FedEx Q3

Q3 
Discuss the role of IT in FedEx’s Business Strategy

Internal:

1. Enhance efficiency (back office) and effectiveness (front office)

The advanced information system can share the information among different department and parties. It can also improve the communication and transparency within a company. In addition, it enables the company to re-engineer and redefine their supply chain activities in order to add value to the service, improve efficiency and effectiveness. As a result, the cost will be directly reduced and the satisfaction level will be increased

2. Explore more business opportunities

The company can gain more business opportunities by using e-ailing and e-commerce. It can overcome the geographical limitation for the company, their customers and potential customers. On the other hand, the latest information is available for internet user to access without huge cost and time.

3. Provide real-time information

Fedex has a Global Operations Command Centre which is a worldwide central nervous system of Fedex. The real time information can be gathered and delivered efficiently. The new information can be updated instantly and automatically within 24-hour, seven-day operation. The instantly updated information can improve efficiency in their operation and provide a better service to customers. It makes Fedex become more competitive in the market.

4. Make use of RFID

It uses a chip to track products/order which can directly fasten process and increase transparency. It also provide real time information in operation.

External:

1. Improve customer service level

Fedex uses COSMOS (Customer Operations Service Master On-line System) in order to provide a platform for customer to gain shipping information and track the parcel. The customer database also consolidate the information properly. Customer can find out at any time exactly where their parcel is and when they can expect delivery.

2. Handle a higher shipping volumes

The PowerShip System can handle large volumes and automate the shipping process. It offers address book to reduce time to complete shipping labels for frequent recipients. It is convenient process to customers by a few step. Also, customers can check the status and real time tracking information of the parcel. It can improve efficiency and reduce errors. Therefore, it builds trust and loyalty to their customers.

3. Apply Electronic data interchange (EDI) and the Internet

It can reduce transaction cost and provide instant information to customers. Besides, It helps to build one-point access for customers: management services, included transportation, order processing and related distribution center operations etc. All these activities can improve the customer relationship.

Global Market:

1. Provide new service

Consumer can place order and raise requests by using FedEx Home Delivery. An order checking number is provided for parcel checking. Besides, consumer will receive an electronic signature receipt through the internet.

2. Expand the market

It is easy to access to the other countries and explore more potential customers.

3. Allow global sourcing

It offers freight service and some value added services such as warehousing. It can lower the cost by choose a cheaper supplier in the global market

References:

FedEx PDF

http://en.wikipedia.org/wiki/FedEx
http://www.ft.com/cms/s/0/0123be4c-1d78-11e4-8b03-00144feabdc0.html#slide0
http://www.globallogisticsmedia.com/asiapacific/view/innovation-and-technology-key-to-fedex-service-offering