Express Man

Clifton Chua delivers the goods for FedEx

By Maricar T. Manuzon

FedEx Express managing director for Thailand, Indochina, and the Philippines Clifton Chua believes an effective leader must be able to adopt diverse leadership styles for various situations

FedEx’s Clifton Chua is a man in a hurry. In his early thirties, he already heads—as managing director—the world’s largest express transportation company’s operations in Thailand, Indochina, and the Philippines.

Based in Bangkok, where he is backed by a staff of 400, Chua has been in his current role since June 2003. Prior to this, Chua served as managing director for FedEx Express Singapore and Indonesia, during which time he oversaw major service improvements for FedEx in both locations. These included the development of premier facilities, such as the high-tech Changi South package sorting facility in Singapore.

Recently, Philippine Business interviewed Clifton Chua about the express transportation service industry as well as his career in the fast lane:

What are the trends in the express transportation industry in Asia and the Philippines?
Such factors as the boom in global Internet sales and the emerging middle class in China are providing unique opportunities for FedEx to leverage its strengths. There are, specifically, four trends that FedEx is uniquely able to leverage: the increased manufacturing of high-tech and high value-added goods, like iPods or prescription drugs, that are small, lightweight, and easy to transport; the globalization of trade for these items; people’s increased ability to sell and source goods around the world as a result of the Internet; and the continuing adoption of fast-cycle logistics and distribution.

Let us take the case of Pentax. Speed to market is critical for high-value products like Pentax digital and film cameras. Working together with FedEx, Japan’s Pentax Corporation was able to reduce its factory-to-retailer lead time by half in the U.S., Canada, and the Caribbean.

Pentax products bound for those markets used to take up to 10 days to move from factories across Asia to a central warehouse in Colorado and then on to retailers. This has changed after Pentax worked with FedEx to rethink its strategy. The result is an entirely new Pentax direct distribution system, with products moving from regional manufacturing to the FedEx Asia-Pacific Hub in Subic Bay. Inside the onsite Pentax operation, order data is received from Pentax information systems and individual shipments are prepared for direct delivery to retailers, using FedEx International Priority Direct Distribution.

The lean, efficient distribution model is not only five days faster but less costly, too, since Pentax saves on total inventory expense. Pentax created an entirely new business model that allowed it to maximize sales potential and minimize long-term inventory levels. Fortunately, FedEx Express’s global air, ground, and information technology networks are ideally suited to help Pentax speed up the delivery of its products.

Do you also have specific solutions for small and medium enterprises?
Yes, FedEx has a range of products and tools to help small- and medium-sized enterprises in the Philippines conduct their business with confidence. We have online tools and shipping products that are uniquely designed and priced to improve business productivity and operational efficiency of these SMEs. Examples of these online tools on www.fedex.com are FedEx Global Trade Manager, FedEx InSight, Global Transit Time, and FedEx Ship Manager.

FedEx Global Trade Manager is a free Internet-based service that automates the documentation process for FedEx International shipments. FedEx InSight is the first web-based application showing critical shipment information as events occur for FedEx Express and, in the U.S., FedEx Ground shipments. Global Transit Time is an online global tool that helps customers make shipping decisions based on transit-time results, where customers can visit fedex.com to calculate the delivery time between two or multiple destinations within the FedEx network. FedEx Ship Manager allows web-based shipping, tracking and tracing, scheduling of package pickups, access to transit-time information, ordering of supplies, or, in some locations, getting a quote for the FedEx service a customer may require.

How do you manage being based in Bangkok and managing operations in the Philippines and Indochina at the same time?
Fortunately for me, I have a team of talented and committed managers and employees in the three countries that I have responsibility for. The day-to-day operational matters are handled by the country managers and senior operations managers. It never fails to amaze me what our FedEx employees undertake on a day-to-day basis to delight our customers. This spirit is aptly described as the “We Live To Deliver” spirit.

Also, if you look across FedEx’s business across the globe, I’d say that all of our diverse markets are bound by one corporate philosophy, succinctly described as People-Service-Profit, or PSP in short. PSP simply means that we focus on taking care of our people to enable them to deliver the best service to our customers, and thus ensure profitable operations for the company. This philosophy has been a major factor in our success.

How does the cultural diversity in the FedEx workforce affect operations?
At FedEx, diversity is more than just about nationality or ethnic backgrounds. Rather, we make a continuing effort to celebrate the unique nature of each person while recognizing the things we all share. We put diversity to work across the world to help FedEx stand out as an industry leader. The different cultures we represent, our different faces, the different perspectives each of us brings all come together to make us stronger and more flexible in the global marketplace.

The boom in global Internet sales and the emerging middle class in China are providing unique opportunities for FedEx to leverage its strengths

How would you describe your management style?
I do not believe there is any “right” or a “best” management style. An effective leader must be able to adopt diverse leadership styles for various situations. Above all, a good leader needs to possess a very important attribute—empathy, or what is commonly called EQ these days—for him to be able to command respect from his followers.

What are your recent favorite business and management books?
Winning by Jack Welch. What’s a better way to learn than from the real life experiences of a tried and tested business leader?

Good to Great by Jim Collins. In it, the author highlighted what he called the “Level 5 Executive,” defined as one who builds enduring greatness—be it in business, community, or personal life—through a paradoxical blend of personal humility and professional will. The book has empirically—not ideologically—established that such leaders—not the larger-than-life, “charismatic” celebrity leaders—are the essential common thread that led organizations from being good to attaining sustained greatness.

First, Break All the Rules by Marcus Buckingham and Curt Coffman. This book challenges much of conventional management wisdom, based on empirical evidence.

Who inspire you to be as driven and hardworking as you are?
I am surrounded by three gorgeous ladies in my life. Gillian, my wife, has given me her invaluable support and has been a pillar of strength in my life. Bianca and Anya, my two beautiful daughters, are the pride and joy in our lives. Daughters are the greatest gift from God. They have a special place in a father’s heart. It never fails to amaze me how much we can see ourselves in our children. They serve as a constant motivation for me to be a good role model who will leave them a worthy legacy.