February 1, 2002
FedEx Companies Compete Collectively to Simplify
Shipping for North American Importers
Business Editors
MEMPHIS, Tenn.--(BUSINESS WIRE)--Feb. 1, 2002--FedEx Trade
Networks, a subsidiary of FedEx Corp. (NYSE: FDX), today announced
new services, FedEx Trade Networks Ocean-Ground Distribution(SM)
and FedEx Trade Networks Air-Ground Distribution(SM). By bundling
services offered by other FedEx operating companies, FedEx
Trade Networks can use ocean or air transportation to provide
customers with customized and cost-effective solutions that
enable them to ship from Asia and Europe to multiple destinations
within North America.
"This unique service provides our customers a competitive
advantage and is a point of differentiation for FedEx Trade
Networks," said Jerry Leary, executive vice president for
FedEx Trade Networks. "And because we are handling customer
needs through FedEx companies, our customers eliminate unnecessary
handling, they save time and they lower their costs."
FedEx Trade Networks manages the entire transportation process
from origin to destination, eliminating the complexity of
working with different companies, distinct business practices
and pricing structures. Customers can now easily manage their
supply chains cost-effectively - reducing cycle times, working
with a single vendor, one unit price, one bill and one tracking
system - enabling them to focus on their own core business
competencies.
7-Eleven Tests FedEx Trade Networks Ocean-Ground Distribution
Service
Recently, 7-Eleven, Inc., the world's largest convenience
store retailer, negotiated with FedEx Trade Networks to be
the first retailer to use the new service, in order to improve
its distribution model for holiday products sourced in Asia.
FedEx Trade Networks managed the entire distribution process,
including freight forwarding by ocean; ground transportation
using less-than-truckload (LTL) freight (FedEx Freight), which
delivered to combined distribution centers that serve 7-Eleven;
and small package distribution (FedEx Ground), which delivered
directly to 7-Eleven stores.
As a result, 7-Eleven improved its distribution process,
lowered overall costs, increased margins on the sale of holiday
products, and offered its customers more competitive pricing.
Thanks to day-definite delivery provided by FedEx Trade Networks
Ocean-Ground Distribution, 7-Eleven store operators were better
able to manage the retail planning process, which resulted
in improved use of store selling space.
7-Eleven achieved a double-digit margin improvement and a
significant sales increase in holiday merchandise sales for
the period of Oct. 1 through Dec. 31, 2001, compared to the
same period for 2000.
"This is another example of 7-Eleven's efforts to move to
a lower cost model and a more store-friendly delivery system,"
said Dick Garrison, 7-Eleven's executive director of non-foods
merchandising. "We first used this approach last fall and
achieved higher sales with lower costs on our Halloween and
holiday seasonal merchandise. We continue to look for ways
to improve our structure and simplify procedure for our stores.
We used the same process to deliver our Valentine's Day product
assortment."
"This is a great example of the benefit to our customers
of the FedEx strategy to compete collectively and operate
independently," said Leary. "As with 7-Eleven, FedEx Trade
Networks Ocean-Ground Distribution offers tremendous customer
value - the customer gets one service, at one per package
price."
This new service soon will be available from other points
around the world. FedEx Trade Networks Ocean-Ground Distribution
and FedEx Trade Networks Air-Ground Distribution include services
from FedEx Express, FedEx Ground, and FedEx Freight.
About FedEx Trade Networks
FedEx Trade Networks is one of five operating subsidiaries
of FedEx Corporation, the premier global provider of transportation,
e-commerce, and supply chain management services. FTN is a
provider of customs brokerage, freight forwarding, consulting,
information technology, trade facilitation, and international
transportation solutions. Its operating companies include
Tower Group International, Inc., one of the largest customs
brokers in North America and an international freight forwarder;
Caribbean Transportation Services, the leading provider of
airfreight forwarding services between the United States,
Puerto Rico and the Dominican Republic, and WorldTariff, a
publisher of customs duty and tax information.
About FedEx
With annual revenues of $20 billion, FedEx Corp. is the premier
global provider of transportation, e-commerce and supply chain
management services. The company offers integrated business
solutions through a network of subsidiaries operating independently,
including FedEx Express, the world's largest express transportation
company; FedEx Ground, North America's second largest provider
of small-package ground delivery service; FedEx Freight, a
leading provider of regional less-than-truckload freight services;
FedEx Custom Critical, the world's largest provider of expedited
time-critical shipments; and FedEx Trade Networks, a provider
of customs brokerage, consulting, information technology and
trade facilitation solutions.
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CONTACT:
Media Contacts: FedEx Public Relations Jennifer McGowan, 404/350-9757
or 901/508-2101 jmcgowan@fedex.com
http://www.fedex.com or
7-Eleven Public Relations Margaret Chabris, 214/828-7285
mchabri@7-11.com
NOTE TO EDITORS: FedEx Trade Networks' press releases are
available on the World Wide Web at http://www.fedex.com.
KEYWORD: TENNESSEE
INDUSTRY KEYWORD: AIRLINES
TRANSPORTATION SOURCE: FedEx Trade Networks
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