Fedex Process & Location Strategy

FedEx Process & Location Strategy
Robert J. Blair
Trident University International
OPM 300 Module 2 Session Long Project
Prof. Bowersox
14 Aug 2011
FedEx Process & Location Strategy
As with any organization it is the product or service provided that determines the strategy of the organizations process. Some organizations provide products full of flexibility and tailored to the desires of the customer by focusing on the process itself. Others offer products with less variety by allowing the customers to choose from a limited amount of prearranged options as they focus on the repetitive nature of their process. Organizations such as FedEx offer customers a process focused on the product itself and provide their customers with a quality product in a timely manner. And some organizations offer their customers a high variety of quality products in a timely manner by combining the first and last process in mass production. (Prentice Hall Inc., 2006) FedEx uses a product focused process strategy. FedEx has organized its companies based on product. For example FedEx express focuses on next day delivery packages while FedEx freight focuses on large heavy packages. FedEx processes an extremely high volume of products but the variety is limited to the size and destination of the product. FedEx is in continuous operation which allows them to maintain a high level of efficiency. The fixed cost of maintaining and operating the fleet of aircraft, trucks, labor, and equipment is high but other than fuel and similar expenses there is virtually now variable cost to mention. With exception of the pilots and a few other positions, FedEx labor force is primarily made up of employees only needing a minimum to medium skill level. (, n.d./ Prentice Hall Inc., 2006) FedEx has its corporate headquarters located in Memphis, TN. (, n.d.) This so happens to also be the city in which FedEx’s largest international distribution hub is located...
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