Case Study

Topics: Management, Business, FedEx Pages: 4 (551 words) Published: May 25, 2014


Week One Assignment
George Cagle
ITT Tech Online
MG518 - Operations and Process Management
John Theodore
May 04, 2014
Week One Assignment

FedEx Operations Management Technique
FedEx’s traditional ways of doing things were changing. Originally, FedEx was a company that provided quick service faster than any competition for a premium price. Price was no object to most companies because the cost of doing business quickly far outweighed not getting it there in time. Bids on new business needed to be there overnight! This brought in more business to most organizations and so the cost was no so important. As times changed and some companies fell on harder times, they could not afford the exhorbinate amount of money it cost to send items overnight. Organizations started to look for new ways to do this. The Internet was one of the saving elements of many corporations. They could send documents by e-mail to customers and even pre-bids allowing the company to send the original with a three-day scope. This allowed for cheaper postage and less stress. What more could companies want? FedEx started to feel the pressure and what had once been quick and reliable was fading fast. FedEx realized they would not be able to maneuver their typical operations management techniques they had been used to (Wiley Media, 2011). Originally, FedEx got the inputs and the transformation process was implemented. The inputs became outputs and fulfilled the organizations plans and goals. This had to change. Instead of concentrating on the overnight flights of packages, FedEx decided to look more locally as to what to do. They became concentrated on organizations such as Amazon.com who is doing a tremendous business and can afford to pay a large amount overall but a cheaper amount individually. FedEx knew they have to revamp their operations management strategy into what would be low-cost operations and dependable delivery services...

References: Wiley Media. (2011). Introduction to Operations Management. Retrieved from http://media.wiley.com/product_data/excerpt/48/04713472/0471347248-3.pdf
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