The Overnight Delivery Service That Delivered
Frederick Wallace Smith, known as Fred Smith, was born on August 11, 1944, in Marks, Mississippi, into a family with a strong entrepreneurial spirit. His father, James Frederick “Fred” Smith, founded the Toddle House restaurant chain and the Smith Motor Coach Company (later part of Greyhound Bus Lines), but Fred Jr. was only four when his father passed away. Raised by his mother, Sally Wallace Smith, and uncles, he was shaped by a childhood marked by resilience against adversity, including overcoming Legg-Calvé-Perthes disease, which affected his hip mobility.
Smith’s passion for aviation began early, learning to fly at 15. He attended Yale University, where he studied economics. It was here, in a 1965 term paper, that he first proposed the idea of an overnight delivery system, an idea that would later become FedEx. The legend goes that he received a ‘C’ on this paper, though Smith later said he couldn’t recall the exact grade.
After Yale, Smith served in the U.S. Marine Corps, including two tours in Vietnam, where he was awarded the Silver Star, the Bronze Star, and two Purple Hearts. His military experience deeply influenced his understanding of logistics, which would prove invaluable in founding Federal Express.
In 1971, with $4 million inherited from his father and additional venture capital, Smith launched Federal Express. The company’s initial operations began in 1973, with a fleet of 14 Dassault Falcon jets flying overnight to 25 cities. The early years were fraught with financial difficulties; at one critical juncture, Smith famously flew to Las Vegas with the company’s last $5,000, winning $27,000 at blackjack to keep FedEx afloat for another week.
Smith’s vision for FedEx was not just about moving packages but revolutionizing the logistics industry with a hub-and-spoke distribution model, which allowed for more efficient and reliable overnight delivery. His philosophy of “People-Service-Profit” emphasized employee welfare, customer satisfaction, and then profitability, which was reflected in FedEx’s corporate culture.
Under Smith’s leadership, FedEx expanded globally, becoming a household name and a dominant player in logistics. He served as CEO until June 2022, when he transitioned to executive chairman, with Raj Subramaniam taking over as CEO.
Beyond business, Smith has been involved in politics, notably considered for the position of U.S. Secretary of Defense during the George W. Bush administration, though health issues led him to decline. He has also been active in philanthropy, particularly supporting the Marine Corps Scholarship Foundation.
Further Reading:
https://en.wikipedia.org/wiki/Frederick_W._Smith
https://www.forbes.com/profile/fred-smith
https://www.fedex.com/en-us/about/leadership/executive-team/fred-smith.html