Essay on Fedex V. Ups

4609 Words May 8th, 2013 19 Pages
The Success of FedEx vs. United Parcel Service (UPS)

Executive Summary

In today’s ever advancing world, shipping services are an essential part of our everyday lives. The two largest companies’ in the shipping industry today are Federal Express Corporation (FedEx) and the United Parcel Service (UPS). FedEx is an international company that believes in quality customer service. With its consistently high quality and innovative services, FedEx has achieved a relatively high market share in the global package delivery market. FedEx is currently the global leader in the express package delivery market, and it offers delivery services in over 220 countries and territories. The biggest competition that FedEx faces today is UPS. UPS
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The packages would travel on an automated conveyor and pass through a series of chutes (Figure 1). Another automated sort system for very lightweight packages would be the packages moving on tilt trays and sliding into the chutes. After lightweight packages traveling through the chutes, they are usually consolidated into bags for efficient handling. Each bag contains about 10 to 20 packages destined for the same geographic location (Singh, 2007). Besides smalls, other sizes of packages are often moved along with the conveyor belt at the hub right after fresh off the airplanes and each unit slides down the wall to employees waiting to enter them into the sorting process.
Federal Express (FedEx)
Federal Express (FedEx), started its business in 1971, processes approximately 3.5 million packages on a daily basis (FedEx Facts, 2008). Its worldwide headquarters is located in Memphis, Tennessee. FedEx has been successful in the air transportation sector, serving millions of customers in over 220 countries. It is one of the major private U.S. companies offering a one-class service for door-to-door shipment of small parcel packages (Cheema, 1995). Priority overnight service uses a global air-and-ground network system to speed up delivery of time-sensitive shipments. FedEx has 15 global hubs in its hub-and-spoke system: 8 in the United States, 3 in Europe, 3 in Japan and Philippines, and 1 in the Middle East.

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