Faster Deliveries, Quicker Time to Market, Tighter Inventory Control Benefit Customers

FedEx Freight today announced that it has reduced transit times on more than 3,300 regional next-day, second-day and extended routes since Jan. 1, 2008.

These service improvements enable faster delivery of freight, quicker go-to-market time and better inventory management for customers using fast-cycle logistics. FedEx Freight is a leading provider of regional less-than-truckload (LTL) freight transportation services and an operating company of FedEx Corp.

Collectively, these transit-time enhancements at FedEx Freight improve service within the continental United States, Hawaii, Mexico and Canada. FedEx Freight offers next-day or second-day service for more than 68,000 network lanes.

"As a regional LTL market sector leader, FedEx Freight continuously evaluates its transportation network to determine improvement opportunities," said Douglas G. Duncan, president and CEO, FedEx Freight. "Our dedicated employees and state-of-the-art, proprietary technology systems enable us to constantly refine our lanes, improve transits times and increase operational efficiencies."

This summer, FedEx Freight service from Omaha, Neb., was reduced from two business days to one to points in Illinois, including Chicagoland, and to locations in Wisconsin. Other enhancements include two- to one-business day service from St. Louis to points in Minnesota, Iowa and Wisconsin.

Most recently, service was improved in more than 170 lanes, including new next-day service between central Michigan and points in Illinois, Indiana, Iowa and Wisconsin. Additionally, service lanes between central Michigan and several points across the continental U.S. and points in Hawaii were improved by one day. FedEx Freight has scheduled more than 1,600 similar lane enhancements for 2009.

The FedEx Freight dock and linehaul planning system allows individual service centers to manage all shipments with up-to-the-minute visibility.Coupled with the company's dock computer system, which controls dock routing and freight handling efficiency, service centers can meet strictly scheduled pickup and delivery times to ensure reliable movement of freight within the company's transportation network.

Reduced transit times also improve FedEx Freight's efficiencies by decreasing diesel fuel consumption and equipment use, which indirectly benefits customers while affirming the FedEx commitment to environmental responsibility.

About FedEx Freight

Within FedEx Corp., the FedEx Freight Segment had annual revenues of $4.9 billion in fiscal year 2008. With corporate offices in Memphis, Tenn., the Segment includes FedEx Freight, a leading U.S. provider of regional LTL freight services; FedEx National LTL, a leading U.S. provider of long-haul LTL services; FedEx Freight Canada, an LTL operating company serving most points in Canada; FedEx Custom Critical, North America's largest time-specific, critical shipment carrier; and Caribbean Transportation Services, the leading provider of airfreight forwarding services between the United States and Puerto Rico. For more information, visit the FedEx web site, www.fedex.com.

About FedEx Corp.

FedEx Corp. provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $39 billion, the company offers 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.

 

MISSISSAUGA, ON -- The world's largest package delivery company is establishing a new distribution centre at the Calgary International Airport to meet the rising demands of Alberta's economy.

UPS Canada announced today it is building a 150,000-square-foot distribution facility on Aero Drive NE. The $26 million facility will offer state-of-the-art technology to facilitate import, export and Canadian domestic shipments while allowing UPS to double its package processing capability over time.

"Calgary is clearly Alberta's premier international gateway for cargo today and in the future and this new facility will ensure current and new customers continue to receive expedient, reliable and convenient service," said Mike Tierney, president of UPS Canada.

The new building is the latest addition to Calgary's expanding transportation and logistics industry, which has grown 77 per cent - twice as fast as the rest of the economy - and doubled the size of its workforce to 40,700 in the past 10 years. The new UPS distribution centre will employ 415 of the air transport sector's 6,500 employees.

Since 2003, UPS has seen a 60 per cent increase in the volume of orders from the greater Calgary area, particularly from the retail, technology and financial sectors. The surge in demand prompted the company to invest in a new facility that will ease the flow of parcels through the distribution process and ensure it maintains an optimal level of customer service.

"Calgary's economy is extremely competitive and only by providing superior service to our customers can we continue to grow with the rising demands of the city's businesses," said Tierney. "The new facility will allow us to reduce the time customer shipments spend in transit, which ultimately means our customers continue to receive the level of speed and service for which UPS has become world renowned."

The new UPS facility will have airside access in the Airport's YYC Global Logistics Parks, highly efficient, multifunctional, international trade and transportation hubs that move high volumes of goods to and from local, regional and international destinations. The Parks are part of The Calgary Airport Authority's mandate to foster economic development in the city.

"Calgary is western Canada's largest transportation and logistics centre and one of the major reasons is the 'air cargo bridge' that we've created," said Stephan Poirier, vice president and chief commercial officer for The Calgary Airport Authority. "It provides companies such as UPS access to 24/7 cargo services and an impressive and growing network of integrated transportation systems, services and companies, all on Airport land."

YYC Global Logistics Parks have more than doubled air cargo movement at the Calgary International Airport to 134,000 tonnes in 2007, from 66,000 tonnes in 1999, and have helped turn the Airport into one of the city's major economic engines. Today, the Airport generates more than $5 billion of annual economic activity, approximately 10 per cent of Calgary's gross domestic product, and more than 15,000 people work on Airport land.

UPS's new airport distribution centre will house 157 trucks and will service Calgary as well as surrounding communities, including Airdrie, Okotoks, High River, Bragg Creek, Cochrane, Strathmore, Canmore and Banff. UPS will continue to operate its three separate distribution centres in the city until the new facility becomes operational in October 2009.

UPS is the world's largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, GA., UPS serves more than 200 countries and territories worldwide. The company can be found on the Web at www.UPS.com.

Jim van Leenen, CEO and President, Flash Global Logistics, Inc. Issues Statement to the Media on Disruption in the Logistics Industry

PINE BROOK, N.J.--“The announcement by DHL to exit the U.S. domestic express and parcel markets effective January 30, 2009 was a shot heard around the world by shipping managers. While there were signs that DHL had challenges, it certainly appears that many logistics professionals were caught off guard by the degree and timing of the announcement. Even though service parts logistics (SPL) was probably not paramount in the minds of DHL leaders, both here and in Bonn, it raises questions on the impact to that segment of their business and the clients they serve.

“In the case of domestic express and ground parcel, shippers now have one less choice. Notwithstanding whatever Airborne and DHL may or may not have done right, they were a force in the market. Clearly from the shipper’s viewpoint, they kept the other two competitors honest. Unlike trucking, ocean, air freight, customs house brokerage, warehousing and virtually every other mode that logistics managers utilize, express and parcel is the only component where they will suffer from a “duopoly”. As DHL said in an earlier advertisement: “Competition. Bad for Them. Great for You.”

“What does this mean and possibly signal for SPL managers in the future? We have heard that the main reason for DHL to even have SPL business is to fill yellow trucks and planes. If there is no domestic DHL service anymore, is there a compelling reason to support DHL’s SPL business in the future? One could logically argue that given limited resources, focusing all their efforts on just their remaining core international express offering is a likely outcome. There has been no announcement or indication that DHL SPL is also exiting the US market, but given recent developments, it is safe to say it’s more possible since November 10th of this year.

“This turn of events will certainly challenge the remaining integrators to absorb transportation business left behind by DHL while remaining focused on the relentless demands of the service parts logistics segment of their total supply chain solution business model. Phasing out a large scale integrator places burden not only on SPL clients who are being displaced, but this excess business, already not a core focus for the integrator, further distracts them from service satisfaction for SPL clients by sheer volume.

“This begs the question: can large scale carriers continue to play in market space down to the SPL level, where mission critical service often demands intense, absolute and immediate service and performance parameters? The time is now for service parts professionals to be presented with solutions honoring the unique demands of their specialized logistics needs.

“While we have built-in bias to be sure, those of us who are “an inch wide and a mile deep” in doing nothing but providing SPL solutions, I am here to tell you that we see the world totally different. Unlike large scale integrator generalists, Flash Global Logistics’ sole focus is service parts logistics and improvement of SPL and the critical SPL supply chain. Every decision we make on staffing, technology and innovation is driven totally by what adds value to our service parts logistics clients. In addition, we do not have the burden of filling trucks and planes. Therefore, we are also more focused and objective about the total end-to-end solution.

“These dynamics and how we think about our clients is the main reason Flash Global Logistics is the preferred solution for the mission critical parts industry. Headquartered in New Jersey with a far-reaching global presence, Flash Global Logistics has been providing critical logistic services to leading businesses in the U.S. and around the globe for 25 years.

“Over the last 12 months, Flash Global Logistics has seen its number of customers increase, including many more from the Fortune 500. Additionally, volume with existing customers is expanding, and Flash Global Logistics realizes further operational improvements attained by stepped up investment in IT and its logistical infrastructure.

“Based on inquires we are receiving from integrator-based SPL clients, there may not be a better time than right now to learn why leaders in high tech, healthcare, telecommunications, semiconductor, computer data storage and networking industries are turning to Flash Global Logistics for their global mission critical supply chain needs.”

About:

Flash Global Logistics, Inc. provides mission critical inventory management and supply chain solutions for clients. Worldwide, Flash Global Logistics’ 570 field service locations, 13 multi-client distribution centers, four command centers and five regional offices enhance clients’ profitability, efficiency and scalability. Clients include leading companies in high tech, healthcare, telecommunications, semiconductor, computer data storage and networking industries requiring global parts availability in 90 minutes, 2 and 4 hours, real-time information using real-time visibility, strategic inventory positioning, an advanced proprietary Web-based IT solutions system, and local personnel with global business market expertise. Flash Global Logistics’ customized solutions improve customer satisfaction while minimizing expense. Client focus, flexibility, and responsiveness ensure its portfolio of Fortune 500 customers receive the most comprehensive services for critical parts and products, inventory management and business continuity. www.flashlogistics.com

 

Operations Testing and Employee Training Underway in Preparation For Opening in First Half 2009

MEMPHIS, Tenn.--FedEx Express, a subsidiary of FedEx Corp. and the world’s largest express transportation company, announced today an updated schedule of operations for its new Asia-Pacific Hub at Guangzhou Baiyun International Airport, in southern China.

Now in the testing phase, the new Asia-Pacific Hub is expected to be fully operational the first half of 2009. The revised operations date provides FedEx with the necessary time to fully test all systems and processes, as well as work closely with the Guangzhou authorities to ensure all necessary approvals are in place.

Over the past several months, significant progress has been made in key areas, including construction, IT, employee training, and the installation of the hub’s unique package and sorting system, comprised of 16 high-speed sorting lines, seven round-out conveyer belts, as well as a total of 90 primary and secondary document-sorting splits. This advanced system will enable FedEx to sort up to 24,000 packages an hour at the start of operations.

The new hub features its own ramp control tower—a first for an international air express cargo company facility in China. The ability to manage operations at the hub by controlling aircraft movements on the ground, aircraft parking plans and loading/unloading priorities will optimize efficiency and ensure operations are of the highest standard for FedEx so that customers receive the seamless, reliable service they expect from FedEx.

“Since we announced plans for a new FedEx Asia-Pacific Hub in Guangzhou in 2005, we have achieved many important milestones toward our vision of delivering growth while providing our customers with expanded access to the global marketplace,” said David L. Cunningham Jr., president Asia Pacific, FedEx Express. “As the largest FedEx hub outside of the U.S., it will help stimulate business both in southern China and globally, and will enable us to meet the growing demands for air express services in the region over the next three decades.”

Operations testing has begun, which includes the Hong Kong/Guangzhou cross border transportation processes, sort systems, and flight operations. There will be no service impact to FedEx global customers as a result of the revised operating schedule, as the current Asia-Pacific Hub located in Subic Bay will continue operations.

About FedEx Corp.

FedEx Corp. provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $39 billion, the company offers 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.


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