, FedEx and retailers. 24 25
CONNECTING THE WORLD WE MEASURE OUR SUCCESS THROUGH CREATING AMBITIOUS GOALS AND TRACKING OUR PROGRESS: RESPONSIBLY AND RESOURCEFULLY GOAL GOAL GOAL AS ONE OF THE WORLD’S MOST ADMIRED BRANDS, we have a responsibility to be a role model 30% 50% 30% reduction in aircraft increase in FedEx of jet fuel obtained from in the communities where we live and work. That means reaching beyond the services we emissions intensity from Express vehicle fuel alternative fuels by 2030 a 2005 baseline by 2020 efficiency from a 2005 provide to be a caring corporate citizen and a thoughtful steward of the environment. baseline by 2025 PROGRESS PROGRESS First delivery of alternative 22.2% PROGRESS fuel anticipated in 2020 COMMITED TO SUSTAINABILITY THE FUTURE OF SUSTAINABILITY since 2005 37.9% To learn more about since 2005 these initiatives, go to We continually seek new ways to minimize environmental Our fleet modernization and FedEx® Fuel Sense initiatives csr.fedex.com. impacts with programs that deliver cost savings and have reduced emissions, but we want to do even more, more-efficient use of resources in four key areas: which is why we set a goal to increase FedEx Express vehicle fuel efficiency 50 percent by 2025. • Aircraft efficiency • Vehicle efficiency In FY19, we expect to acquire 1,000 Chanje V8100 electric vehicles (EVs) for use in California. The EVs could help • Sustainable facilities save 2,000 gallons of fuel and avoid 20 metric tons • Sustainable materials and recycling of CO2e emissions per vehicle each year. We also invest in developing new solutions, such as From electric vehicles to alternative jet fuels to alternative fuels and advanced technologies, and advocate compressed natural gas (CNG) for trucks, FedEx for changes that could improve our entire industry’s continues to pursue multiple paths in our ongoing efficiency and environmental performance. efforts to increase sustainability. 26 27
SERVING COMMUNITIES GOAL $200M WORLDWIDE investment in 200 communities around the world by 2020 (FedEx Cares goal AT FEDEX, WE PRIORITIZE AREAS WHERE WE CAN USE OUR GREATEST ASSETS — our powerful was set in 2016) global transportation networks, our knowledge and expertise, and the passion of our team PROGRESS SINCE 2016 members — to make the biggest possible impact in improving the quality of life around the >$150M world and making it a better place for future generations. >250 THROUGH OUR FEDEX CARES COMMUNITY INVESTMENT communities PROGRAM, WE FOCUS ON FIVE KEY AREAS: Global Sustainable Employment Road Safety Delivering for Good Entrepreneurship Transportation Pathways We use our expertise We’re prepared to We help women and We contribute financial, We’re passionate and resources to quickly mobilize our minority entrepreneurs technical and logistical about enabling support road safety powerful global by providing them with assistance to help city underserved groups initiatives. For example, network when we’re the tools and resources planners, engineers to access opportunity. we help Safe Kids needed, whether it’s they need to turn their and others around the FedEx supports Worldwide bring shipping humanitarian ideas into reality. world improve mobility organizations that pedestrian safety aid in the wake of within cities while connect veterans and programs to over natural disasters, reducing congestion minority youths to 250 cities in 10 transporting rare and pollution. education and careers. countries worldwide. artifacts or moving endangered animals to safety. 28 29
PROVEN DEDICATION AWARDS AND RECOGNITION TO OUR CUSTOMERS, FORTUNE World’s Most Admired OUR COMMUNITIES Companies #9 AND OUR PEOPLE FORBES Top Regarded Companies CSR GLOBAL REPTRAK World’s Most Reputable WE WOULDN’T BE ONE OF THE MOST ADMIRED COMPANIES and Companies for CSR trusted brands year after year without the can-do commitment of FORTUNE Best Companies to Work For our more than 450,000 team members around the world. They BLACK ENTERPRISE help our customers succeed, build more vibrant communities and Top Companies for Diversity create a more sustainable future for our planet. 30 31 31
“I WILL MAKE EVERY FEDEX EXPERIENCE OUTSTANDING.” THIS SIMPLE BUT POWERFUL STATEMENT guides everything we do at FedEx. It’s the Purple Promise: a shared commitment that helps earn the trust and loyalty of customers and make FedEx a great place to work. Empowering team Personal Well-Being Diversity and Safety members to deliver Development Inclusion The success of our In FedEx culture, on the Purple Promise Just as we connect business depends on We value diverse “safety above all” is requires ongoing people and possibilities our team members’ backgrounds and a core value — not investment in our around the world, we overall well-being. We perspectives, so just a priority — and workforce. We are seek to connect our provide competitive we’ve established we live our commitment committed to the team members to benefits as well as best-in-class programs on a daily basis by highest ethical and opportunities, resources to support to recruit, develop, incorporating safety professional standards, recognizing and health, financial security retain and nurture a principles into all and to improving the developing their full and work-life balance. diverse workforce. aspects of our lives of our team potential. business. members in many ways: 32 33
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