Operations Management at Fedex

Topics: FedEx, FedEx Express, United Parcel Service Pages: 14 (4526 words) Published: July 2, 2012

3.Literature Review7
3.1.Capacity Planning7
3.2.Employee Motivation8
3.3.Facilities location9
3.5.Quality Assurance12
5.Questionnaire Analysis13
Appendix B: Customer Survey Results18

1. Introduction

Figure 1: Regional Head Quarters of FedEx
Figure 2: FedEx Corporate Logo; courtesy www.fedex.com
FedEx Corporation, situated in US, is one of the leading supply chain management solution providers in the world. With annual revenues as high as USD33 billion, the company offers incorporated business solutions in logistics through operating collaborative companies jointly under the FedEx brand. FedEx’s group of companies includes FedEx Office, FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Supply Chain, FedEx Services and FedEx Trade Networks. Each of these operating units has its own version of the word mark in which the ‘Fed’ is always purple and the 'Ex’ is in a different color for each division and grey for the overall corporation use (as shown above). A global leader in express distribution, FedEx provides fast, dependable, time-definite delivery to more than 220 countries and territories, connecting markets that comprise more than 90 percent of the world’s gross domestic product within one to three business days.

Headquartered in Memphis, Tennessee, FedEx employees more than 280,000 employees around the world and has major regional reach in Asia, Europe Middle East, Indian Subcontinent, Africa, Latin America and North America. The above map shows the regional headquarters and the main hubs of FedEx across the world. The unique operating strategy of FedEx Corporation focuses on three levels to deliver such outstanding levels of services to its customers: * Compete collectively by positioned as one brand worldwide * Operate independently by spotlighting on independent networks to meet dissimilar customer needs. * Manage collaboratively by working together to uphold loyal relationships with employees, clientele and investors. By offering world class Supply Chain Management (SCM) services and resolving the customer’s supply chain problems with customized services suiting their specific needs, FedEx has earned a significant branding of timeliness and reliability in the highly competitive industry. 2.1. FedEx Corporate Responsibility

In addition to being leader in the delivery service marketplace, the company also plays a significant part to uphold and deliver on its corporate responsibilities. FedEx is also committed to actively supporting the communities they serve through strategic investment of their people, resources and network. FedEx’s contribution of corporate resources includes financial contributions, in-kind charitable shipping services and volunteer services by team members. Apart from community, FedEx is committed to providing global connections while minimizing their environmental impact by integrating responsible environmental practices into daily operations, to increase efficiencies and reduce waste. 2. Background

During the 1960-70’s, most of the airfreight shippers used the passenger route systems, by which the parcels were transported to their destinations using the same routes as commercial passenger planes. In 1965, a Yale University undergraduate Frederick W. Smith wrote a term paper about these passenger route systems used by most airfreight shippers, which he viewed as economically inadequate and not suitable for time-sensitive shipments such as medicines, electronics, etc. Later in 1971, Smith both controlling interests in Arkansas Aviation Sales, located in Little Rock, Ark and renamed it as Federal Express. The difficulty he faced in the delivering of packages within one to two days motivated him research on...
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