FedEx is the pioneer of overnight air transportation, allowing express delivery to truly reflect the value of time and space. FedEx has been based on air express since its establishment, which is its most accurate positioning for the express industry. The hub-and-spoke air distribution network (Hub-and-spoke) pioneered by FedEx has always been regarded as a standard in the industry, and it is still the world’s largest express air transport network. The company’s services cover more than 200 countries and regions around the world and have more than 200,000 employees.
Today’s FedEx is no longer a simple express delivery company, but a large-scale comprehensive logistics group with a strong backbone and lush branches. FedEx Group is actually composed of several business sectors such as service, express delivery, ground, and freight. The four major sectors complement each other. Related businesses are carried out by different companies. FedEx has embarked on a legendary mission since it began operating in 1973. FedEx relied on huge amounts of venture capital to incubate and go public. If it had failed, perhaps people would not have seen the unprecedented prosperity of today’s venture capital market.
The first drop box was installed in 1975, and overnight mail service was provided in 1982. The Memphis Airport Super Logistics Center is obviously more famous than the Grizzlies. FedEx’s global expansion strategy is to continue mergers and acquisitions, expand the domestic and foreign express delivery industry, and extend other logistics and transportation businesses. The origin of air express delivery is by no means a deserved one. As of 2016, FedEx has 670 aircraft, with a self-owned ratio of 90%, ensuring that it handles 4.5 million air items per day. Memphis Airport has always been the busiest cargo airport in the world.
FedEx’s networking model is similar around the world. Routes are concentrated in regional hubs as much as possible, forming a radiation network around the hubs, and establishing secondary processing centers according to freight needs. For example, in Asia, Guangzhou is the Asia-Pacific transshipment center of FedEx. Goods originating and destination in Asia will go to Guangzhou for transshipment. FedEx focuses on and focuses on developing the e-commerce logistics market, providing comprehensive and professional transportation solutions for high-precision industries such as healthcare and life sciences, as well as art and luxury goods industries.
Even though FedEx is world-renowned, its domestic business still accounts for more than 70%. FedEx renamed BongIntl, which it acquired in 2014, as FedEx CrossBorder. As a subsidiary of FedEx Trade Network, it mainly provides e-commerce technology solutions to online retail companies and helps them solve various cross-border e-commerce problems, including regulatory compliance and security. Payment processing, multi-currency pricing, credit card fraud protection, and global consumer connectivity.
Bongo automatically adjusts currency as well as customs and shipping costs based on location, helping shoppers buy from overseas retailers and providing cross-border services to freight forwarding customers, making it easier for B2B customers to calculate costs for larger shipments. International shipping costs. FedEx acquired North American third-party logistics company Genco in 2015 to expand the retail and e-commerce market. In the United States, reverse logistics costs account for 8% to 10% of total sales of consumer goods. The acquisition of Genco’s strong retail returns and exchange processing capabilities is That’s what FedEx values.
The acquisition of TNT in 2016 included its express delivery segment. Judging from the recent financial reports, it is still worth the money and makes a fortune. China is the region with the fastest development and greatest potential for FedEx’s international business. The number of employees in China is close to 10,000, with nearly 3,000 operating vehicles and more than 1,000 ground operation stations.
TNT, Europe’s second largest express delivery giant, known as “Orange Dynamite”, tried to “commit” to UPS three years ago and was blocked by the antitrust review, and then sold it to FedEx at a discount. TNT was born in the Southern Hemisphere and was founded in Australia in 1946. It started from a freight truck and has always had advantages in Australia. By 1996, it was acquired by Dutch Post KPN, and TNT became a comprehensive logistics group including postal, express, warehousing and other businesses. The predecessor of the now famous CEVA is TNT Logistics.
In 2005, TNT acquired Huayu, a Chinese express company, but the integration failed and the company changed hands. TNT has expanded its business territory through continuous mergers and acquisitions, and has gradually shifted its business focus to Europe. The company is currently headquartered in Amsterdam, the Netherlands. In addition to air transportation capabilities, TNT is most noteworthy for its very rich and complete European trunk network. The land transportation system serves a total of 44 countries in Europe. The network includes 20 international transshipment centers, 550 general transshipment centers and warehouses, and road transportation capabilities. It is powerful enough to meet 70% of overnight arrival needs with trucks.
This will play a great role in compensating for FedEx, which is relatively weak in Europe. In terms of overall performance, TNT’s operating conditions are relatively difficult. From fiscal year 2009 to before the acquisition, TNT suffered losses almost every year, which paved the way for its sale. Currently, TNT still has a leading position second only to DHL in the international express delivery market in China and Europe.
In 1988, TNT Global Express Company cooperated with Sinotrans to establish Sinotrans-Tiandi Express Co., Ltd. In 2003, TNT ended its 15-year cooperation with Sinotrans and chose Super Mach as its general agent, which quickly went downhill. The author regrets that TNT was not bought by China, and domestic companies missed an opportunity to internationalize their brands. A careful analysis of TNT’s financial reports shows that its operating capabilities are not bad, but there are too many “frustrations”, various integration failures, and high financial costs.