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Fed Ex

FedEx emerged as a leading global provider of supply chain management services to corporate customers. It offers a wide range of SCM services through its infrastructure and technology, including inventory management, warehousing, order fulfillment, and transportation. FedEx customized solutions for clients like Fujitsu and Cisco by solving their unique supply chain problems. It built expertise through offerings like its Parts Bank service starting in 1974.

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Graham Michael
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117 views2 pages

Fed Ex

FedEx emerged as a leading global provider of supply chain management services to corporate customers. It offers a wide range of SCM services through its infrastructure and technology, including inventory management, warehousing, order fulfillment, and transportation. FedEx customized solutions for clients like Fujitsu and Cisco by solving their unique supply chain problems. It built expertise through offerings like its Parts Bank service starting in 1974.

Uploaded by

Graham Michael
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Abstract: The case discusses how FedEx Corporation (FedEx) emerged as the leading

global provider of supply chain management (SCM) services to corporate customers. The
case discusses in detail the SCM services offered by FedEx and its infrastructure facilities
that enabled the company to offer these services. 

The operations at the Memphis hub of FedEx are described in detail. Finally, the case
provides real-life examples of how FedEx solved the supply chain problems of Fujitsu
(US) and Cisco Systems by offering a customized SCM solution.

"FedEx is a supply chain company. We are very cognizant of trying to make our
customers' supply chain more efficient. But, at the same time, we became very focused on
our internal supply chain."1
- Edith Kelly-Green, Vice President and Chief Sourcing Officer, FedEx
Corporation.
 "E-Procurement delivers for FedEx," Susan Avery, Purchasing, November 18, 2001.

"FedEx's Supply Chain Services represents the best of the best and the organization has
set an example ... for other companies to follow."2
- Bo Anderson, Executive in Charge of Worldwide Purchasing, GM

As quoted in the article, "FedEx powers supply chains through synchronized reality,"
posted on www.ascet.com

edEx started offering SCM services to its customers on a very small scale in 1974. With
increasing demand for services such as inventory and warehouse management, in 1989
FedEx established FedEx Logistics Services, a group company specifically focusing on
managing the supply chain of corporate customers. Soon, FedEx started building upon its
technology intensive SCM service offerings.

By offering world-class SCM services and solving the customers' supply chain problems
by customizing its SCM solution according to their specific requirements, FedEx earned
significant appreciation from all customers.
History - The history of FedEx dates back to 1971, when its founder Frederick W. Smith
(Smith) felt the need for an airfreight system that would facilitate quick overnight
delivery of documents directly to customers. place. To serve this need effectively, Smith
decided to setup his own company.
n June 1971, FedEx Corporation was incorporated at Little Rock, Arkansas, US with an
initial investment of $84 million. In March 1973, FedEx shifted its basic airline
operations to Memphis, Tennessee, US. On April 1, 1973, FedEx commenced full-
fledged operations with a network, spread across 25 cities in the US. This marked the
beginning of the air/ground express industry. 

In 1974, FedEx commenced its logistics operations with its Parts Bank8 service. The
service involved FedEx solving the warehousing problems of small companies by
facilitating overnight shipping of their manufacturing related parts. For this purpose,
FedEx constructed a small warehouse at a corner of its Memphis sorting facility. This
was FedEx's initial effort to provide multi-client warehousing 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.

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