FedEx: The Supply Chain Management Solutions Provider

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Case Details:

Case Code : OPER029
Case Length : 17 Pages
Period : 1971 - 2003
Organization : FedEx
Pub Date : 2004
Teaching Note :Not Available
Countries : USA
Industry : Logistics

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Managing the Customers' Supply Chain

FUJITSU Corporation

In the late 1990s, California headquartered Fujitsu PC (FPC), a subsidiary of Fujitsu Corporation of Japan, was encountering several problems relating to inventory mismanagement and non-adherence to time schedules for delivering its notebook computers. In spite of having sufficient inventory, FPC took ten days to deliver a notebook computer to the customers in the US, whereas its competitors were delivering it in lesser time.

FPC's assembling facility was located in Portland, US. The company received components from Japan, which were shipped to the US by Nippon Express . Once the components reached US, they were brought by air to the Portland facility by Circle Air Freight (CAF)...

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

The components were assembled at the facility and then the notebook computers were shipped to various states/cities in the US by CAF. FPC was facing problems mainly due to the lack of co-ordination between the two freight forwarders (Nippon Express & CAF). Shipments from Japan, in few cases, even went to the wrong place. To add to the problem, the Portland facility was not functioning at an optimum efficiency and was not strategically located to serve the 48 states in the US. In its efforts to overcome these problems, in April 1999, FPC decided to avail FedEx's third party logistics services...

The New Service

For the fiscal year 2002-03, FedEx reported revenues of $22.5 billion and a net income of $830 million. The company keeps on adding new and innovative services to its supply chain management services portfolio. One of the recent additions is the 'consolidated returns' service under the returns management services category. Launched in June 2003, the 'consolidated returns' service primarily targeted at web-retailers and catalogers, to enable them to manage their returns better. In order to use this service, the retailers/catalogers are required to pay a subscription fee every month...


Exhibit I: Performance of FSCS Vis-A-Vis its Competitors
Exhibit Ii: Fedex Group Companies
Exhibit Iii: Fedex's Hub and-Spoke Model
Exhibit Iv: Fedex's Worldwide Sorting and Handling Facilities
Exhibit V: Fedex – Transforming Cisco's Supply Chain

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