...The case study of 3PL: FedEx Supply Chain Solution Sharon Kuo Silver Lu RA7951021 RA7951055 Jon Dickerson RA6967118 Content Introduction_3PL Current 3PL market A case: FedEx Supply Chain Solution Introduction and express service Logistics Distribution Centre Operations Integrated Information Technology Introduction _3PL Definition Relationship between a shipper and third party with customized offerings Encompasses a broader number of service functions by a long-term and mutually beneficial relationship. Typically specialize in integrated warehousing and transportation services (By Alfrick and Calkins, 1994 and P. Murphy and R. Point, 2000). Main goals of 3PL Improve service levels Reduce costs Four categories of 3PL provider High Service developer Offers advanced value-added services such as: tracking and tracing, cross-docking, specific packaging, or providing a unique security system. Focus on IT and Economies of Scale Customer developer Highest level of 3PL can attain. It integrates itself with few customer and takes over their entire logistics function with extensive and detailed tasks Complexity of Service Standard 3PL provider most basic form of a 3PL provider and performing basic functions like pick and pack, warehousing, and distribution business Customer adapter Upon customer’s request and essentially takes over com-plete control of the company’s logistics activities. It Improves the logistics dramatically, but do not develop...
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...FEDEX TOWARDS PALM OIL INDUSTRY Core competency identified to be implemented in palm oil industry is Fedex supply chain management and its tracking device CORE COMPETENCY its infrastructure which is hard to imitate- a world wide network of planes trucks ships and hubs need a huge amount of capital. its dedication to innovation and embracing new technologies. – eg, them being the first logistic company to embrace the www as a tool to reach out to customers {attitude}. Like their wireless solution for faster shipping time, allowing customers to track their packages while travelling etc. Plus supply chain management and tracking capabilities. TARGET: GREEN INDUSTRY Solar+ biodiesel = substitutes for fossil burning Why green energy industry? In this presentation we will be focusing on 2 alternatives. Solar and bio-diesel. In support to the relevance of green energy, according to Eye For Transport, surveying 250 north American supply chain executives. The green transportation &logistics report revealed financial(ROI) and public relations are the driving force. 75% of a company‟s carbon print come from logistic and transportation. 6% respondents designate green issues as unimportant While 69% agree that green issues are important to their transport and logistics processes 9% find it as their No.1 priority. Total of 78% find relevance towards green transportation and logistics. Now. It is found greening their T&L process is fundamentally...
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...Summary FedEx Corp. was established in 1973. It was developed from an express delivery company to a global logistics and supply-chain management company. It provides businesses and customers with a wide portfolio of transportation, e-commerce and business services. In order to have successful e-commerce, company has invested a lot on IT development and system infrastructure over the years, such as applying some computer software systems. Apart from this, acquisition of Caliber Systems, Inc. provided FedEx an elaborate logistics operation concentrating mainly on high-priced goods industries. The following diagram shows some important events of FedEx Corp. In 1994, it launched a website that is the first transportation company to do so. In 1998, it started to stress on IT and expand its operation. However, there was a downturn in financial in 1999. In 2000, reorganization occured. Project objective Reorganization causes great impacts on the development of company. As a result, it is a good opportunity for us to study it. The objective of our project is to investigate whether reorganization is successful or not based on some analysis. Overview of reorganization The diagram shows the framework of FedEx Corp. after reorganization. Before reorganization, there are multiple brands under FDX. After reorganization, there’s a single branding system leveraging the power of the FedEx. Also, it has a single expanded sales force that targets small and medium sized businesses...
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...Pumps consist of a casting and a few internal components and an electric motor * Raw pump castings that are purchased from suppliers are made of iron and shipped LTL class 60 * Many of the internal components are class 85 * ACME places orders with suppliers every day, picked, packed and shipped within two days. * Main suppliers are essentially shipping to ACME on a daily basis. * ACME suppliers provide exceptional quality but the suppliers are about 25% the size of ACME * Pump Gutts, Inc – Richmond, Virginia * Average Order Size – 1900lbs Material Valued at $17,500 * FOB, Shipping Point, Prepaid. * LTL Carriers are used for the vast majority of inbound shipments from Pump Gutts. * Fly overnight UPS or Fedex * 100 pounds each, 2 times a week $3.50 per pound. Suppliers/ Inbound Freight: Greenville, SC: * Purchase raw casting from a casting supplier. * Amalgamated Casting located in Greenville, South Carolina * Average Weight of order/shipment is approximately 5,000 LBS * ACME...
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...11.1 Logistics In both vertical and horizontal marketing systems, systematised information contributes to the efficient flow of goods and services from the point-of-origin to the point-of-consumption. This process of regulation begins with customer service and extends to the procurement, handling, and processing of resources aimed at delivering customer satisfaction. All ways in which resources are procured, handled, and processed fall within a set of activities known as logistics. Logistics is a process of systematising information to facilitate the efficient and cost-effective flows of goods and services to produce customer satisfaction. Each member in the supply chain must be involved in logistics activities. Logistics flows may begin with the supplier/manufacturer relationship, but efficient logistics activities are needed throughout the marketing channel. Relationship marketing epitomises the interac-tive process necessary to achieve customer satisfaction by maintaining a participative exchange of information with all of a firm’s channel partners. In addition, develop-ments in electronic retailing are now aimed at making this whole process more effective and efficient. The Council of Logistics Management defines logistics management as: ‘The process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods, and related information from point-of-origin to point-of-consumption for...
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...------------------------------------------------- Fedex SWOT analysis July 14th, 2010 webmaster Leave a comment Go to comments Federal Express Corporation (Fedex) was established in 1973. Since then, Fedex had become a global logistics and supply chain management. The company had invested heavily in information technology systems. It had a powerful technical architecture that had the potential to pioneer in Internet commerce. However, there are some difficulties, the company’s logistic and supply chain operations have trouble to keep up the company’s image, The transportation volume growth was slowing down because the competitive industry was too intense. In early 2000 The company announced major reorganization within the entire Fedex family. Each five subsidiary companies was to function independently but to compete collectively. In order to analyze the situation carefully an external and internal analysis of the company and industry must be done so a complete picture of the industry could be understood. External analysis: Determinants of threat of new competitors: The global express transportation and logistic industry has a very high barrier to entry because it requires enormous capital resources, economies of scale and brand identity. Large firms have a cost and performance advantage in the industry. All of the established firms had a very strong foothold in the global market as they have established brand identities. There are economies of scale in the industry:...
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...Executive Summary This report endeavors to look at FedEx from the strategic initiative point of view and how it was able to adapt to changing business environment to improve itself. While organisations the world over have come and gone a few leave a lasting footprint on the way they have moved in the particular sector. FedEx with its various innovative ideas has left lasting footprint that has forever altered the scope of service within the logistics industry. From its humble beginnings as a delivery company, it has set itself up a global logistics and business services organisation that has shaken the belief held by behemoths regarding the level of innovation and service that they can offer to the customer base. With its out-of-box approach it has made industrial leaders like UPS, DHL etc, and look like new kids in the block. The strategic initiatives that the organisation has taken during various time a frame has exemplified the leadership ability of Mr. Smith to work toward uncertainly and how to respond to them. Introduction A general assumption regarding strategy is that executives by applying a set of tools will be able to predict a future of any business clearly enough to choose a clear strategy or direction to adopt. This overall scenarios and assumptions made usually led to a layout of vision for the future with assumed precision. However, one needs to remember that when the time ahead looks uncertain this approach is at best only helpful marginally and...
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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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...Blue Nile Case Group D Monday and Wednesday 11:00-12:15 Anthony Allen, Laura Blakeman, Daniel DeMaiolo, Carla Hill, and Mason Shattuck 1 Industry Analysis: Dominant Economic Features Definition of Jewelry Retailing Industry & Nonstore Retailer Subsector According to the United States Census Bureau, the Jewelry Retailing Industry (NAICS code 448310) “comprises establishments primarily engaged in retailing one or more of the following items: (1) new jewelry (except costume jewelry); (2) new sterling and plated silverware; and (3) new watches and clocks. Also included are establishments retailing these new products in combination with lapidary work and/or repair services” (United States Census Bureau Jewelry Industry Definition, 2008). While Blue Nile competes in the larger Jewelry Retailing Industry, it also competes in the narrower Nonstore Retailers (Subsector 454) category because of the e-commerce component of the business model. The United States Census Bureau comments that “industries in the Nonstore Retailers subsector retail merchandise using methods, such as the broadcasting of infomercials, the broadcasting and publishing of direct-response advertising, the publishing of paper and electronic catalogs, door-to-door solicitation, in-home demonstration, selling from portable stalls and distribution through vending machines. Establishments in this subsector include mail-order houses, vending machine operators, home delivery sales, door-to-door sales, party...
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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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...Federal Express Corporation (Fedex) was established in 1973. Since then, Fedex had become a global logistics and supply chain management. The company had invested heavily in information technology systems. It had a powerful technical architecture that had the potential to pioneer in Internet commerce. However, there are some difficulties, the company’s logistic and supply chain operations have trouble to keep up the company’s image, The transportation volume growth was slowing down because the competitive industry was too intense. In early 2000 The company announced major reorganization within the entire Fedex family. Each five subsidiary companies was to function independently but to compete collectively. In order to analyze the situation carefully an external and internal analysis of the company and industry must be done so a complete picture of the industry could be understood. External analysis: Determinants of threat of new competitors: The global express transportation and logistic industry has a very high barrier to entry because it requires enormous capital resources, economies of scale and brand identity. We can write a Custom Research Paper on Fedex for you! Large firms have a cost and performance advantage in the industry. All of the established firms had a very strong foothold in the global market as they have established brand identities. There are economies of scale in the industry: firms have to be big enough to provide services in many countries...
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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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...Blue Nile Case Group D Monday and Wednesday 11:00-12:15 Anthony Allen, Laura Blakeman, Daniel DeMaiolo, Carla Hill, and Mason Shattuck 1 Industry Analysis: Dominant Economic Features Definition of Jewelry Retailing Industry & Nonstore Retailer Subsector According to the United States Census Bureau, the Jewelry Retailing Industry (NAICS code 448310) “comprises establishments primarily engaged in retailing one or more of the following items: (1) new jewelry (except costume jewelry); (2) new sterling and plated silverware; and (3) new watches and clocks. Also included are establishments retailing these new products in combination with lapidary work and/or repair services” (United States Census Bureau Jewelry Industry Definition, 2008). While Blue Nile competes in the larger Jewelry Retailing Industry, it also competes in the narrower Nonstore Retailers (Subsector 454) category because of the e-commerce component of the business model. The United States Census Bureau comments that “industries in the Nonstore Retailers subsector retail merchandise using methods, such as the broadcasting of infomercials, the broadcasting and publishing of direct-response advertising, the publishing of paper and electronic catalogs, door-to-door solicitation, in-home demonstration, selling from portable stalls and distribution through vending machines. Establishments in this subsector include mail-order houses, vending machine operators, home delivery sales, door-to-door sales, party...
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...Supply Chain Management Concerns BUS630/Managerial Accounting 8/22/2011 Supply Chain Management Concerns In the modern business world with an increase in technology and information-based consumers, it is no wonder why there are many issues that deal directly with supply chain management. The authors of Managerial Accounting for Managers define supply chain management as, “A management approach that coordinates business processes across companies to better serve end consumers,” (Noreen, Brewer and Garrison, 2011, p. 25). More and more consumers are increasingly trending toward a mass of buyers that crave instant gratification, whether it through technology, delivery or service. Common issues in supply chain management involve stock availability, inventory purchasing and order to delivery timeframe. Other concerns focus on the next generation of business, which involve cost effective and green supply chain, outsourcing, new technology, consumer behavior and most importantly emerging economies. With different views and theories on supply chain management it has become an increasingly important role for businesses in order to deal with these major problems that have arisen in the past few decades. Supply Chain Management Jobs Along with all of these progressively escalating concerns comes the increase for demand in the supply chain management career field. In a recent survey conducted by Supply Management, the information found backed the...
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...Global Value Chain Logistics Case Analysis Patricia West GEN 483 – GLOBAL VALUE CHAIN MANAGEMENT David Fogarty – Faculty June 9, 2008 Global Value Chain Logistics Case Analysis Laura Ashley, founded in 1953 by Bernard and Laura Ashley when they began printing textiles on the kitchen table of their London attic flat, was a specialty retailer, primarily of upscale women’s fashions, fabrics, and home furnishing products. The company was known for products that typified the tradition of English rural life. LA segmented its market in terms of customer lifestyles. As opposed to many of its competitors who targeted specific demographic or age groups, LA offered styles that would be appropriate for a customer from an early age to an older age. In 1990 LA appeared to be growing with 481 retail stores throughout the world a label that was well known. However, despite the continued success the sales went up, profits were flat, and capital employed rose out of control and Andrew Higginson felt all the problems were internal. The fundamental weaknesses in the LA supply chain were overdependence on in-house manufacturing, significant currency exposure, working capital intensity, excessive short-term dept, and rapid cash outflow. Information technology investments lagged growth and, where systems did exist, they were totally inadequate. In 1990 the LA company made changes to the supply chain using a worldwide network of third party product sources, limiting company-owned...
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