Federal Express 2000 Annual Report Download - page 5

FedEx
Corp.
3
process, more than 200,000 em ployees and
contractors of FedEx Corporation benefit
from increased opportunities at a com pany
widely regarded as one of Am erica’s great
places to work.
STRATEGIC GROWTH OPPORTUNITIES
Although our strategic initiatives will require
additional spending over the next three years,
we plan to mitigate those costs as we consoli-
date support functions, rationalize services,
and reduce administrative costs. More impor-
tantly, we expect our new strategic plan to
generate substantial increm ental revenues
and profits beginning in FY01 as we focus on
the following growth opportunities:
>Generate increm ental volum e in our
core transportation businesses by
cross-selling all FedEx services.
An estim ated 1.7 m illion businesses ship
both express and ground packages, account-
ing for nearly 14 m illion shipm ents every day.
These “m ulti-m ode” shippers need one con-
venient, bundled solution, which is why our
integrated sales force has been trained to
cross-sell both FedEx Express and FedEx
Ground services.
Since we consolidated our sales team s on
April 1, we’ve already begun to see results.
Many com panies that have looked to FedEx
only for reliable express transportation are
now expanding to use our other services as
well. In fact, our bundling strategy brought
im m ediate – and high-profile – business as
Am azon.com tapped FedEx Express and our
new FedEx Hom e Delivery service to participate
in the largest e-com merce distribution event
to date: the delivery of 250,000 Harry Potter
books, with guaranteed Saturday delivery.
For our customers, our diversified portfolio
strategy is the right approach, offering the
right FedEx service at the right tim e and the
right price.
>A ttract new business from sm all and
m edium -sized custom ers.
Our sales integration plan also calls for m ore
dedicated attention to small and medium -
sized custom ers. We plan to add more than
250 account executives – m ost dedicated
to our smaller customers – and increase
prospecting for new accounts by up to 35% .
Why the special attention to sm all and
m edium -sized customers? First, these
sm aller accounts generate nearly half of total
FedEx revenue. Second, in today’s “start-up”
business environment, sm aller accounts
have unique needs for transportation, logis-
tics, and inform ation services. Whether it’s a
new Internet-based company or a traditional
brick-and-m ortar firm, sm aller com panies
are sourcing and selling worldwide, and they
need a reliable business ally to help them
navigate this global economy.
>Create new revenue stream s.
Since we announced our new strategic plan last
January, we have already taken two decisive
steps to create entirely new revenue streams
that complement our core businesses.