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    Supply Chain Management: Fedex: Delivering The Goods

    Uploaded by

    lucy01123
    Scm presentation

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 29

    Management Development Institute - Gurgaon

    Supply Chain Management


    Case 08

    Fedex: Delivering the Goods


    SCM Case Presentation
    1
    2 3 4 5

    ID
    12P194
    12P196 12P204 12P208 12P229

    Name
    Chandrachuda Sharma Y
    Devendra Swaroop Rawat Karthik Kollipalli Kawaljeet Singh Santosh Garbham

    12P236

    Vattikutti Sameera

    Presentation Date: 30-07-2013

    Post Graduate Programme in Management


    (PGPM: 2012-14 Batch)
    Term: IV (Jun - Aug 2013)

    Dhonis Dilemma

    FedEx

    Let us see how

    solve Dhonis problem?

    Dhonis Dilemma

    Introduction Fedex growth Hub and spoke System


    FedEx

    Fedex Case
    Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements
    Agile Supply Chain
    Virtual Enterprise Internet Partnership Formation Integrated product/production systems Electronic commerce

    Fedex Journey
    1971: Frederick W. Smith bought controlling interest in Arkansas Aviation Sales.
    - Found difficulty in delivering Airfreight in 1 2 days - This dilemma took him to research on resolving the inefficient distribution system

    Trucks and Airplanes were combined into one delivery system something which was never done before.

    1973: Company started with the launch of 14 small airplanes from Memphis international Airport.
    What has really triggered the growth of FedEx is its ability to successfully implement Hub and spoke system

    1977: Air Cargo DEREGULATION allowed FedEx to use larger aircraft spurring FedEx growth

    Dhonis Dilemma

    Introduction Fedex growth


    FedEx

    Hub and Spoke System How Hub and spoke system changed the courier industry

    Hub and Spoke Model


    FedEx invented the hub and spoke model to increase its efficiency and speed.
    When in a network having n nodes we need n(n-1) connections to serve all the nodes in Freight business. However with Hub & Spoke this has reduced significantly to (n-1) connections hence improving efficiency by n times. See the clip how the flights were coming to one superhub and going from there.
    FedEx HUB AND SPOKE MODEL Source : Wikipedia

    Hub and Spoke Model - FedEx

    Dhonis Dilemma

    Introduction

    FedEx

    Hub and Spoke System

    Integrating Technology Wifi, Bluetooth Packaging and Scanning Powerpad, DigitalPen

    Integrating Technology
    COSMOS: Real-time package tracking COSMOS (Customer Operations Service Master On-line System) is a computerized package tracking system that monitors every phase of the delivery cycle at Federal Express.

    Ever since FedEx adopted Internet technology, it has currently integrated Wireless, Bluetooth Solutions and GPRS.
    FedExs website allows its customers and business partners to have access to information regarding shipment process, locations, tracking, freight services, and expedited services.

    Microsoft PowerPad, Wireless Solutions & Bluetooth


    FedEx uses wireless data collection devices The FedEx PowerPad is a Microsoft Windows-Powered Pocket PC that can scan barcodes on each parcel and RFID tags to determine the location and status of the shipments. PowerPad immediately uploads information such as signatures, proof of delivery, and time stamp into the FedEx network,Cosmos. Powerpad can acces real time information about other packages and weather and allows them to answer questions.

    Powerpad and GPRS


    Powerpad communicates with the printers on the couriers belt to print barcode labels for the packages. Powerpad uses the General Packet Radio Service (GPRS) network operated by mobile phone companies and bluetooth to allow the couriers direct access to Cosmos.
    Digital data can be sent via general packet radio service (GPRS) to another mobile phone, PC, personal digital assistant (PDA), fax machine or other information bank.

    Digital Pen

    FedEx also uses a digital pen that incorporates a wireless transceiver and infrared camera that takes images of user handwriting patterns.

    This provides security and proof of a users inputted information and is immediately transmitted in real time.

    Dhonis Dilemma

    Introduction

    FedEx

    Hub and Spoke System

    RFID Scanning and Sorting Velcro Wristband RFID Video

    Integrating Technology Wifi, Bluetooth Packaging and Scanning Powerpad, DigitalPen

    Radio Frequency Identification (RFID)


    FedEx has been using RFID technology since 1999.

    Smart tags on packages and envelopes


    When trucks enter or leave the FedEx hub, all of the tracking information of packages is uploaded by the RFID system.

    They are also monitoring temperature and humidity inside packages.

    Velcro Wristband RFID


    FedEx uses an automatic keyless entry and ignition system. The wristband offers FedExs delivery employee a handsfree vehicle access rather than having to scramble around to find keys while holding customer packages. The wristband is beneficial to FedEx because it provides efficiency for the couriers to get products out to their customers without difficulty.

    Dhonis Dilemma

    Introduction

    FedEx
    Competition and Sandwich strategy

    Hub and Spoke System

    Segmentation of Customers Value Proposition to customers RFID Scanning and Sorting Velcro Wristband RFID Video

    Integrating Technology

    Competition and Sandwich Strategy


    US postal service launched its product Express Mail overnight delivery priced at $8.95 FedEx in response re - segmented its customers into Priority and Standard by defining precision in delivery not only in terms of days but in terms of time as well Priority priced at $13 and Standard at $9
    FedEx do not have to send separate delivery truck for the same destination: a standard delivery is about to get priority delivery so why to go for $13 product? The value proposition to the customers: Focus on business with clients deliveries will be before 10 am.

    Dhonis Dilemma

    Improvements What can be improved?


    FedEx
    Competition and Sandwich strategy

    Introduction

    Hub and Spoke Systems

    Segmentation of Customers Value Proposition to customers RFID

    Integrating Technology

    Improvements
    Extreme focus on fast delivery is making Fedex not to take care of proper handling of Packages Now a days needs of customers have changed a lot. Many of them are not using Fedex for sending documents but they are using it for sending valuable items. So more emphasis should be given for safe delivery than faster delivery

    Terribly Wrong!!!!!

    Conclusion Hub and spoke RFID Sandwich Strategy Improvements What can be improved?
    Fedex
    Competition and Sandwich Strategy

    Dhonis Dilemma

    Introduction

    Hub and Spoke System

    Integrating Technology
    RFID

    Conclusion
    Supplier Relationship Management
    Using Internet FedEx formed One-to-One Customer Relationships Offered Strategic Consulting Services

    Fedex belief is that Information about a shipment is as important as the Shipment itself

    E-Supply chain Management


    Using Technology and Internet for integration the business process internal and external of FedEx

    Supply Chain Integration


    Took away the Supply chain part of e-merchant leaving them to concentrate on areas such as marketing Integrated FedEx Software with Customers Internal networks, for tracking and shipping goods

    Information Visibility
    Tracking Queries solved through Internet gave Cost Savings of handling more than 100000 tracking enquiries

    Agile Supply Chain


    Corporate Vision :- Fast, time-definite, reliable distribution required a Customer focused approach Focus was on ability to interconnect and distribute information to all supply chain players

    Role of Fedex In Customers Value Chain

    Conclusion
    Technology Integration
    Shortened the order to delivery cycle with service including Transportation, Velcro wristband Order Processing Virtual Order Distribution Centre Operations RFID, Powerpad, Digital Pen Fulfilment COSMOS Purchasing, FedEx Insight Customer and sales services Virtual Order Internal Process automated through Intranet

    CFPR : Collaborative Planning, Forecasting and Replenishment

    CFPR : Collaborative Planning, Forecasting and Replenishment


    FedEx is a part of Execution Phase of a Firm which takes care of the Logistics part of Supply Chain

    Move, Communicate, Shoot Philosophy of U.S Marine Corps, FedEx Strategy


    Start Package towards Destination MOVE Make its Position known to the addressee(Communicate) Deliver it (Shoot)

    Execution : Fedex

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