Fedex is the leading provider of supply chain management services to corporate customers. Fedex started in 1971, to facilitate overnight delivery of document through airfreight system directly to the customers at affordable costs.
Fedex over a period of years differentiated itself by having state of the art infrastructures with technologically advanced automation that will ship the goods from supplier to the end customer in a shorter period of time. Fedex offered variety of services including warehouse management, inventory management, transportation and logistics managements to name a few.
Fedex goal is to offer to customize supply chain services to corporate customers to help them reduce costs, improve customer satisfaction.
a. Emergence of Fedex as the leading global provider of supply chain management services to corporate customers is attributed largely to the state of the art infrastructure facilities and its vast network spread across the world. Explain how FedEx’s infrastructure facilities and network facilitated better management of customer’s supply chain.
Fedex offered customer specific supply chain management services to their corporate customers. As the requirement varies from one customer to another it was absolute necessary to have the right infrastructure and network to facilitate better management at the customer side. The success ingredients of Fedex can be broadly classified to the following three:
1. Infrastructure facilities to help handle customer processes 2. Technology supporting to stream line operations
3. Network to interface between the customers (Shipper and Receiver) and Backend
1. Infrastructure facilities to help handle customer processes Fedex infrastructure consists of operations hub at Memphis, a 644 fleet of aircrafts and 48000 vehicles for land transport. The operations at Memphis hub is streamlined with fixed time for unloading the aircraft, sorting and then reloading to the destination aircraft. Every night the process will start by 10:30 pm with 150-160 aircrafts landing in the Memphis airport and within 3 hours all the processes are completed the aircrafts took off to the destination. If there are any delays the operations teams were to explain the reasons and proper measures to be taken. After unloading, the packages go through series of steps through which they sorted, and dispatched to respective destinations. These sorting are automated on conveyor belts equipped with infrared scanning. The scanning information is integrated directly integrated with Fedex website so that customers can track the location of their shipments. By implementing and executing consistent processes, Fedex was able to deliver the packages rightly with less delivery time and costs.
2. Technology supporting to stream line operations
Using variety of technology tools to streamline operations in Fedex complements infrastructure. Fedex used Customer Operations Service Master Online System (COSMOS) to track packages. This system used by employees, customers to track the shipments online. This is the backbone of many other systems to handle millions of transactions and smooth operation execution.
To ensure safety of the packages and timely delivery for the customers, Global Operation Control Centre (GOCC) was used to trace trucks and aircraft movements. In addition, GOCC provided weather information to trucks and aircrafts so that accidents are avoided and reliable services are provided
Digitally Assisted Dispatch System (DADS) provided information to the delivery and pickup agents’ information about the exact delivery and pickup locations. It helped them to plan their route and ensured shorter time duration for the activity
Automated Sorting Tracking Route Aid (ASTRA) provided accurate information of delivery information so that it can be sorted and dispatched to the right...