FedEx Freight Game Changer From the Chairman
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FedEx Freight Game Changer
January/February 2011
POST | READ COMMENTS (3)
As many of you know, on Jan. 31 our less-than-truckload (LTL) businesses,
FedEx Freight and FedEx National LTL, are combining into one operating
company, FedEx Freight. What you may not know is that the merger reflects a
growth strategy that combines customer-focused differentiation with innovative
change.
“We are reinventing the LTL industry based on our customers’ evolving needs,”
says Bill Logue, president and chief executive officer, FedEx Freight. The new
strategy not only addresses LTL industry challenges with overcapacity and
unstable pricing, it improves the FedEx Freight value proposition by providing
choice, reliability and simplicity in all lengths of haul. It’s exactly what our
customers have been asking for.
Steering the LTL industry in a new direction
by meeting customer needs.
Two choices
On Jan. 31, FedEx Freight will launch two distinct services that will position us to meet 100 percent of our customers’ LTL
requirements by delivering two levels of service:
FedEx Freight® Priority when speed is critical to meet supply-chain needs.
FedEx Freight® Economy for less time-sensitive shipping at a lower cost.
Today, more than one-third of the LTL market moves at a deferred speed, creating growth opportunities for a carrier that
can provide both a fast-cycle and a deferred option nationwide. Independent studies confirmed the need for transit-time
options in all lengths of haul. To top it off, the studies also highlighted market’s confidence in the ability of FedEx to deliver
this new value proposition.
This changes everything say customers who are looking forward to a new way of working. “The new network will give us
the options necessary to manage our LTL transportation in a way that hasn’t been possible in the past,” says Fred
Anderson, director of transportation at Dillard’s, whose 310 retail locations span 29 states. “We can now choose between
speed and cost through a seamless network.”
One experience
Simplicity for customers — that’s what the new value proposition is all about. As of Jan. 31, all LTL shipments, regardless
of the service they choose, will provide:
One LTL pickup, one LTL delivery
One contact to request service
One bill of lading
One invoice statement
As a result, FedEx Freight streamlines shipping operations for the customer by reducing congestion at the loading dock and
reducing paperwork. No competitor comes close to such simple, convenient service.
One company
FedEx Freight will offer a choice of LTL services from a single carrier. “We can make that claim only because FedEx Freight
developed a new operating model: a fully integrated, nationwide pickup and delivery network,” says Logue. Through
planning and engineering, the new network is designed to deliver the reliability customers expect from FedEx. At the same
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FedEx Freight Game Changer From the Chairman
http://fromthechairman.web.fedex.com/ftc/fedex-freight-game-...
time it greatly reduces operating costs by improving density and load factors, reducing miles and increasing asset
utilization.
One network
The network of 370 large centers in strategic locations provides intermodal rail access for some FedEx Freight Economy
shipments. It also includes 12 newly designed dual hubs for highly efficient sorting of both FedEx Freight Priority
and FedEx Freight Economy shipments. Technology that we use today, such as handheld computers for our drivers and
dock computers, will ensure that every shipment receives the service selected by the customer.
“We will continue to reinvent the LTL industry,” Logue says. “It’s going to be an ongoing focus on improving and simplifying
transaction processes and enhancing the customer experience with further automation for improved accuracy and
efficiency for both us and our customers.”
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ALL COMMENTS
maria says
February 24, 2012 at 2:32 pm
I am impress with the willingness of ltl reps willing to help frt reps when clarify locks down..Or when we have questions..regarding
procedures. ..We are learning to help each other..Thank you … mr
Reply
Chris says
February 11, 2011 at 8:56 am
I had the pleasure to be present at the call center in Harrison, AR the week after the new product launch. Despite the signficant
weather disruptions impacting 62 terminals and 10 hubs, the call center reps were providing significant value to our Freight customer
experience and assisting the transition to Priority and Economy product lines. Fantastic to see 120+ employees working significant
hours to help achieve this critical accomplishment during the first week of execution – BZ!
Reply
Stephanie says
February 9, 2011 at 8:55 pm
Hello i worked for Fedex for 20years CHANGE IS GOOD FOR ME,CUSTOMERS AND NEW CUSTOMERS. Thank you
Reply
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