...Six Components of FedEx Corporation Supply Chain Six Components of FedEx Corporation Supply Chain This project paper will describe six components of the FedEx’s supply chain. Also this paper will examine the potential problems related to each of the components and describe and explain the approaches of the organization for solving the problems. Let’s start with the background of the company. FedEx is led by Corporation, that provides strategic direction and financial reporting to the operating companies which compete under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Home Delivery, FedEx Office, FedEx Supply Chain Solutions and FedEx Services these are six supply chain of the main FedEx brand. FedEx started in 1971, when its founder Frederick W. Smith had idea for airfreight system that would facilitate quick overnight delivery of documents directly to customers. To make his ideas work, Smith decided to start his own company. In March 1973, FedEx moved its airline operations to Memphis, Tennessee, US. On April 1, 1973, FedEx started full time operations with a network, opened up in 25 cities in the US. This had begun the air/ground express industry. FedEx Express is a cargo airline based in Memphis, Tennessee. In terms of freight tons flown it is the largest in the world and the world's fourth largest in terms of fleet size. It is one of the supply chain segments of FedEx Corporation. It delivers packages and freight to more than 375 destinations in...
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... TITLE | PAGE | 1. Background of Fedex | 2 | 2.1. Fedex History | 2 | 2.2. Fedex Malaysia | 3 | 2.3. Fedex Supply Chain | 4 | 2. Product Offered by Fedex | 5 - 10 | 3. Services Offered by Fedex | 11 - 12 | 4. Swot Analysis of Fedex | 13 - 15 | 5. Conclusion | 16 - 17 | 6. References | 18 | 7. Appendix | 19 - 20 | 1. BACKGROUND OF THE COMPANY 2.1. FedEx History FedEx Corporation is the short name originally from Federal Express Corporation. FedEx is one of an American involve in global courier delivery services industry. It was founded as a company in 1973 as Federal Express Corporation. The idea of integration delivery airplanes and trucks into one delivery system founded by Frederick W. Smith. FedEx Company headquartered in Memphis, Tennessee United States. A city selected for its geographical centre to the original target market cities for small packages. In addition, the Memphis weather was excellent and rarely caused closures at Memphis International Airport. The company began its operation in April 1973 which are 14 small aircraft from Memphis International Airport were launched. Federal Express delivered 186 packages to 25 US cities. In 1998, FDX Corporation was founded in January 1998 with the acquisition of Caliber System Inc. by Federal Express which is roadway services. Extension by an acquisition of Caliber, FedEx start to offer others services such as...
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...FedEx Critical Inventory Logistics In Action: Wincor Nixdorf Before FedEx Critical Inventory Logistics, Wincor Nixdorf had a service supply chain with unmanned storage facilities and limited visibility to parts inventory. Now the company has a cost-effective solution with real-time visibility to all locations that stock a needed part, automated delivery time and cost estimates for transportation from each location, and robust command-and-control features so technicians can count on delivery of repair parts whenever and wherever they need them. Wincor Nixdorf understands that service after the sale is critical. When Wincor Nixdorf began requesting proposals for a service supply chain solutions provider, it was conducting inventory management using a manual process with little formal visibility to parts inventory. It managed service parts inventory in unmanned storage facilities, relying on manual processes and technicians to order, stock and transport needed parts. Matthias Thiele, Director of Logistics and Operations for Wincor Nixdorf, admits the company’s supply chain solution wasn’t ideal. “The former process was steered manually, and the visibility of the material flow was limited,” said Thiele. “The process meant we needed a higher spare part stock level in order to meet the customer service level agreements. If we don’t meet our agreements, we are penalised.” FedEx helped Wincor Nixdorf optimise its service supply chain. Wincor Nixdorf wanted to get its new service supply...
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...section vi cases 1 2 3 4 5 6 7 8 9 10 11 12 FedEx Corporation Honda Motors Virgin Toyoko Inn Group PowerGen Kao Corporation Continental Caterpillar Metro Grupo Elektra Lego Mindstorms Shell and Billiton 13 14 15 16 17 18 LoJack and Micrologic Proteome Systems Swatch Ducati Chicago Museum Trilogy University 647 663 680 702 709 721 738 755 773 778 795 803 818 827 847 854 872 883 892 901 909 928 19A Cap Gemini Sogeti 19B Cap Gemini Sogeti 20 21 22 Kentucky Fried Chicken Cirque du Soleil Nike and the University of Oregon 933 case 1 FedEx Corporation: Structural transformation through e-business By Ali F. Farhoomand and Pauline Ng1 Case 1 [FedEx] has built superior physical, virtual and people networks not just to prepare for change, but to shape change on a global scale: to change the way we all connect with each other in the new Network Economy. (1999 Annual Report) [FedEx] is not only reorganizing its internal operations around a more flexible network computing architecture, but it’s also pulling-in and in many cases locking-in customers with an unprecedented level of technological integration. (Janah and Wilder, 1997) its inception 1973, Federal Express Since express deliveryincompanytransformed logisCorporation (‘FedEx’) had itself from an to a global tics and supply-chain management company. Over the years, the Company had invested heavily in IT systems, and with the launch of the Internet in 1994, the potential for further integration of...
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...FedEx Corp.: Structural Transformation Through e-Business Pauling Ng and Ali R Farhoomand The University of Hong Kong FedEx has built superior physical, virtual, and people networks not just to prepare for change, but to shape change on a global scale. to change the way we all connect with each other in the new Network Economy. FedEx is not only reorganizing its internal operations around a more flexible network computing architecture, but it's also pulling-in and in many cases locking-in customers with an unprecedented level of technological integration. Since its inception in 1973, Federal Express Corporation had transformed itself from an express delivery company to a global logistics and supply-chain management company. Over the years, the Company had invested heavily in IT systems, and with the launch of the Internet in 1994, the potential for further integration of systems to provide services throughout its customers' supply-chains became enormous. With all the investment in the systems infrastructure over the years and the US$88 million acquisition of Caliber Systems, Inc., in 1998, the Company had built a powerful technical architecture that had the potential to pioneer in Internet commerce. However despite having all the ingredients for the makings of a successful e-business, the Company's logistics and supply-chain operations were struggling to shine through the historical image of the Company as simply an express delivery business. Furthermore competition in the...
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...r p' FedEx Corporation: Structural transformation through e-business By Ali F. Farhoomand and Pauline Ngl [FedExI has built superior physical, virtual and people networks not just to prepare for change, but to shape change on a global scale: to change the way we all connect with each other in the new Network Economy. (1999 Annual Report) [FedExl is not only reorganizing its internal operations around a more flexible network computing architecture, but it's also pulling-in and in many cases locking-in customers with an unprecedented level of technological integration. (Janah and Wilder, 1997) ince its inception in 1973, Federal Express Corporation ('FedEx') had transformed itself from an express delivery company to a globallogistics and supply-chain management company. Over the years, the Company had invested heavily in IT systems, and with the launch of the Internet in 1994, the potential for further integration of systems to provide services throughout its customers' supplychains became enormous. With all the investment in the systems infrastructure over the years and the US$88 million acqrtisition of Caliber Systems, Inc., in 1998, the Company had built a powerful technical architecture that had the potential to pioneer in Internet commerce. However, despite having all the ingredients for the maltings of a successful e-business, the Company's logistics and supplychain operations were struggling to shine through the historical image of the Company as simply an express...
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...transportation to offer a comprehensive set of logistics offerings. Leveraged 3PLs use assets of other firms. Non-leveraged 3PLs use assets belonging solely to the parent firm. Examples: FedEx Logistics, UPS Logistics Financial Based – Provide freight payment and auditing, cost accounting and control, and tools for monitoring, booking, tracking, tracing, and managing inventory. – Examples: Cass Information Systems, CTC, GE Information Services, FleetBoston Types of 3PL Providers • Warehouse/Distribution Based – Many have former warehouse and/or distribution experience. – Examples: Exel, Caterpillar Logistics, IBM • Forwarder Based – Very independent middlemen with forwarder roles. – Non-asset owners that provide a wide range of logistics services. – Examples: AEI Types of 3PL Providers • Information Based – Significant growth and development in this category of Internet-based, business-to-business, electronic markets for transportation and logistics service Levels of Outsourcing • Transactional Outsourcing: Based on transactions, with no long term contracts and no bonding between the 3PL and the outsourcing company. • Tactical Outsourcing: Outsourcing on a long term basis with negotiated contacts and integrated IT systems to facilitate free information flow and create supply chain visibility. • Strategic Outsourcing: Based on long-term relationships with successful...
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...History The modern air and ground express industry was pioneered with the founding of Federal Express in 1971; the corporation was created in 1998 as FDX Corporation and became FedEx Corporation in January 2000. Headquarters Memphis, Tenn. Principal Officers Frederick W. Smith, Chairman, President and CEO Robert B. Carter, Executive Vice President, FedEx Information Services and CIO T. Michael Glenn, Executive Vice President, Market Development and Corporate Communications Alan B. Graf Jr., Executive Vice President and CFO Christine P. Richards, Executive Vice President, General Counsel and Secretary NYSE Listing FDX (since December 1978) FY09 Revenue (Consolidated Information for all FedEx Companies) $35.5 billion Workforce More than 275,000 team members worldwide Average Daily Volume More than 7.5 million shipments for express, ground, freight and expedited delivery services Service Area More than 220 countries and territories, including every address in the United States fedex.com Over 20 million unique visitors monthly; more than 5.5 million package tracking requests daily and 19 million packages shipped via FedEx Ship Manager monthly. Operating Facilities Express: 1,083 stations; 10 air express hubs Ground: 32 ground hubs; over 500 pickup/delivery terminals Freight: Approximately 470 service centers Office: Approximately 2,000 locations Air...
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...The Success of FedEx vs. United Parcel Service (UPS) Executive Summary In today’s ever advancing world, shipping services are an essential part of our everyday lives. The two largest companies’ in the shipping industry today are Federal Express Corporation (FedEx) and the United Parcel Service (UPS). FedEx is an international company that believes in quality customer service. With its consistently high quality and innovative services, FedEx has achieved a relatively high market share in the global package delivery market. FedEx is currently the global leader in the express package delivery market, and it offers delivery services in over 220 countries and territories. The biggest competition that FedEx faces today is UPS. UPS is the largest package delivery company in the world, and it offers services in over 215 countries and territories. With its consistently low priced shipping offerings, UPS has earned a reputation as the low-priced market leader. Attaining a competitive advantage in the package delivery market is a challenging task, but UPS and FedEx have found innovative ways to accomplish this objective. Although these companies essentially offer the same delivery options, each of them has carved out its own market niche within the package delivery market. Table of Contents Introduction 4 Federal Express (FedEx) 6 United Parcel Service (UPS) 6 COMPETITIVE ANALYSIS 7 United Parcel Service (UPS) 8 Threat of Substitute Product 10 Delivery Confirmation...
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...business-level strategy that gives the company a competitive advantage over its rivals. We are also asked to examine the manner in which overall global competition may impact the new business strategy. And, finally, we are asked to suggest one significant way that Federal Express may confront its global competition. Senior management at FedEx must appreciate the need for adding new value to their organization if they intend for FedEx to remain viable. Senior management needs to be committed to the creation of new internal capabilities for FedEx growth. And management must be ready for strategy innovation and the exploration of FedEx’s strategic frontier. Innovative new business opportunities found on the strategic frontier can provide forward-thinking leadership with the entrepreneurial growth ideas FedEx needs. FedEx does not need decades of R&D expenditures to develop new business ideas and opportunities. All FedEx really needs is an understanding of its customer’s needs. If FedEx is really in touch with the needs of the customer, then the organization will be closer to deciding where on the strategic frontier meaningful value is to be found. Once FedEx reaches that point then senior management will need the conviction and motivation to create a new business model to address those needs. Strategy innovation can take the form of new products and...
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...The corporate strategy of fedex corporation Executive Summary This analysis of the corporate strategy of FedEx Corporation relates to three specific issues in the corporate strategy case. The first issue is a critical analysis of the global express transportation and logistics industry. The second issue discusses about the mergers and acquisitions in transportation and logistics industry. The final issue is a critical review of the performance of FedEx in the events leading to the January 2000 reorganisation. In the first section, the global express transportation and logistics industry is an attractive sector based on the fundamentals of the sector given in the five forces analysis using Porter's framework. There are large barriers to entry, there are minimal substitutes that exist, industry is relatively disciplined, and the power of buyers and suppliers are mixed. FedEx is well placed in the sector given its core competencies and dynamic capabilities relating to its management and the functional areas of marketing, human resources and information technology and systems. In the second section, gives a brief knowledge about the benefits and limitations of merger and acquisition strategies in this industry. This also describes how effective was the 1998 Caliber System acquisition and where did it led the company do in its further years. In the final section, it is noted that FedEx performed poorly within its sector and given its capabilities, the firm was expected to have...
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...IS used in FDX What is information systems: Information system is defined by different ways but they are all in the same field. Information system is a collection of hardware, software, data, people and procedures that are designed to generate information that supports the day-to-day, short-range, and long-range activities of users in an organization. Information system is a very wide field that is divided in different types, to fulfill business’s variety of requirements for information, which are: Executive Support Systems, Management Information Systems, Decision Support Systems, Knowledge Management Systems, Transaction Processing Systems, and Office Automation Systems. Firstly, the Executive Support Systems ("ESS") is designed to help senior management make strategic decisions. It gathers analyses and summarizes the key internal and external information used in the business. Secondly, Management Information Systems ("MIS") is mainly concerned with internal sources of information. MIS usually take data from the transaction processing systems and summarize it into a series of management reports. Thirdly, Decision Support Systems ("DSS") are specifically designed to help management make decisions in situations where there is uncertainty about the possible outcomes of those decisions. DSS comprise tools and techniques to help gather relevant information and analyze the options and alternatives. DSS often involves use of complex spreadsheet and databases to create...
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...landscape of corporate America. As corporations fight for scarce resources, and savvy consumers equipped with greater knowledge through the World Wide Web gain bargaining power, the necessity for big business to improve supply chain management procedures has intensified. The explosive growth of emerging markets like China and India creates both opportunities and challenges in transporting goods and services. The businesses that can leverage technological advances are in a position to garner market share and add value to their shareholders. FedEx has become a world leader in the parcel delivery business. The name FedEx evokes thoughts of getting packages to customers the next day. FedEx now is used as a verb to tell customers that a shipment will be sent so that it is received the next day. Delivering a product on-schedule is the result of multiple business processes working seamlessly to create a Value Chain that yields a firm greater profit over costs (Dess, Lumpkin, & Eisner, 2007). A primary activity of the Value Chain is Supply Chain Management (SCM). Supply Chain Management is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer ((2006). Supply Chain Management Retrieved April 24, 2007, from http://searchcio.techtarget.com/sDefinition/0,,sid19_gci214546,00.html ) Running the full spectrum of products and services, companies rely on sound SCM procedures and techniques...
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...Second Component Value Chain Con-way Inc. Primary Activities: Inbound logistics Under inbound logistics, Menlo Worldwide Logistics is the expert. They handle all of the receiving, warehousing, and inventory control of input materials. Menlo serves industries like the automotive, high-tech, retail/consumer, chemical, government, and industrial goods. They work with companies one on one to set up transportation management, warehouse management, value-added services, supply chain solutions and information technology. They achieve these results with shorter implementation periods and lower project costs than a customer company could achieve. Compared to their competition, Con-way Inc. has the competitive advantage because Menlo Worldwide. UPS and FedEx inbound logistics would consist of their local stores that receive and store inventory of packages that customers can come pick up and drop off. Besides their local stores, they both only have a few regional warehouses that they use for bigger packages and delivers. This is where Con-way exceeds. Because of Menlo, Con-way goes further than just storing and receiving packages and deliveries. They actually help manage transportation and warehousing with business which is their main customers. Operations Con-way Inc. operations are comprised of three business segments. That is Con-way Freight, Menlo Worldwide Logistics and Con-way Truckload. Con-way’s major operations include less than truckload services, full truckload services...
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...The case study looks at one on the world’s most successful adopters of a new business model that transformed the airfreight and package delivery sectors worldwide. But the advent of the internet in the mid-1990s meant that the FedEx business model had to change or the company would decline. This is also the story of how it rose to that challenge. l l l In 1965, Yale University undergraduate Frederick W. Smith wrote a term paper about the passenger route systems used by most airfreight shippers, which he viewed as economically inadequate. Smith wrote of the need for shippers to have a system designed specifically for airfreight that could accommodate time-sensitive shipments such as medicines, computer parts and electronics. In August of 1971 following a stint in the military, Smith bought a controlling interest in Arkansas Aviation Sales, located in Little Rock. While operating his new firm, Smith identified the tremendous difficulty in getting packages and other airfreight delivered within one to two days. This dilemma motivated him to undertake research on how to resolve the inefficient distribution system. In an interview with Fortune Small Business in 2002 he explained his business model for solving the problem: My solution was to create a delivery system that operates essentially like a bank-clearing system does. Put all points on a network and connect them through a central hub. If you take any individual transaction, that kind of system seems...
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