FedEx Q2

Q2
List the benefits of a virtual supply chain (FedEx as the content)

Definition of virtual supply chain:

Supply chain is the linkage of moving information, services and cash flow between supplier and customers. Virtual means the connection of chain or network via electronic devices of an organization which can help enhance the flows of information, products and services more efficiently and effectively in the supply chain management.

FedEx include:

1. COSMOS - Customers Operations, Service, Master on-line system

A global shipment tracking network based on a centralised computer system. It is made by placing a bar-code on each parcel at the point of pickup and scanning the bar-code at each stage of the delivery cycle. COSMOS integrated two important information systems, which are information about goods being shipped and information about the mode of transportation.

2. DADS - Digitally Assisted Dispatch System

It coordinated on-call pickups for customers. It also allowed couriers to manage their time and routes through communication via a computer in their vans.

3. EDI - Electronic Data Interchange

It can provide integrated logistics systems. It will redefine sources and procurement strategies and link with other parties in the supply chain such as suppliers and raw materials.

4. PowerShip Plus

It is a DOS-based shipping system integrated with customers’ order-entry, inventory-control and accounting systems, for customers who ship more than 100 packages per day.

5. VirtualOrder

It is a software that links Internet ordering with FedEx delivery and on-line tracking. It also puts customers’ catalogues on their Websites for them.

Benefit:

1. Build one-to-one relationship with their customers (By EDI)

It can provide one-stop solution for its customers, buyers and suppliers. Besides, it can help customers to redefine sources and procurement strategies with other parties. Also, the business partners can match supply to demand without wastage.

2. Keep tracking on the packages (By COSMOS)

The management team can manage vehicles, people, packages, routes and weather scenarios on real time basis. Then the trigger alert will appear when scheduled events did not occur or the happening of sudden event. Therefore the customers can get the information of delivery order on real time basis.

3. Improving efficiency and control (By PowerShip Plus)

It can provide the most active customers with proprietary on-line services. Also it can stores frequently used addresses, label printing, online package pick-up requests and package tracking.

References:

FedEx PDF

FedEx: http://www.fedex.com/hk_english/
http://www.cio.com/article/2439622/mobile/wireless----ups-versus-fedex--head-to-head-on-wireless.html
http://www.informationweek.com/it-leadership/fedex-makes-strategic-shift/d/d-id/1109834?