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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Infrastructure Facilities

In order to offer a large portfolio of supply chain services to its customers, FedEx equipped its network of group companies with the most modern and technologically advanced infrastructure facilities. The company employed the latest and most sophisticated package tracking, billing and communication systems. By the fiscal year 2002-03, FedEx was delivering 3.3 million packages from 211 countries each day through its fleet of around 643 aircrafts and 48,000 vehicles and trailers. Across its worldwide network, FedEx operated city stations and employed customer service agents, cargo handlers and couriers who picked up and delivered shipments in the stations' service areas...

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In some cities, FedEx operated World Service Centers, which were staffed storefront facilities located in high-traffic, high-density areas. Unmanned Drop Boxes (40,000 in US) provided customers the opportunity to drop packages in office buildings, shopping centers, post office, industrial parks and other strategic locations. FedEx also forged alliances with retailers to extend this customer convenience network to drop-off sites in retail stores. The Authorized Ship Centers enabled customers to drop off their shipments, purchase FedEx's services and receive services such as personalized packaging assistance. In international regions, where low package traffic made FedEx direct presence less economical, Global Service Participants were selected to complete deliveries and to pick up packages...

The Supply Chain Management Services

FedEx offered a wide range of supply chain management services to its customers. This included general services such as order fulfillment and transportation and unique ones such as customs clearance and returns management program.

FedEx customized its supply chain services according to the requirements of corporate customers as well as the industry in which its customers operated.

According to David Cunningham, FedEx's Regional Vice President South Pacific, "Customizing is absolutely essential because a solution that works for one company may not necessarily work for another. Each company has different products and different markets they do business with."...

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