FedEx Global Supply Chain Services

Transportation Management Services Process

The FedEx Managed Transportation Service allows our customers to send bulk transportation order requests using a
single interface stream and performs the following processes for each order:

Verify/validate order data

Select appropriate routing for order

Communicate transport order to FedEx Express or designated service provider

Shipment tracking

Process invoices from other carriers

Prepare billing for customers

FedEx SCS proactively monitors events that occur throughout the transportation alerts are generated for events
that occur outside the schedule.
A customer-specific logistics solution will be investigated and configured by Logistic Engineers together with Sales.
When the process has been discussed with, and agreed by the Client, the project can be implemented. A project
manager will be assigned to co-ordinate the complete implementation with the responsible party for each area.
Everything agreed and implemented will be documented in a Standard Operations Procedure document that will be
validated by the FedEx SCS Operations and the Client.

1.
2.

3.

An order is created in the Customers system via various modes (telephone, Internet, email, etc.).
The Customers information system sends the order details to the warehouse in order to pick and pack the
requested parts.
Once the parts are packed, the Customers system is updated with the actual weight and dimensions.

4.

At this stage all required data is available and is sent to the FedEx Supply Chain Manager in a pre-agreed
format.

5.

Based on pre-defined business rules (requested transit time, weight, dimensions, ship to country) the
FedEx Supply Chain Manager defines the appropriate carrier and exports the orders automatically to the
carrier system. Once this has been done, the FedEx Supply Chain Manager will send the orders
(electronically) to the carrier and provide the CUSTOMER warehouse with the (Air) waybill label. The
warehouse handler attaches the label to the correct box/pallet. With respect to the agreed pickup times, the
assigned carrier will collect the goods. On a daily basis FedEx Supply Chain Manager uploads the Order
Status Updates (Proof of Delivery, Proof of Collection, escalation codes, etc.). Based on these uploads, the
responsible Order Management Agent follows up on escalation orders.

6.

The status updates can be sent to the Customers system (or displayed via a customized web site) to
ensure full order visibility.

7.

FedEx GSCS will receive the invoices from all different carriers once a month. FedEx GSCS will check if all
invoices are accurate (Freight Bill Auditing) and send one consolidated invoice to the Customer.

How Does FedEx Ground Shipping Work

To get packages here to there, millions of customers turn to FedEx, a leading
global logistics service provider. FedEx operates a system of big regional
distribution centers, where sorters direct thousands of packages every night.
Ground service provides delivery via over-the-road trucks and local delivery
vans.

Delivery Times Via Ground

Sending packages via FedEx ground transportation means placing

them on vans and trucks for delivery. No air transport is involved, and the
rates are generally lower than for air delivery. FedEx uses a series of zones to
determine its rates; the higher the zone number, the farther the destination
location from the sender. According to rate schedules published in 2015, a 1pound package going to a zone 5 destination (601 - 1,000 miles away) costs
$7.67 via ground. The company adds a surcharge of $3.10 for residential
service. The cheapest air delivery to the same zone is a FedEx Express
Saver, with delivery guaranteed by 4:30 p.m. on the third day. Using this
service, delivery of a 1-pound package runs $14.10.

Routing Through the Hubs

The FedEx "Hub Network" is a system of 25 distribution centers located

in or near major cities. All packages designated for ground shipment go
through one. When a package enters the hub, the shipping address is
scanned and entered into the FedEx system. The package eventually reaches

a truck heading to one or more destination hubs. Packages scheduled for

local service go straight to a delivery vehicle. The delivery time is one to five
days in the continental United States.

Limits on Ground Services

Ground transport delivery is for packages up to 150 pounds and is

available Monday through Friday. The company makes deliveries by the end
of the business day. It allows senders to request a specific delivery date as
long as that date is not a Monday, a holiday, or a date earlier than the one
set by the company's own system. If the delivery is not made by the date
scheduled, the company provides a refund or a credit.

Home Delivery and Tracking

Although FedEx ground delivery is a business service, FedEx also offers

Home Delivery services via ground transportation within one to seven
business days. Either service allows you to track the packages through the
FedEx website or with Delivery Manager software that can be downloaded
and used in your own logistics system.

FedEx Global Supply Chain Services

Cold Chain Services Process

The Cold Chain Air Solution leverages the Custom Criticals Temp-Assured Validated Air service, which
was developed after extensive testing of temperature-controlled airfreight containers, along with thermal
mapping of FedEx Aircraft. The result is a validated process that provides a compliant audit trail and satisfies
the demands placed on customers temperature-controlled shipping requirements.
Working closely with Custom Critical in the U.S., FedEx EMEA offers Cold Chain solutions utilizing
temperature controlled air-cargo containers to several healthcare customers.

Description

The Cold Chain Air Solution is ideal for shipments requiring strict temperature control travelling
internationally. Featuring recording devices to capture temperature reading within the air-cargo container,
door-to-door shipment tracking, and exclusive use vehicles for pick-ups and deliveries and hard-copy
temperature documentation.
FedEx performs the collection at the customer facility after receiving a minimum of five-day advance notice.

On the day of collection the service provider delivers a fully operational and preconditioned container
(Envirotainer operating, loaded with batteries and the appropriate amount of dry ice) to the customers
facility. The customer checks the container and temperature settings then loads the container and provides
the appropriate paperwork.
The container is taken immediately to the pre-agreed export airport for loading onto the next outbound
FedEx flight. Upon arrival the shipment will be cleared and if required flown to an agreed upon regional air
hub. FedEx Custom Critical will collect the shipment and perform the end customer delivery.