WE POWER GLOBAL CONNECTIONS - About FedEx
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A CONNECTED WORLD IS A BETTER WORLD EVERY DAY, FEDEX CONNECTS THE WORLD, turning promise into reality. Handing off a lifesaving medication the same day it was ordered. Providing supply chain solutions for complex fulfillment needs. Bringing desperately needed relief 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 > 425K 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. >14M SHIPMENTS EACH BUSINESS DAY (AVG. DAILY VOL.) to > 220 COUNTRIES AND Technology and services The largest express Cost-effective Priority and economy TERRITORIES for global supply chain, transportation company business and residential less-than-truckload (LTL) e-commerce and other in the world. package shipping. freight shipping. business needs. Global specialty logistics Print and copy services, and e-commerce shipping pickup and solutions tailored to delivery, and same-day customers’ needs. courier service. 2 3
Anchorage Liège Paris Toronto Oakland Indianapolis Newark Memphis Miami Shanghai Fort Worth Guangzhou FEDEX EXPRESS GLOBAL NETWORK Our 12 hubs connect 220+ countries and territories, Air Routes and more than 99 percent of the world’s GDP. 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 services ranging from same-day to three-business-day delivery. > 235K TEAM MEMBERS THE WORLD WORLDWIDE Whether customers need a part delivered overseas first thing the next morning or a package delivered across town moving ≈6M on Saturday, we’ve got it covered. Our powerhouse global network provides reliable, time-sensitive and competitively PACKAGES AND superior integrated express transportation services to the U.S.; Canada; Asia Pacific; Europe; Middle East, ≈29M Indian Subcontinent and Africa; and Latin America and LBS. OF FREIGHT Caribbean. In addition to a full portfolio of intercontinental (AVG. DAILY VOL.) air express services, FedEx Express® domestic shipping services have now expanded to over 35 countries. through 12 MAJOR HUBS > 650 AIRPORTS using 675 AIRCRAFT* > 85K MOTORIZED VEHICLES to > 220 COUNTRIES AND TERRITORIES *Grossavailable aircraft; includes parked. 6 7
TNT EXPANDS GLOBAL ACCESS FOR OUR CUSTOMERS TNT offers express and economy delivery services for documents, parcels and palletized freight via road and air networks in the U.S.; Canada; Asia Pacific; Europe; Middle East, Indian Subcontinent and Africa; and Latin America and Caribbean. The acquisition of this company adds a second-to-none European road network to the robust express network FedEx operates in Europe. TNT also has a significant presence in China and Southeast Asia, a strong presence in the Asia-Europe lane, and substantial business operations in Brazil and Chile. 8 9
FEDEX GROUND FEDEX GROUND BY THE NUMBERS OFFERS FAST, >105K TEAM MEMBERS ECONOMICAL DELIVERY moving > 8M PACKAGES E-commerce continues to change the dynamics of the shipping industry and drive huge (AVG. DAILY VOL.) growth. As a result, providing fast, cost-effective and dependable ground delivery is more vital than ever before. through FedEx Ground offers business-to-business delivery in the U.S. and Canada. We also serve residences via FedEx Home Delivery® and FedEx SmartPost®, with Saturday a > 600 FACILITIES standard delivery day — an important feature for e-commerce shoppers. using > 60K 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. They 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 ongoing relationship with the contest’s winners, giving them publicity, contacts and other resources. Catullo was able to not only grow his meat business but start other ventures, such as a company that handles order fulfillment and shipping for other food businesses. “I gained so much confidence from working with a company that took an interest in me,” he says. “That’s why I’m in the position I’m in today.” 14 15
FEDEX TRADE FEDEX TRADE NETWORKS BY THE NUMBERS NETWORKS ≈20K CONNECTS TEAM MEMBERS and 510 SUPPLY CHAINS FACILITIES GLOBALLY located in 29 COUNTRIES When customers need global reach, they can depend on FedEx Trade Networks. We provide handling access to 95 percent of the world’s GDP with our customized, end-to-end supply chain capabilities. >7M CUSTOMS BROKERAGE In 2018, several FedEx companies realigned under TRANSACTIONS FedEx Trade Networks, creating a specialty logistics ANNUALLY and e-commerce solutions organization. The realignment enables customers to conveniently reaching access a wide range of logistics and supply chain capabilities, and tailor them to their unique needs. 95% OF THE WORLD’S GDP 16 17
A FULL SUITE OF LOGISTICS SOLUTIONS FOR THE GLOBAL MARKETPLACE FEDEX TRADE NETWORKS connects customers to the powerful array of FedEx® services in a convenient, intuitive manner. We provide integrated air and ocean freight forwarding, and specialty logistics and e-commerce solutions: Cross Border Custom Critical Supply Chain Freight Forwarding Forward Depot Services Services Services and Customs Services Global e-commerce Transportation options Supply chain services Brokerage Service parts technology, logistics for time-sensitive, with diverse third-party Air and ocean freight logistics, parts and trade facilitation hazardous and/or logistics offerings, forwarding services repair and exchange solutions to help high-value freight, including warehousing, that connect major services; 3D-printed merchants grow their including ground and air distribution, transpor- global markets, and parts manufacturing; online retail businesses, temperature-controlled tation management, expert customs and a variety of capture new markets shipping, special e-commerce fulfillment brokerage for seamless package design and and enhance the handling, and and reverse logistics. filing and clearance. testing services. international shopping enhanced security. experience. 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. As one of the world’s fastest >1,900 and largest digital, printing, retail and shipping networks, CITIES we empower customers to be and do more. within We provide access to a wide variety of world-class printing > 32 METRO MARKETS services, including professional copying and finishing, document 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 32 metro areas in the U.S. 20 21
EXPANDING CONVENIENT OPTIONS Locations in the convenience network offer a range of options from full-service OUR RETAIL printing and shipping to pack, ship and hold services to quick drop-off points. Our more than 50,000 locations for U.S. consumers nationwide include: FOOTPRINT FedEx Office stores, FedEx Ship Center® locations and FedEx Authorized ShipCenter® locations FedEx package drop-off and pickup locations in well-known retailers such as Kroger, Albertsons and nearly E-commerce isn’t a trend. It’s a fundamental part of 8,000 Walgreens stores FedEx Office locations within stores — retailing today and has profoundly changed how consumers make purchases. As online shopping we plan to place 500 additional FedEx® Drop Boxes — more than becomes an intrinsic part of everyday life for hundreds locations within leased space in 34,000 throughout the U.S. of millions of people, the last mile of delivery — where select U.S. Walmart stores by 2020 and how they receive packages — is an increasingly important consideration. And as the online retail demand continues to increase, so does the demand for packing, delivery and returns services. With the strongest and broadest transportation network in the industry, FedEx is the backbone of e-commerce and continues to be a leader in the global transportation space. That’s why FedEx continues to expand our convenience network, services and partnerships to help customers and businesses solve complex e-commerce challenges, providing more access to FedEx® services. 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. 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 Drones: FedEx may soon “FedEx stands at the tuggers haul oversize technology holds be using drones to deliver tugger moves nexus of the virtual packages through our significant potential for aircraft parts and inspect through the FedEx Ground hubs; advancing supply chain aircraft and runways at and physical world FedEx Ground we’re also testing logistics. FedEx is a our Memphis World Hub. and is building on robotic equipment to charter member in Memphis was one of distribution hub the benefits that unload trucks. And a the Blockchain in 10 local governments in Greensboro, FedEx TechConnect Transportation Alliance chosen by the U.S. innovation and North Carolina. location uses robots and the Blockchain Department of technology bring.” to transport cell phones Research Institute, and Transportation for a from the sales floor to we have a pilot program drone testing project, — Frederick W. Smith, the repair center and underway at FedEx and FedEx is one of a FedEx Chairman and CEO back again. Freight to share shipment handful of companies information among joining the Memphis suppliers, FedEx and testing program. 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 obtain 30 percent of jet fuel from alternative fuels by 2030. • Aircraft efficiency • Vehicle efficiency In FY15, we entered into an agreement with Colorado- based Red Rock Biofuels, which will ultimately produce • Sustainable facilities at least 48 million gallons of alternative jet fuel over an • Sustainable materials and recycling eight-year period. Construction of the fuel refinery began We also invest in developing new solutions, such as in July 2018, and the first delivery of commercially viable alternative fuels and advanced technologies, and advocate and available alternative fuels is anticipated in 2020. for changes that could improve our entire industry’s From alternative jet fuels to compressed natural gas efficiency and environmental performance. (CNG) for trucks to fully electric vehicles, FedEx continues to pursue multiple paths in our ongoing 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 425,000 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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