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FedEx Archives: 1999 Press Releases

( BW)(TN-FDX-CORP/KPMG)(FDX) FDX and KPMG Join Forces to Deliver the Next Generation of Global Supply-Chain Services; Alliance Will Provide Customers with Faster, More Reliable Solutions

    Business Editors

    MEMPHIS, Tenn.--(BUSINESS WIRE)--Oct. 25, 1999--FDX Corp. (NYSE:FDX), a $17-billion global supply-chain powerhouse, and KPMG LLP, a worldwide professional services firm, have formed a strategic alliance to deliver complete supply-chain solutions to large and mid-sized companies competing in the vast business-to-business global marketplace.
    As more companies adopt fast-cycle distribution methods to gain competitive advantage, orchestrating the daily movement of thousands of packages from suppliers to end-users on a global scale requires unique solutions. This alliance will deliver solutions aimed at companies interested in revamping their supply-chain planning and execution processes that connect suppliers and manufacturers with their end-customers across all industries.
    This alliance brings together two of the leading players in supply-chain management: FDX, with its industry-leading, supply-chain-focused consulting, information-management systems and transportation and logistics expertise; and KPMG, which provides world-class supply-chain consulting and e-integration services.
    The two companies will bring to market a complete, end-to-end solution, thereby alleviating the complexity of managing multiple providers for the design, implementation, and execution of supply-chain solutions. Businesses will be able to deploy customized solutions more rapidly, with greater reliability and accountability by using a single source provider who can develop the most appropriate solution for their respective needs.
    "Fast and complex systems integration of focused applications and transportation capabilities is critical to operating a robust, information-intensive supply chain," said Dennis H. Jones, executive vice president and CIO of FDX. "Through this joint approach, customers can realize cost savings and productivity improvements more rapidly."
    "FDX's industry-leading service capabilities and electronic commerce technologies will be integrated with KPMG to deliver more comprehensive offerings to our global customers," said Rand Blazer, vice chairman, KPMG LLP. "The skills and capabilities FDX brings to this alliance are an excellent cultural and strategic fit with KPMG."
    FDX and KPMG will offer the following consulting and integration services:

--	Integrated supply-chain consulting services to help customers optimize their business processes;
--	Supply-chain planning and visibility that will integrate Internet-enabled asset planning and monitoring services;
--	Supply-chain execution and management services that will integrate information services and operations coordination capabilities to provide global, synchronized distribution of products and services. Other services include just-in-time facility management and global order management.

    Initially, the alliance will combine the existing services of both companies to bring added value to shared customers. FDX and KPMG will further develop new capabilities by early next year, including solutions for global trade, reverse logistics and single point of access for supply-chain visibility.
    For FDX, combining the KPMG alliance with existing alliances strengthens its bid to become the most compelling end-to-end supply-chain solution provider in the industry.
    FDX Corp., a $17-billion holding company, provides comprehensive transportation, logistics, e-commerce and supply-chain management solutions. FDX Corp. principal operating subsidiaries are Federal Express Corp., the world's largest express transportation company; RPS Inc., a business-to-business ground small-package carrier; Viking Freight Inc., a less-than-truckload carrier operating principally in the western U.S.; Roberts Express Inc., a critical-shipment carrier; and FDX Logistics Inc., a contract logistics provider.
    KPMG LLP is the U.S. member firm of KPMG International. In the U.S., KPMG partners and professionals provide a wide range of accounting, tax and consulting services. As a provider of information-based services, KPMG delivers understandable business advice - helping clients analyze their businesses with true clarity, raise their level of performance, achieve growth and enhance shareholder value. KPMG International's member firms have more than 100,000 professionals, including 6,800 partners, in 160 countries. KPMG's Consulting practice can be found on the web at www.kpmgconsulting.com or reached through the firm's site at www.us.kpmg.com.

     --30--KO/na*

     CONTACT:  Federal Express Corp., Memphis
               Sally Davenport, 901/395-3466
               sddavenp@fedex.com
               or
               KPMG Consulting
               Ken Neal, 201/505-8883
               kneal@kpmg.com

     KEYWORD:  TENNESSEE
     INDUSTRY KEYWORD:  TRANSPORTATION AIRLINES MARKETING AGREEMENT
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