Download - ITFM Report - FedEx - Section B
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ITFM Project Report
Anil Anand 10066
Ashitha Thaddaeus 10073
Jyothi Kumari 10081
K Swetha Nandana 10082
Kundal Mahanta 10085
Ragunandan V R - 10095
8/16/2010
Project Report submitted to Prof. Mohammed Minhaj for partial fulfillment of requirements of the
course CSYS 1001 Information Technology For Management
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ITF
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Contents
1 0Fe Ex Corporation ................................ ................................ ................................ ....................... 4
2.0Strate
ic Business Units ................................ ................................ ................................ ............... 6
2.1Fe ExExpress ................................ ................................ ................................ .......................... 6
2.1.1Fe ExSupply Chain ................................ ................................ ................................ ........... 6
2.1.2 Fe
Ex Trade Networks................................ ................................ ................................ ....... 8
2.2 FedExGround ................................ ................................ ................................ .......................... 9
2.2.1FedExS
artPost ................................ ................................ ................................ ............... 9
2.3 FedExFreight ................................ ................................ ................................ ......................... 10
2.3.1FedEx Custom Critical ................................ ................................ ................................ ...... 10
2.4 FedExServices................................ ................................ ................................ ........................ 12
2.4.1FedEx Office ................................ ................................ ................................ .................... 12
2.4.2 FedEx Customer Information Services................................ ................................ .............. 13
3.0 IT TheFedEx Perspective................................ ................................ ................................ ......... 14
3.1 Introduction ................................ ................................ ................................ ........................... 14
3.2 History of Innovation................................ ................................ ................................ .............. 14
3.2.1 InnovativeSpaces................................ ................................ ................................ ............ 14
3.2.2 Virtual MachineDevice Queues................................ ................................ ....................... 18
3.2.3 ASTRA Bar Codes ................................ ................................ ................................ .......... 18
4.0FedEx Logos and Trademarks................................ ................................ ................................ ..... 19
5.0 Bibliography and Citations ................................ ................................ ................................ ......... 20
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List of Figures and Tables
Figure1: Revenuecontribution ofsubsidiaries................................ ................................ ................... 5
Figure 2: Logos................................ ................................ ................................ ................................ . 19
Table1: IT Innovation ................................ ................................ ................................ ...................... 15
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1.0 FedEx CorporationHisto
The modern air/ground express industry was pioneered with the founding of Federal
Express in 1971; thecorporation wascreated in 1998 as FDX Corporation and becameFedEx
Corporation in January 2000.
HeadquartersFedEx World Headquarters. 3630 Hacks CrossDrive Winchester Road Memphis, TN, 38125
Principal Officers
y Frederick W. Smith-Chairman, President and CEOy Robert B. Carter -Executive Vice President,FedEx Information Services and CIOy T. Michael Glenn - Executive Vice President, Market Development and Corporate
Communications
y Alan B. Graf Jr.,-Executive Vice President and CFOy Christine P. Richards -Executive Vice President,General Counsel and SecretaryNY
E Listin
FDX (sinceDecember 1978)
FY10 Revenue (Consolidated Information for all FedEx Companies )$34.7 billion
WorkforceMore than 280,000 team members worldwide
Average Dail
Volu e More than 8 million shipments for express, ground, freight and expedited deliveryservices
Service AreaMore than 220countries and territories, including every address in the United States
Fedex.co
Over 20 million unique visitors monthly; more than 5.5 million package tracking requests
daily and 19 million packagesshipped via FedExShip Manager monthly
Operating Facilities
y Express:1,057 stations;10 air express hubs y Ground: 32 ground hubs; over 500 pickup/delivery terminals y Freight: Approximately 470servicecentresy Office: Nearly 2,000 locations
Air Operations664 aircraft; more than 375 airportsserved worldwide
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Ground"leet
More than 80#000 motorized vehicles for e
$press
#ground
#freight and e
$pedited delivery
service
Drop-offLo%
ations
y 705 Fed & ' World Service Centresy 1 ( 804 Fed ) 0 Office locationsy 6,917 Fed
1 2Authorized ShipCenters and Alliance Partners
y 43,748 Fed 3 4 5 rop Bo 4 es (including 4,963 U.S. Postal Service locations)
Market Share
Fed 6 7 is the clear market leader in e 7 press shipping, with 49% market share by volume in
the U.S. In ground shipping, it is only starting to establish itself in a market dominated by
competitor UPS. In its freight businesses too, Fed 6 7 is gaining market share but its long-term
success is uncertain. Fed6 7
is placing a big bet on the e7
panded international network it isnow developing.
Revenue8
ontribution ofsubsidiaries
igure 1: Revenue ontribution ofsubsidiaries
63%
20%
12%
5%
Fed9 @
9 @
press Fed9 @
A
round Fed9 @
Freight Fed9 @
Services
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2.0 Strategic Business Units
2.1 FedEx Express
2.1.1 F dEx Supply ChainSince its inception, FedEx has been raising the bar on what's possible. Today, the FedEx
global transportation and information network enables customizable solutions for
customers around the world. FedEx SupplyChain serves as an "orchestrator", bringing the
right elements together to turn supplychain managemen t into a competitivestrategy.
FedEx SupplyChain offers specialty services like FedEx Critical Inventory Logistics, FedEx
Fulfilment Services, FedEx Transportation Management, cold chain solutions, crossdocking
and dock services.
History:
Founded in 1989 as Roadway LogisticsSystem
Headquarters:
Memphis, Tenn.
Principal Officer:
Craig M. Simon, President and CEO
Service Area:
North America
Workforce:
More than 800employees and contractors
GroundFleet:
Approximately 400 motorized vehicles
Warehousing:
Approximately 40 warehouses with over 4 million square feet
Bore AboutFedEx SupplyChain:
FedExSupplyChain helpscustomers turn supplychain management into a competitive
strategy byenabling them to focus on corecompetencies, reducecosts and improve
customer service. Thecompanys portfolio ofspecialtyservices includes:
FedEx Critical Inventory Logistics Comprehensive, end-to-end solution designed to
optimize the management of critical inventory and service parts distribution and returns
process. It incorporates hub-based central stocking locations (CSLs) and a global network of
forwarding stocking locations (FSLs) integrated through extensive information capabilities.
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FulfilC
ent Services:
Services designed to leverage the advantages of multi-client,shared facilities, including 24/7
Global Distribution Centres with late-night access to FedExExpress World Hubs.
FedEx Transportation Management:
Optimized management of multi-carrier shipments for all modes of transportation.
FedEx Healthcare SharedNetD
ork:
Premium, time-definite, temperature-controlled deliveryservice to the pharmaceutical and
diagnostic product industries.
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2.1.2 F dEx Trad Netw rks
FedEx Trade Networks helps simplify international shipping for customers of all sizes by
providing flexible end -to-end services that include customs brokerage, global cargo
distribution and trade facilitation solutions. Customers can utilize FedEx Trade Networks
services as an entire package, or take advantage of individual services as needed.
History:
Founded in February 2000
Headquarters:
Memphis, Tenn.
Principal Officer:
Manfred Schardt, President and CEO
Service Area:
Worldwide, from more than 330 locations
Workforce:More than 3,300employees
More aboutFedEx Trade NetE
orks:
FedEx Trade NetF
orks Transport & Brokerage:
FedEx Trade Networks Transport & Brokerage is a leading provider of full -servicecustoms
brokerage, global ocean and air cargo distribution, North American transportation, and
other value-added services involved in shipping goods.
FedEx Trade NetG
orks Trade Services:
FedEx Trade Networks TradeServices provides Trade & Customs AdvisoryServices (TCAS)
and global duty and tax information from WorldTariffSM.
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2.2 FedEx Ground
2.2.1 FedEx SmartP st
In 2005, FedEx acquired FedEx SmartPost, a leading national small-parcel consolidator.
FedExSmartPost specializes in the delivery of low-weight, less time-sensitive business to-
consumer packages, using the U.S. Postal Service for final delivery to residences. FedExSmartPostscustomers includee-tailers and cataloguecompanies. Through its network of 25
distribution hubs FedEx SmartPost provides delivery Monday through Saturday to all
residential addresses in the U.S., including P.O. Boxes and APO/FPO m ilitary destinations.
History:
Founded in 1998 as Parcel Direct, was rebranded FedExSmartPost in 2004.
Headquarters:
New Berlin, Wis.
Principal Officer:
Ward B. Strang, President and CEO
Workforce:
More than 4,500employees
Average Daily Volume:
More than 1.1 million packages
Service Area:
Service throughout the United States and Puerto Rico, plus APO/FPO addresses
Operating Facilities:
25 Distribution Centres
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2.3 FedEx Freight
2.3.1 FedEx Cust m Critical
FedEx Custom Critical provides the fastest, door-to-door same-day and next-day delivery of
urgent freight, valuable items and hazardous goods. FedEx Custom Critical provides 24/7
service, utilizing itsservice fleet for ground -expedited service and providing an array of airoptions.
History:
Founded in 1947 as Roberts Cartage; became an expedited carrier, RobertsExpress, in 1980;
was rebranded FedEx Custom Critical in 2000.
Headquarters:
1475 Boettler Rd.
Uniontown, Ohio 44685
United States
Principal Officer:Virginia C. Albanese, President and CEO
Average Daily Volume:
Approximately 700shipments
Service Area:
Service throughout the United States and internationally
Service Hours:
24/7 availability (nights, weekends and holidays at no extra charge)
Workforce:
More than 1,300 team members
GroundFleet:
Exclusive use of more than 1,300 vehicles in fivesizes
Air Fleet:
Access to virtuallyevery on-demand aircraft in North America
More aboutFedEx Custom Critical:
FedEx Custom Critical:NorthAmerica
FedEx Custom Critical providesexclusive-use, door-to-door transportation service
throughout the U.S., Canada and Mexico 24 hours a day, 365 days a year for same-day
shipping or overnight delivery ofcritical freight. Whe n customers need it now,FedEx
Custom Critical delivers whether it's parts to keep a vital production line running,
emergency generators to restore power after a storm, or a priceless piece of art that needs
special handling.
FedEx Custom Critical: International
FedEx Custom Critical Air Expedite offers an array ofsolutions for international shipments,
including exclusive-usecharters and time-specific airfreight services. With Temp-Assure Air
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and Temp-Assure Validated Air services,sensitiveshipments are transported in
temperature-controlled cargo containers.
FedEx Custom CriticalPassportAuto Transport :
A subsidiary ofFedEx Custom Critical, Passport Auto Transport provides door-to-door
vehicle transportthroughout the United States. Thecompanys custom-designed, fullyenclosed air-ride trailers provide maximum protection primarily for vehicles of high value
from vintage fireengines to custom coachwork classics,exotics, racecars and hot rods.
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2.4 FedEx Services
2.4.1 FedEx Office
FedEx Office (formerly FedEx Kinko's) provides access points to printing and shipping
expertise with reliableservice when and whereyou need it. TheDallas -based company has
a network of more than 1,900 digitally-connected locations. FedEx Office services includecopying and digital printing, professional finishing, document creation, direct mail,signs and
graphics, Internet access, computer rental,FedExExpress and FedEx Ground shipping, and
more. In addition, the company offers FedEx OfficeSM
Print Online, an online printing
solution for business and personal printing, at home, at the office or on the go. Products,
services and hours vary by location.
History:
Founded in 1970 in Santa Barbara, Calif.
Headquarters:
13155 Noel Road,Suite1600Dallas, TX 75240 Principal Officer:
Brian Philips, President and CEO
Workforce
Approximately19,000employees worldwide
Service Area:
Centres in eight countries
Operating Facilities:
Nearly 2,000
More aboutFedEx Office:
FedEx Office: United States
FedEx Officecentres in the United States provide a one-stop shop for small businesses, with
servicessuch as direct mail,signs and graphics production, and office products. These retail
outlets also provide an "office on the road" for travelling business professionals and remote
workers, who often need high -speed Internet access, videoconferencing, presentation
support and other businessservices. More than 200 locatio ns operate 24 hours a day .
FedEx Office: International
FedEx Officecentres located outside the United States offer a full range of businesssupport
services. Thecompany has locations in Canada, China, Japan,South Korea, Kuwait, Lebanon,and the United Arab Emirates. In addition to document and shipping services,FedEx Office
providescorporatesolutions for large, multi-national companies.
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2.4.2 FedEx Cust merInformation Services
FedEx Customer Information Services is a subsidiary of FedEx Corporate Services, Inc. Its
mission is to align customer contact centres, worldwide revenue operations, claims, trace
and packageengineering within FedExs professional servicescompany.
History:
Founded in 2006
Headquarters:
942 South ShadyGrove Road
Memphis, TN 38120
United States
Principal Officer:
Cary C. Pappas, President
Workforce:
More than 4,500 employees
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3.0 IT The FedEx Perspective
3.1 IntroductionFedEx was built upon innovation and it continues to be an integral part of theFedExculture
and business strategy. Our commitment to innovation propels the development of ideas,products and services that empower our customers to grow their businesses around the
world.
FedEx created a new and distinct market over thirty years ago when it began providing
customers access to next dayjust-in-time deliveryservice. Since its inception,Frederick W.
Smiths vision for thecompany has always had a focus on innovation.
In 1978,Fred Smith was famously quoted assaying, The information about the package is
just as important as the package itself. Today,FedEx providescustomers access to almost
real-time information which has enabled new supply chain models and efficiencies. This
unprecedented access to information is connecting customers around the world toeconomic markets and communities.
Innovation is a part of the DNA at FedEx. Whether it is through web services, alternative
energy practices or the development of high-technology, FedEx sees innovation as a
strategic business practice that iscontinuouslyenhanced, developed and encouraged.
3.2 History of Innovation
FedEx has a rich history of innovation that is built on a series of firsts including:
y Installing computers in delivery vehicles, providing sophisticated automation forcorporate mailing services and developing tracking capabilities and software.
y In 1994, we were the first to offer package-status tracking for improved customerservice via fedex.com.
y Offering shipping for improved customer service and convenience via fedex.comy Pioneering the use of wireless technology for shipping over 25 years ago with the
introduction of theDigital Assisted Dispatch System (DADS).
3.2.1 Innovative Spaces
3.2.1.1FedEx Innovation Labs
Continuing theFedExcommitment to the pursuit and development of new technologies to
provide innovative solutions and services for customers, FedEx developed the FedEx
Innovation Labs, an information technology project designed to create an atmosphere of
collaborative thinking around critical technologies such as advanced optics for scanning,
robotics, pervasivecomputing,social networking and more.
TheFedEx Innovation Labs house a research and development team tasked with looking at
future technologies that have a three-to-fiveyear production roadmap.
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FedEx Innovation Labs are a supplement to the ongoing R&D efforts at FedEx. Located in
downtown Memphis along the Mississippi Riveraway from thecorporate headquarters
the Labs share office space in a renovated 1900s furniture warehouse with a local
technologyentrepreneurial incubator,EmergeMemphis.
Table 1: IT Innovation
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3.2.1.2 COSMOS
The hub-and-spoke system requires a sophisticated transportation logistics information
system. One ofFred Smith's key tenets is that information about a shipment is as valuable
as the contents of the shipment. In 1979, FedEx introduced COSMOS - the Customer,
Operations. Service Master On-line System - the first centralized computer system in the
industry used to keep track of all packages handled by thecompany. Thissystem not onlygave FedEx employees the ability to obtain real-time information on the exact status and
location of a shipment, but also made the information available to customers who phoned
theFedEx toll-free number.
In a central database located at the Memphis headquarters, COSMOS"' maintains data 011
package movement, pickup, invoicing, and delivery. A barcode is attached to each parcel at
the point of pickup, and scanned up to 20 times (for international shipments) en route, at
each stage of the collection and delivery cycle. The COSMOS"' system handled 63 million
transactions per day in 1999.
3.2.1.3 DADS
The Digital Assisted Dispatch System was put into place in 1980. Under thissystem,small
terminals were installed in vehicles for the purpose of transmitting digital information on
orders, thus guiding couriers to their next pickup.
3.2.1. 4 FedEx PoH
erShip
FedEx determined that providing COSMOS- generated information to customers- to allow
them to "order" shipping by instantly transmitting the information to relevant couriers,
accounting personnel, and hub personnel - would greatlyenhanceefficiency and customer
service. In 1984, the company pioneered its PC -based automated shipping system, later
named FedEx PowerShip, giving a stand-alone PC terminal free of charge to its high-
volumecustomers. Powership used telephone lines to link customers with the COSMOS
system, permitting customers to place their own shipping orders electronically and print
airbills. The system provided users with real-time tracking and a long list of reporting
functions. Userscould complete an entirely automated business transaction with electronic
data. FedEx PowerShip. Today a component of FedEx Ship Manager, was one of the
earliest "e-commerce" tools, well before the term e-commerce waseven contemplated.
3.2.1.5 fedex.com
Also in 1994, FedEx launched its website. It contained the usual information about the
company and its services; however, the site captured the instant attention of the
technology industry because it offered something that few sites had in thoseearlyyears of
the Internet - real functionality. The site provided real-time, on-line tracking information
provided by the COSMOS system. Shortly thereafter, FedEx InterNetShip was
implemented, allowing users to complete and print shipping labels over the Internet. Thesystem has been expanded to include other services, such as allowing customers to
maintain an address book of frequently used "ship to" addresses, retaining shipp er
information such as account numbers, and giving users access to reports concerning their
shipping histories.
According to Business Weekmagazine, the website was pivotal: "In the brief annals of doing
business on the Internet, Federal Express Corp.'s customer Website has become a
legendarysuccessstory."
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3.2.1.6FedEx SuperTracker
In 1986. FedEx introduced SuperTracker, a hand -held bar-code scanner system that
captures detailed package information. Couriers and package sorters had their own bar-
code scanners - the world's first use of bar-code technology to track package status in
transit electronically - turning FedEx workers into distribution processors and information
gatherers. This innovative system has since become synonymous with logistics andinventorycontrol throughout the world.
3.2.1.7FedEx Ship
In 1994, FedEx introduced FedEx Ship, a new software that brought the power of FedEx
PowerShip to "front office" personnel using desktop computers. This package allowed
users to dial directly into COSMOS to ship, print airbills, track, and report efficiently. This
reduced overhead costs and improved market service. More importantly, it prepared FedEx
for the Internet and World Wide Web boom of theearly1990s.
3.2.1.8FedEx Insight
It's a Web-based application that enablesyou to view thestatus ofyour inbound, outbound
and third-party shipments without a tracking number. All you need is your FedEx account
number and/or company name and address. You can see information about the status of
your shipmentsso you can moreeffectively.
3.2.1.9FedEx Global Trade Manager
International shippers know how timeconsuming and sometimescomplex the preparation
ofcustoms documentation can be. FedExGlobal Trade Manager, an Internet-based tool,can
help prevent costly mistakes by simplifying this process. FedEx Global Trade Manager is a
comprehensive and interactive resource that identifies the documents needed to ship to
and from specific countries. The simple, wizard-based tool automates the documentation
and regulatory compliance required to ship approximately 90% of all commodities
internationally via air express transportation. FedEx Global Trade Manager providescustomers of any size with a one-stop resource for international shipping documentation
and trade information. FedEx Global Trade Manager has become an invaluable online tool
for international shippers who need a single, up -to-date access point for streamlining their
international shipping processes.
3.2.1.10FedEx Claims Online
You can file a claim by mail or fax, or save time bysubmitting it online. When you file online,
you can request to receive periodice-mail updates on thestatus ofyour claim. FedEx uses
information from your shipping record to pre -populate portions of your claim form. (The
online option iscurrently available for FedExExpress and FedExGround USshipments only,
excluding FedExGround C.O.D. claims)
3.2.1.11FedEx E-Commerce Builder
FedEx E-Commerce Builder, a full-service Internet platform designed to make it easy for
small and medium-sized businesses to build and manage an online store. The innovative
tool is available at www.fedex.com and contains theentirecore online business processes,
including order entry, order processing, billing and product shipment using pre-integrated
FedExExpressshipping capabilities.
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3.2.2 Virtual Machine Device Queues
Challenge:
FedEx wanted to reduce network complexity and speed up infrastructure deployment using
10 Gigabit Ethernet (10GbE) instead of 1 Gigabit Ethernet (1GbE) to support demanding
data replication and distribution requirements at a new data centre. FedEx deployed aMware ESX hypervisor solution as its virtualization solution of choice, but after initial
testing were looking to improve network performance on their new 10 GBE links. FedEx
undertook a proof-of-concept (PoC) study with Intel to determine how to improve 10GbE
network throughput to near line rate.
Solution:
Virtual MachineDevice Queues (VMDq, a component of Intel Virtualization Technology
for Connectivity), together with VMware NetQueue, helped FedEx better utilize10GbE
bandwidth, allowing it to meet its requirements while managing costs in its new data
centre.
Using 10GbE to consolidate multipleEthernet connections reduces the number of adapters and cables in thesolution while improving power management and overall complexity.
Infrastructure Components:
IntelXeon processor 5500series
Intel10Gigabit AFDA Dual Port Server Adapter with VMDq
VMwareESX 4.0, part of the VMware vSphere product family
Red Hat Enterprise Linux 5.3 64-bit
3.2.3 ASTRA Bar Codes
ASTRA can be used on its own or integrated with other sections to produce individual high
quality Barcode Labels on various types of printers. The Barcode Labelscan besaved to disk
or copied to theclipboard and scrapbook as PICT files for use in other applicationssuch as
drawing packages, word processing and DTP.
Barcode Labels can also contain text and pictures pasted from other applications, eg the
company logo, a picture of the product,etc.
When integrated with the Stock, Purchases, Purchase Order Processing, Sales and Product
Tracking sections, batches of labels may be produced automatically.
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4.0 FedEx Logos and Trademarks
Figure 2: Logos
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5.0 Bibliography and Citations
http://en.wikipedia.org/wiki/Fedex http://about.fedex.designcdt.com/our_company/company_information/fedex_freig
ht http://about.fedex.designcdt.com/our_company/company_information/fedex_servi
ces
http://about.fedex.designcdt.com/our_company/company_information/fedex_ground
http://about.fedex.designcdt.com/our_company/company_information/fedex_express/fedex_supplychain
http://about.fedex.designcdt.com/our_company/company_information/fedex_express/fedex_tradenetworks
http://about.fedex.designcdt.com/our_company/company_information/fedex_express
http://about.fedex.designcdt.com/our_company/company_information/fedex_services/customer_info_services
http://about.fedex.designcdt.com/our_company/company_information/fedex_freight/fedex_customcritical
http://about.fedex.designcdt.com/our_company/company_information/fedex_corporation
http://www.fedex.com/us/about/today/companies/corporation/facts.html http://about.fedex.designcdt.com/our_company/fedex_innovation