Fred Smith

Today, a lot of people take overnight delivery and express service for granted; but it was not always the case. When Frederick Wallace first thought of delivering packages overnight, the idea was revolutionary. It spawned the Federal Express Corporation, commonly shortened to FedEx. Smith provided an alternative way to deliver mail, products, checks, and other packages quickly. Almost single-handedly, he changed the way people did business.

The idea first came to Fred Smith while he was studying at Yale University. He submitted a paper for an economics class outlining his idea of providing overnight delivery for time-sensitive goods such as medical replacement parts and automotive components to major US cities. Looking back, it seems obvious that there is a market for it. However, Smith’s professor was not impressed and gave the paper a “C” grade.

Fortunately, the idea stayed with him and he bought a controlling interest in Ark Aviation Sales to turn it into reality. During the first two years of FedEx’s operation, the company made losses that would have turned anyone else from the venture. Smith persevered and in less than a decade, the company was stable enough to sell shares in the New York Stock Exchange.

It also became the first American company to earn ten billion dollars. The firm now operates in more than two hundred countries and uses six hundred aircrafts and 46,000 vehicles. Over the years, competitors like DHL were born but FedEx remains different. It is set apart by its philosophy of people, service, and profit (in that order). The vision of one man has definitely made a lot of difference in the lives of millions.