The key factors that have led to FedEx being successful are focusing on its people and Kinko’s
FedEx is to expand its network out of Seoul and to enhance its brand power

[img:페덱스1.jpg,align=,width=322,height=245,vspace=0,hspace=0,border=1]

Although the global express delivery industry saw disappointing business results in 2005, FedEx Korea recorded double-digit growth and surpassed its target. How does FedEx Korea continue to be successful? We met with Mr. David Carden, the Representative Director of FedEx Korea, to ask him these questions. He responded throughout the interview that the company’s focus on its people and Kinko’s business were the key reasons.

Q. Despite the decline of global express delivery companies in Korea in 2005, FedEx has continued to grow compared with its competitors. What do you think of FedEx Korea’s business in 2005? And please introduce the key factors which led to the success of FedEx last year.

A: In 2005, we focused on service upgrades. We delayed Pick Up Times and strengthened the Network. As a result, our customers found the FedEx service to be more friendly and convenient.

When it comes to our network, we expanded it in Seoul and other metropolitan areas and FedEx benefited from the expansion of the network.

Furthermore, FedEx Korea has conducted maintenance of old facilities adopting global FedEx standards. Stations such as RSUA, HINA, and JSPA are good examples of this. As FedEx Kinko’s has been growing since the end of 2005, the number of deliveries have automatically increased.

Most importantly, the biggest achievement is the fact that management systems such as  ‘Everybody Sales’ and ‘Purple Promise’ have successfully been implemented by FedEx Korea.

[Editor’s Note: When being asked about business results, Mr. Carden repeated that the specific numbers cannot be announced. However, Mr. Carden said that the company experienced positive business results and service upgrades in 2005.]

Q: Since 2005, FedEx has improved service point infra as FedEx Korea opened RSUA, HINA, and JSPA stations. Could you tell us about its background and additional plans in the future relating to this?

A: The improvement in service point infra is directly connected with the working environment for FedEx Korea employees. As you can see here at the JSPA station today, all facilities for our employees, such as showers, rest rooms and locker rooms, are constructed according to FedEx global standards.
Improvements in the working environment for employees are consistent with the service upgrades for employees. FedEx Korea reopened its JSPA station to serve Seoul’s Kang-seo, Kuro, Yeouido and Dongjak areas. JSPA has served these areas and other areas outside of Seoul including Incheon and Bucheon. Reopening JSPA is not only due to an increase in deliveries but also to improve customer service.
Accordingly, a separate station to serve Incheon and Bucheon areas will be opened in April, 2006. The station will be the biggest of FedEx Korea’s stations. In addition, 4 more stations in Busan, Suwon and Seoul will either be reopened or newly opened.

Q: Explain the characteristics of the global express delivery market in Korea and FedEx Korea’s new goals and strategy in 2006.  

A: Although the global express delivery market declined in 2005 due to the stagnation of the Korean economy, Korea is still an important market for FedEx and it shows great potential. This is not my personal opinion. The FedEx global headquarters considers Korea to be an important market due to its close proximity to China, which is experiencing tremendous growth.
Korea has a well-developed high tech and high-end, valued-added businesses and is located between China and Japan. Two years ago, FedEx only operated flights 3 times per week to and from Korea, but now FedEx Korea manages its own air cargo craft 20 times a week to and from Korea. This reflects the rapid expansion of the Korean market. FedEx Korea plans to focus on the global export express delivery market. It also plans to add banking services and expand its Ground Network.
Also, 5~6 cargo flights will be added to the air flight schedule within this year and a 7 day/24 hour service operation system is expected to commence with the additional flights.
And through FedEx Kinko’s office, our brand recognition will be enhanced.
FedEx Korea operates 21 FedEx Kinko’s offices in Seoul. More offices will be opened out of Seoul in 2006. Airway express delivery orders have increased through FedEx-Kinko’s offices. For example, when a customer sends document from Seoul to a Kinko’s service center in New York, FedEx-Kinko’s employee can print it out and deliver it to the US company in New York.
For Kinko’s, Korea is the largest market following USA and Japan. Therefore, the role of FedEx Express is expected to grow as well.
PowerPad, the model delivery service for freight and information at the same time, will be introduced in October, 2006.

Q: In the global logistics market, integrators like FedEx are moving to the heavy cargo industry. However, unlike our competitors, FedEx is the only one that has kept silent. Why doesn’t FedEx participate in the M&A market? Please explain the FedEx policy on heavy cargo.

A: FedEx had already experienced many M&As. FedEx does not participate in M&As these days because we already have sufficient capacity. As you mentioned, heavy cargo is now becoming a definite trend. However, it is not our core business. Of course, the sector has big potential. FedEx is considering to develop a global station solely dedicated to heavy cargo. However, it is only in the planning stage at this point of time.

Q: Tell us about your life in Korea.
A: Frankly, I prefer living in Korea than my home town in the USA. I recently visited my home town but I missed Korea after a few days. Korea is a dynamic and beautiful place. I am a big fan of Korean food. I hope to live in Korea as long as possible.

[Editor’s Note: Mr. Carden enjoys drinking while eating Korean barbecue. Although he cannot speak Korean, he sometimes understands what Koreans are saying. He emphasized a people-focused management philosophy.