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Case Paper Presentation

By : Xavier FernandesPGDBA – DLP Admission No : DPGD/ JL10 / 1001

Case Paper Presentation

By : Xavier FernandesPGDBA – DLP Admission No : DPGD/ JL10 / 1001

FedEx Express Overcoming the FDA Challenge

FedEx Express Overcoming the FDA Challenge

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About FedEx

FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. We offer integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 290,000 employees and contractors to remain absolutely, positively focused on safety, the highest ethical and professional standards and the needs of their customers and communities.

FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. We offer integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 290,000 employees and contractors to remain absolutely, positively focused on safety, the highest ethical and professional standards and the needs of their customers and communities.

FedEx Corporation

Today's FedEx is led by FedEx Corporation, which provides strategic direction and consolidated financial reporting for the operating companies that compete collectively under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Networks, FedEx Supply Chain Solutions and FedEx Services.

FedEx Corporation

Today's FedEx is led by FedEx Corporation, which provides strategic direction and consolidated financial reporting for the operating companies that compete collectively under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Networks, FedEx Supply Chain Solutions and FedEx Services.

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About FedEx

HistoryFounded in 1971 as Federal Express Corporation

HeadquartersWorldwide: Memphis, Tenn.

Asia Pacific: Hong Kong, ChinaCanada: Toronto, Ontario

Europe/Middle East/Africa: Brussels, BelgiumLatin America: Miami, Fla.

HistoryFounded in 1971 as Federal Express Corporation

HeadquartersWorldwide: Memphis, Tenn.

Asia Pacific: Hong Kong, ChinaCanada: Toronto, Ontario

Europe/Middle East/Africa: Brussels, BelgiumLatin America: Miami, Fla.

Revenue$36 billion

WorkforceMore than 290,000 employees worldwide

Average Daily VolumeApproximately 8 million packages per day

Service AreaMore than 220 countries and territories,

including every address in the United States

Air OperationsMore than 375 airports served worldwide

Air Fleet692 aircraft:

Revenue$36 billion

WorkforceMore than 290,000 employees worldwide

Average Daily VolumeApproximately 8 million packages per day

Service AreaMore than 220 countries and territories,

including every address in the United States

Air OperationsMore than 375 airports served worldwide

Air Fleet692 aircraft:

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Products & Services

Deferred Export services•FedEx International Economy®•FedEx International Economy® Freight

Time Definite Export services•FedEx International Priority®•FedEx International Priority® Freight•FedEx Dangerous Goods Service(1)(1)

•FedEx International Priority ®for Valuable Cargo

Deferred Export services•FedEx International Economy®•FedEx International Economy® Freight

FedEx Import services•FedEx International Priority®•FedEx International Priority® Freight•FedEx Dangerous Goods Service (2)

•FedEx International Economy®

(1) Airport to Door service is available from BOM, DEL and BLR(2) Door to Airport service available to BOM and DEL

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The FDA Challenge

India

•India occupies a significant position in the World Pharma market (Fourth largest in the World) * •With over US $ 9/- billion in Exports * •India also accounts for 22% of the global Generics Market *•US is the largest Market for Indian Pharma Exports

•United States Food and Drug Administration

•The United States FDA is responsible for protecting the public health by assuring the safety, efficacy and security of human and veterinary drugs, biological products, medical devices, nation’s food supply, cosmetics, and products that emit radiation.

•All Pharma shipments are subject to FDA controls and compliance with stringent requirements

India

•India occupies a significant position in the World Pharma market (Fourth largest in the World) * •With over US $ 9/- billion in Exports * •India also accounts for 22% of the global Generics Market *•US is the largest Market for Indian Pharma Exports

•United States Food and Drug Administration

•The United States FDA is responsible for protecting the public health by assuring the safety, efficacy and security of human and veterinary drugs, biological products, medical devices, nation’s food supply, cosmetics, and products that emit radiation.

•All Pharma shipments are subject to FDA controls and compliance with stringent requirements

**

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The FDA Challenge

Issues Faced

• Pharmaceuticals shipments getting held in US customs , long delays due to stringent requirements.

• Additional Back end work for customer

• Return Shipments in some cases leading to major loss

• Loss in Revenue and Customers

Issues Faced

• Pharmaceuticals shipments getting held in US customs , long delays due to stringent requirements.

• Additional Back end work for customer

• Return Shipments in some cases leading to major loss

• Loss in Revenue and Customers

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Identification & Corrective Actions

Root cause of issues faced

•Lack of FDA requirement knowledge of Indian customers

•Inaccurate Information on the Commercial Invoice

• Missing Details about product

• Non availability of pre requisites

• Licenses not available

Root cause of issues faced

•Lack of FDA requirement knowledge of Indian customers

•Inaccurate Information on the Commercial Invoice

• Missing Details about product

• Non availability of pre requisites

• Licenses not available

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Identification & Corrective Actions

Corrective Actions taken

Customers• Customers were informed / Educated on requirements

•Training to customers staff•Assistance on paperwork •Proactive paperwork check

Internal Controls• Educating front line staff • Creating of Product Job Aid• Intelligent Invoice developed

Alignment with Destination•Pre Alerts with US teams for faster clearance

Corrective Actions taken

Customers• Customers were informed / Educated on requirements

•Training to customers staff•Assistance on paperwork •Proactive paperwork check

Internal Controls• Educating front line staff • Creating of Product Job Aid• Intelligent Invoice developed

Alignment with Destination•Pre Alerts with US teams for faster clearance

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The Intelligent Invoice

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Conclusions - Results

•Faster clearance of shipments

•Reduction in the number of shipments held by FDA / Customs

• Transit Time improvements •Reduction of 24 hrs •Pre Clearance

•Customers were better informed / prepared while shipping •Improvements in the quality of paperwork•Proactive about requirements

•Faster clearance of shipments

•Reduction in the number of shipments held by FDA / Customs

• Transit Time improvements •Reduction of 24 hrs •Pre Clearance

•Customers were better informed / prepared while shipping •Improvements in the quality of paperwork•Proactive about requirements

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Conclusions – Benefits •Retention of Customers and Customers faith in our Service

•Addition of New Customers

•Increase in business / revenue

• Improvements in service levels / Specialization

•Better Utilization of staff

•Win Win situation for all stakeholders

•Retention of Customers and Customers faith in our Service

•Addition of New Customers

•Increase in business / revenue

• Improvements in service levels / Specialization

•Better Utilization of staff

•Win Win situation for all stakeholders

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Thank You