FedEx Supply Chain

Last updated
FedEx Supply Chain
Formerly
  • H. Shear Trucking Company (1898-1940)
  • GENCO (1940-2010)
  • GENCO ATC (2010-2017)
Type Subsidiary
Industry Transportation
Founded1898;125 years ago (1898)
FounderHyman Shear
Headquarters,
Area served
Worldwide
Key people
Scott Temple, President & CEO [1]
Dr. Udo Lange, President & CEO, FedEx Logistics
Products
RevenueIncrease2.svg US$45.2 billion (FY2020) [2]
Number of employees
11,000 (2017)
Parent FedEx Corporation
Website supplychain.fedex.com

FedEx Supply Chain, [3] [4] formerly known as GENCO (General Commodities Warehouse & Distribution Co.) is a major third-party logistics (3PL) provider in the United States and Canada. [5] It serves various industries, including: technology & electronics, retail & e-commerce, consumer & industrial goods, and healthcare industries. The company was founded in the year 1898 by Hyman Shear as H. Shear Trucking Company in Pittsburgh. [6] Currently it is a subsidiary of FedEx.

Contents

FedEx acquired the company in 2015 and re-branded it as FedEx Supply Chain in 2017. [7] The company manages 130 Warehouse and Distribution Center operations in North America region with a total of 35 million square feet of warehouse space under its management. FedEx Supply Chain was recognized by Multichannel Merchant as a Top 3PL for 2018. [8]

History

Early history

Logo of GENCO prior to being branded as FedEx Supply Chain GENCO logo.svg
Logo of GENCO prior to being branded as FedEx Supply Chain

In 1898, Hyman Shear began operating a drayage company known as H. Shear Trucking Company. Leading a blind horse with a wagon, Hyman delivered commodities to Pittsburgh and its surrounding communities. In 1917, H. Shear Trucking purchased its first gas-powered truck allowing the company to expand its delivery area. Within a short period of time, the company was operating seven trucks. [9]

Shear's son Sam enrolled in Pitt's School of Pharmacy, at his father's urging. After graduating in 1930 Sam moved with his wife to Pittsburgh's Squirrel Hill neighborhood and bought a pharmacy. After nine years of running the Pharmacy, he joined his father's trucking business. [10] Under Sam's leadership, the company's delivery fleet grew and warehousing and distribution services were added.

1960s-80s

By 1966, Shear Trucking Company employed over 20 drivers and was servicing customers such as Copperweld Steel, Mattel Toys, Kimberly-Clark, Kaufmann's and Gimbel's Department Store.

In 1971, Herb Shear - Sam's son - the third generation of the family, joined his father and expanded the company's base of operations to include public warehouse operations. The company was awarded the contract to provide the Pennsylvania Liquor Control Board distribution services to Western Pennsylvania in 1975 and in 1988, Distribution Resources Inc. (DRI) was formed in Eastern Pennsylvania to provide customers with flexible labor-intense services including light product assembly, refurbishing, manipulation, and general distribution services. [11]

Scanning Solutions, Inc., a division dedicated to the development of returns processing software and reclamation center management, was formed in the late ‘80s. The company offered retailers, wholesalers and manufacturers with flexible, centralized returned goods processing and asset recovery services. [11] Herb also pioneered a new software platform known as R-Log to manage Reverse logistics. [6] GENCO became an industry leader in reverse logistics and liquidation services. [12] [13]

1990s-2015

1995 saw the consolidation of numerous company divisions and services under one banner name, "GENCO Distribution System". Along with the new name, came new concepts and developments in supply chain management. 1997 brought about new faces and services through the acquisition of Alpha & Omega; an established Pittsburgh-based warehouse management system (WMS) software development company. [11]

GENCO ended the past century positioning itself with a broader range of services through the 1999 acquisition of two companies, Cumberland Distribution Services, building upon the company's base and history of distribution center management services; and Materials for Today's Learning / Joint Ventures, in the fulfillment industry. It also acquired IOgistics in 2003 and Capital Returns in 2005. In 2010 GENCO acquired publicly held Downers Grove, Illinois based ATC Technology Corp. The deal was valued at $512.6 million. After the acquisition the combined company came to be known as GENCO ATC. [2] [14]

Through the acquisition of GENCO ATC by FedEx in 2015, FedEx Supply Chain was formed. FedEx acquired the company for $1.4 billion. [15]

FedEx Supply Chain

The company serves multiple industries and is a leader in non-asset-based transportation, warehousing and distribution, and value-added services. It also works with reverse logistics processes, including returns, recommerce and recycling. The company processes 358 million returns annually and more than 500K direct-to-consumer shipments daily. The company was recognized by Multichannel Merchant as a Top 3PL for 2018. [3]

FedEx Supply Chain became one of the business units of a newly created operating company of FedEx - FedEx Logistics - in January 2019. FedEx Logistics was created by the re-branding of FedEx Trade Networks. [16]

Leadership Team

Related Research Articles

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In commerce, supply chain management (SCM) deals with a system of procurement, operations management, logistics and marketing channels so that the raw materials can be converted into a finished product and delivered to the end customer. A more narrow definition of the supply chain management is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally".This can include the movement and storage of raw materials, work-in-process inventory, finished goods, and end to end order fulfilment from the point of origin to the point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.

<span class="mw-page-title-main">Logistics</span> Management of the flow of resources

Logistics is a part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers. Logistics management is a component that holds the supply chain together. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items.

<span class="mw-page-title-main">Ryder</span> American transportation company

Ryder System, Inc., commonly known as Ryder, is an American transportation and logistics company. It is known for its fleet of commercial rental trucks.

Caliber System Inc., known until 1996 as Roadway Services Inc., was a transportation holding company based in Akron, Ohio. During its history, Caliber owned a number of logistics companies including Roadway Express, Viking Freight and Roadway Package System (RPS) among others. Roadway Express was spun off in 1995 and Caliber was acquired by FedEx in 1998 with subsidiaries becoming FedEx Ground, FedEx Freight, FedEx Custom Critical and FedEx Global Logistics.

<span class="mw-page-title-main">Penske Truck Leasing</span>

Penske Truck Leasing Co., L.P. is a joint venture of Penske Corporation, Penske Automotive Group, and Mitsui & Co. Headquartered in Reading, Pennsylvania, the company was founded by Team Penske owner Roger Penske on December 1, 1969. It is Penske’s flagship and best known division. The firm serves customers in North America, South America, Europe, Asia, and Australia; among its services are full-service commercial truck leasing, truck fleet maintenance, truck rentals, and used truck sales. The company currently employs more than 36,000 workers worldwide and operates and maintains a fleet of more than 300,000 vehicles. Brian Hard is the president and CEO of the company.

Reverse logistics encompasses all operations related to the upstream movement of products and materials. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. Remanufacturing and refurbishing activities also may be included in the definition of reverse logistics." Growing green concerns and advancement of green supply chain management concepts and practices make it all the more relevant. The number of publications on the topic of reverse logistics have increased significantly over the past two decades. The first use of the term "reverse logistics" in a publication was by James R. Stock in a White Paper titled "Reverse Logistics," published by the Council of Logistics Management in 1992. The concept was further refined in subsequent publications by Stock (1998) in another Council of Logistics Management book, titled Development and Implementation of Reverse Logistics Programs, and by Rogers and Tibben-Lembke (1999) in a book published by the Reverse Logistics Association titled Going Backwards: Reverse Logistics Trends and Practices. The reverse logistics process includes the management and the sale of surplus as well as returned equipment and machines from the hardware leasing business. Normally, logistics deal with events that bring the product towards the customer. In the case of reverse logistics, the resource goes at least one step back in the supply chain. For instance, goods move from the customer to the distributor or to the manufacturer.

DHL Supply Chain is a division of Deutsche Post DHL and is affiliated with DHL. Headquartered in Bonn, Deutsche Post has 510,000 employees.

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C.H. Robinson is an American Fortune 200 provider of multimodal transportation services and third-party logistics (3PL). For 2021, it was ranked 5th in the world and 1st in the US among third-party logistics providers by gross logistics revenue/turnover. The company offers freight transportation, transportation management, brokerage and warehousing. It offers truckload, less than truckload, air freight, intermodal, and ocean transportation.

Blue Yonder is a supply chain management company that was acquired by Panasonic in 2021. Founded in 1985, the company is headquartered in Scottsdale, Arizona, with offices globally. Its acquisitions have included Yantriks, RedPrairie, i2 Technologies, Manugistics, E3, Intactix, and Arthur. It provides an AI/ML-enhanced platform and solutions for over 3,000 retail, manufacturing, and logistics customers around the world.

<span class="mw-page-title-main">Exel</span> Logistics company

Exel was a supply chain and logistics company operating in North America and Europe, which became a subsidiary of the German firm Deutsche Post in 2005. It reported annual revenues of about $4.2 billion in February 2012.

Total Logistic Control is a supply chain company started around 1902 by George K. Taylor. The company began as a regional distributor of frozen products known as Taylor Cold Storage. They operated frozen warehouse operations for other regional food companies in Great Lakes region. Around 1930, they merged with Wisconsin Cold Storage. In 1958, Taylor became the first public refrigerated warehouse to offer consolidated LTL distribution to its customers. In the 1960s, their total freezer capacity hit 10,000,000 cu ft (280,000 m3). Taylor introduced TINMAN, the Total INformation MANagement system, in 1976, becoming the first firm in the industry to offer on-line inventory management.

Averitt Express is a privately owned transportation and supply chain management company based in Cookeville, Tennessee.

Extron Logistics, LLC is an American company that provides solutions to supply chain operations.

<span class="mw-page-title-main">CaseStack</span> American company

CaseStack is an American company that provides supply chain management (SCM) services, including warehousing, transportation, and supply chain management software (SCMS) to consumer packaged goods companies (CPGs). It uses a proprietary software as a service platform for its collaborative retailer consolidation programs. CaseStack has been recognized in Food Logistics' Top 85 3PL Providers, Global Logistics & Supply Chain Strategies 100 Great Supply Chain Partners and Inbound Logistics' Top 100 3PL Providers.

Third-party logistics is an organization's long term commitment of outsourcing its distribution services to third-party logistics businesses.

<span class="mw-page-title-main">IES Ltd</span> Supply chain management company

IES, Ltd. was a supply chain management software company that developed software for freight forwarders, customs brokers, 3PLs, importers, exporters, NVOCCs and other intermediaries to submit entries to the U.S. Customs and Border Protection, Canada Border Services Agency and other agencies.

Intelligrated, Inc. was a material handling automation and software engineering company based in Mason, Ohio. In 2016, it was acquired by Honeywell, who made it a subsidiary and renamed it to Honeywell Intelligrated. 2017, Honeywell Intelligrated reported revenue of $1 billion. Honeywell Intelligrated has production and service locations in the United States, Canada, India, Mexico, Brazil, and China.

Flexport Inc. is an American multinational corporation that focuses on supply chain management and logistics, including order management, trade financing, insurance, freight forwarding and customs brokerage. The company is headquartered in San Francisco, California, has thousands of employees and has annual revenues of more than $3.3 billion.

Kenco Group, or Kenco, is a privately held Chattanooga, TN-based company that provides logistics services. Kenco specializes in distribution and fulfillment, transportation management, material handling services, and warehouse real estate management. The company is known for being the largest woman-owned third party logistics company in the United States. Its headquarters is located in Chattanooga, Tennessee.

SonicAir, Inc. was an integrated logistics service company, providing Logistics Planning; Strategic Stocking, Returns Management, SmartCourier Field Repair, Depot Repair, Parts Distribution, and Transportation Services to its customers. Acquired by UPS in 1995, SonicAir was eventually absorbed into the UPS Logistics Group.

References

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  2. 1 2 "GENCO completes acquisition of ATC Technology Corp". www.bizjournals.com. Retrieved 2018-09-08.
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  4. "Spare Parts Logistics Market 2023 Global Analysis of Key Players - openPR". www.openpr.com. Retrieved 2018-09-08.
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  6. 1 2 Kuglin, Fred A. (2015-07-29). Pharmaceutical Supply Chain: Drug Quality and Security Act. CRC Press. ISBN   9781482258943.
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  8. "About FedEx Supply Chain - FedEx Supply Chain". FedEx Supply Chain. Retrieved 2018-09-08.
  9. "With GENCO acquisition, FedEx turns to returns". www.joc.com. Retrieved 2018-09-08.
  10. "Cornerstones | Pitt Magazine | University of Pittsburgh". www.pittmag.pitt.edu. Retrieved 2018-09-08.
  11. 1 2 3 "Herbert S. Shear to receive 2005 Salzberg Medallion". SU News. Retrieved 2018-09-09.
  12. "FedEx buys O'Hara-based logistics company Genco". Pittsburgh Post-Gazette. Retrieved 2018-09-09.
  13. Magazine, Reverse Logistics. "FedEx and GENCO: A Powerful Combination | RL Magazine | Reverse Logistics Association". rlmagazine.com. Retrieved 2018-09-09.
  14. Kuglin, Fred A. (2015-07-29). Pharmaceutical Supply Chain: Drug Quality and Security Act. CRC Press. ISBN   9781482258943.
  15. "FedEx's latest acquisitions exceed $1 billion". www.bizjournals.com. Retrieved 2018-09-09.
  16. "FedEx Trade Networks Rebrands as FedEx Logistics". About FedEx. Retrieved 2019-02-12.