MIS Assignment Report

On
FedEx Corporation

Submitted to:
Prof. T.Kumar
Xavier School of Rural Management
Xavier University Bhubaneswar

Submitted by:
GROUP 3
UR19029_Prajyut Kar
UR19032_Pushpanjali Mishra
UR19044_Shreya Adhikari
UR19045_Shubham Agarwal
UR19048_Subham Kumar Nandi
 Table of Contents

1) About FedEx and Industry Structure: ......................................................................................... 4

a) FedEx Corporation Porter Five Forces Analysis ................................................................. 4
a. Bargaining Power of Buyers: ........................................................................................... 4
b. Bargaining Power of Suppliers: ....................................................................................... 4
c. Threats of New Entrants:.................................................................................................. 4
d. Threats from the Substitute Products: .............................................................................. 5
e. Rivalry of Existing Players: ............................................................................................. 5
f. Basis of Competition: ....................................................................................................... 5
g. Direction of Change within Industry:............................................................................... 5
2) IT in Firm VIS-À-VIS Industry Standards: ............................................................................... 5
a) Industry Coalition Memberships – Blockchain in Transport Alliance (BiTA) ................... 6
3) IS ALLIGNMENT WITH VMG (ACTUAL) ........................................................................... 6
a) Organization Vision, Mission, Goal and Strategy:- ............................................................. 6
b) Is IT improving the right Business process? ........................................................................ 6
c) Is organization using right “Metrics” to measure progress towards goals? ......................... 7
d) Is IS helping to measure those metrics? ............................................................................... 7
4) IS ALLIGNMENT WITH VMG (POTENTIAL) ..................................................................... 7
a) Articulation of organization VMG, Strategy? ..................................................................... 7
b) Can IT improve the right Business process?........................................................................ 8
c) Can better metrics be used to measure progress towards goals? ......................................... 8
d) Can IS helps to measure those metrics better?..................................................................... 8
5) And 6) IS Strategy (Actual) and (Potential) ............................................................................... 8
a) Low-Cost Leadership- ......................................................................................................... 8
b) Product Differentiation Strategy- ......................................................................................... 8
c) Focus on the Market niche-.................................................................................................. 9
d) Core Competency- ............................................................................................................. 10
e) Synergy- ............................................................................................................................. 11
7) FedEx and Value Chain (Actual)............................................................................................. 11
a) FedEx Business and Supply Chain Services ...................................................................... 12
a. Hub and Spoke: .............................................................................................................. 12

2
 b. COSMAT II (Computerized On-line System for Management, Accounting and
Tracking), ERP Program: ...................................................................................................... 13
c. SMART (Space Management Allocation Reservation and Tracking): .......................... 13
d. Pack Track: ..................................................................................................................... 13
e. Cold Chain Services: ...................................................................................................... 13
8) BUSINESS VALUE CHAIN (POTENTIAL) ......................................................................... 14
a) Appoint somebody to handle your value and supply chain ............................................... 14
b) Always have a Plan B, and recognize areas of high risk ................................................... 14
c) Set benchmarks for productivity and performance, and recognize weak spots. ................ 14
d) Enforce digitization and acknowledge that visibility is crucial ......................................... 14
9) ENTERPRISE RESOURCE PLANNING (ACTUAL) : ......................................................... 15
a) Benefits in using ERP: ....................................................................................................... 15
b) FedEx ERP ......................................................................................................................... 16
c) Ordering Process: ............................................................................................................... 17
d) From ordering to delivery of the package: ......................................................................... 18
e) Customer Relationship Management (CRM): ................................................................... 18
f) 6*6 Transformation initiative by FedEx: ........................................................................... 19
g) More initiatives taken by FedEx to improve service further: ............................................ 19
10. Enterprise Resource Planning (Potential) ............................................................................... 20
References: .................................................................................................................................... 21

3
1) About FedEx and Industry Structure:

The FedEx Company is an oligopoly business structure. They have control over the production of
a commodity owned by a limited number of manufacturers, each of whom is capable of controlling
prices and thereby directly affecting competitive position.
FedEx Corporation, which offers strategic and comprehensive financial reporting to operating
companies working together under the worldwide FedEx name, leads FedEx today: FedEx
Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade
Networks, FedEx Supply Chain Solutions and FedEx Services.

a) FedEx Corporation Porter Five Forces Analysis

a. Bargaining Power of Buyers:

In the courier and logistics industry, the bargaining power of buyers is high. FedEx has a large
customer base, including people and businesses that mainly work in e-commerce portal. Most
firms have FedEx delivery contracts, too. Furthermore, since FedEx not only offers the service,
there are other firms that also provide the same services. Because of the low costs, the customers
have several options to turn to other firms. It is simple for the customer, because the industry's
switching costs are low. Normally, however, FedEx and DHL compete in rates with each other
and offer bulk discounts as appropriate for the companies.

b. Bargaining Power of Suppliers:

The supplier's bargaining power in the logistics industry is low. It is primarily due to the uniform
products or services. In addition, simple accessibility of backward integration often plays a role in
lowering supplier's bargaining power. Suppliers are more like buyers as compared. However, the
specialization allows aircraft, cars, and ship suppliers to shave high bargaining power. Hence,
maintaining a successful relationship with suppliers allows the business to have a high profit
margin.

c. Threats of New Entrants:

FedEx is a well-established company with a good brand identity in the global logistics market.
There is low threat from the new entrants in the courier and logistics market. It is largely due to
strong capitalization. Huge channels and networks of distribution are required to function in the
sector. Ships, aircraft carriers, road-transport vehicles that are very costly are required. In fact, it
is difficult for the new entrant to contend with the market's major corporations, who have built up
a powerful brand identity. The government has stringent rules and regulations, which is yet another
entry obstacle for the new entrants.

4
d. Threats from the Substitute Products:

In the logistics industry, the threat of the substitute products is very low. This is due largely to
fewer alternatives. The key substitute for this is the air delivery systems that a number of
businesses offer. However, through creating high marketing goals around the world, FedEx has
sustained this impact. The company has built up good brand awareness through marketing
campaigns and high-quality services. FedEx has recognized its market value and offer its
customers a wide range of services. In fact, the organization found that online shopping has
improved the distribution service network. Whereas FedEx with its marketing tactics draws
massive customer base.

e. Rivalry of Existing Players:

In the logistics industry, there are few companies, which share market share. Those are the FedEx
rivals. The postal network companies such as United Parcel Services, DHL, etc. compete with
FedEx. The rival's rates are also competitive and the cost of switching is also weak. This means
FedEx needs to compete with them on the basis of quality and creativity. However, DHL quit the
U.S. industry. FedEx also faces competition from local postal providers, such as government post
offices, TCS and so on, which really leads to fierce competition among the firms. Therefore, the
level of rivalry in the logistics sector is moderate.

f. Basis of Competition:

The basis of competition existing in logistic industry is to fulfill the needs of the client demanded
at a lower prices and delivery of the materials in a smooth flow on time and in safe condition.

g. Direction of Change within Industry:

With the passage of time, there are many things that need to be revamped. In this Industry, we
observed following direction of change:

 Customers’ Expectations: The expectation of customer is rising in terms of quality

of service delivered. Hence, the industry's deliberation of work has become more
refined.
 Adoption of New Technologies: One who has taken full advantage of newer
technologies emerging can rule the market like anything, providing an edge over
others. Thus, all companies are now focusing to build their IT infrastructure as per
latest versions for better functioning.

2) IT in Firm VIS-À-VIS Industry Standards:

• In transportation, FedEx sees tremendous potential for blockchain, where a decentralized

digital ledger could build more effective and safe supply chains for our clients.

5
 • They are investigating a range of possible blockchain technology use cases through
existing operating enterprises.
• Blockchain technology has the ability to increase the visibility of the product, speed
customs clearance and provide a shared language across the networks of various businesses
and different industries.

a) Industry Coalition Memberships – Blockchain in Transport Alliance (BiTA)

 Member-driven organization.
 Members are particularly from the shipment, transportation, distribution, and related
industries.
 Share a common mission to push forward the adoption of new emerging technologies.
 Accomplished by developing Industry standards, educating members and others on
blockchain applications and solutions.

3) IS ALLIGNMENT WITH VMG (ACTUAL)

a) Organization Vision, Mission, Goal and Strategy:-

FedEx’s Vision statement stress more towards dynamically operating by investing in the
latest technologies and acquiring smaller related business in logistics and transportation
segment while keeping technology as its core component for years to come.
FedEx’s Mission statement evidently compromises of a tenacious focus towards producing
greater financial returns for the shareholders, investing more in developing new
technologies in the field of transportation and logistics and finally working with allied
partners with establishing deep relationships to make operations more smooth and
streamlined for the better customer experience.
FedEx’s Goal statement spotlights long term goals like an increase in Earning per share by
10% to 15% per year, improvement in cash flows, and growth in profitable revenue of the
company and increase returns for the shareholders.
FedEx’s Strategy emphasizes more on the growth of the company by e-commerce and the
adoption of superior technology, growth on the company’s existing supply chain
capabilities, and growth through introducing new services and alliances furthermore.

b) Is IT improving the right Business process?

Yes, IT has been the shinning-star for FedEx towards improving the right Business process.
Drones, Blockchain, COSMOS (Customer Operations Service Master On-line System) and
many more to name some are few new IT examples that have been used by the company
to improve its Business process. Latest of all been, Drones used for the first time in October
2019 in the U.S.A by the company to deliver small packets efficiently and securely.

6
 Blockchain technology is in the pipeline of the company’s list of adoption of emerging
technologies along with a sparkle of AI with everything.

c) Is organization using right “Metrics” to measure progress towards goals?

Yes, the organization is using the right “Metrics” to measure progress towards goals. FedEx
have been consistently publishing Global citizenship report, Financial highlights of each
year, Sustainability and Environmental Efficiency reports and many more which shows the
vehement focus towards long-term goals which highlights that with every year surpassing
company being actively participating towards achieving targets with environmentally
friendly measures in a way which indirectly helps in recuperating company’s own financial
health year by year, quarter by quarter and furthermore. It becomes very much important
for the organization as the goal statement itself invites the investors and other stakeholders
towards it and thereby employing improved technologies comes into the picturesque
furthermore.

d) Is IS helping to measure those metrics?

Yes, Information System is helping the organization to measure those metrics in a better
way. For example, Management Information System (MIS) is serving the middle-level
managers by making them aware of Organization’s performance on various parameters,
how much FedEx must charge the customers for delivering a particular good, etc. Another
example is Decision Support System (DSS) which fuses the data and various mathematical
models like what-if analysis, sensitivity analysis and furthermore to provide the invisible
information for the senior management and executives. Even Database Management
System (DBMS) also helps in the creation of a database and also making it available for
further business applications, for example, it helps in sorting of different packaging for
practical purpose, etc.

4) IS ALLIGNMENT WITH VMG (POTENTIAL)

a) Articulation of organization VMG, Strategy?

FedEx’s Vision, Mission and Goal statement articulates its activities more accurately. Like the
adoption of newer technologies like Drones in the year 2019, COSMOS in the year 1979 and
many more hints that company has been consistently focusing towards its Vision and Mission
while achieving every year higher financial returns year by year and improving the Return on
investment for the shareholders every year by employing better Information Systems
throughout the financial year by the organization shows deep commitment towards its Goals.
On comparison to its competitors like DHL, UPS and many more adopting better growth
strategies like focusing more on developing as an e-commerce player in the market and
adoption of superior technology than its counterparts, improving its existing supply chain on a

7
 daily basis by partnering or acquiring of services relevant to company’s operations strongly
expresses its consistent Strategy is being employed all around the clock 24*7.

b) Can IT improve the right Business process?

Yes, Information technology can improve the right Business process. Like in the case of FedEx,
the organization is quite excited to apply Blockchain as a new member in its Business process
where a common shared digital ledger could establish a more secure and efficient supply chain for
its customers thus helping in better customer experience.

c) Can better metrics be used to measure progress towards goals?

Yes, better metrics can be used to measure towards goals by employing new Information Systems
like Knowledge Management Information System (KMIS) and Geographic Information System
(GIS) in the business process thus more information can be part of the Organization’s culture. All
this will indirectly help in achieving the organization for achieving its long-term sustainable goals.

d) Can IS helps to measure those metrics better?

Yes, Information Systems can help us to measure the metrics much better way as the organization
is already following the MIS, DBMS, DIS, and other Information Systems to function in a much
better way. Also if possible, KMIS and GIS can also be employed in addition to the existing
systems.

5) And 6) IS Strategy (Actual) and (Potential)

a) Low-Cost Leadership-

a. Actual- Cost Leadership strategy is where a set of actions taken to produce goods or
services with low cost that are acceptable for every customer. In this kind of industry,
customers are very much price sensitive. They generally go to those producers who are
offering their products at the cheapest cost. However, in the small package express
delivery industry, market competition is generally based on price compromising or on
quality.
b. Potential-Now, in the US market, there are three main Players-FedEx, UPS and USPS
(Hill 2012). Now, nationwide FedEx and UPS hold together almost the same market
strategies and used almost the same business models. Though the basic difference is
UPS follows a low-cost strategy while FedEx follows a differentiation strategy.

b) Product Differentiation Strategy-

a. Actual-Though for a long time, FedEx also uses low-cost strategy but using the same
business model one company cannot run in the long run. That's why FedEx follows a
strategy where they can innovate and produce a different kinds of products and along

8
 with that also, they offer corporate discounts to those big clients. They focus on value
creation by building four frontiers, like- superior efficiency, superior quality, superior
innovation and superior responsiveness to customers. In addition, it helps them to make
a difference from rival companies. There are few differences that FedEx offers like-
guarantee on-time delivery or cash-back, clearance systems on customs, customer
service around the world, simple paper-work, real-time tracking information. Most
importantly, people are now made a verb from FedEx-like when they want fast delivery
they say' FedEx it'. They mainly try to differentiate their products based on innovations
and the implementation of new technologies. So, customers can get a message"
controlled and safe delivery" for highly technical and high-valued goods. For following
these kinds of innovative techniques, they earn the second position in the world among
express shippers in the US market. FedEx uses market segmentation to differentiate.
Each segment can concentrate on its market. Their goal is to operate independently yet
to compete collectively. This will better serve its customers.

b. Potential- They were the first company that opened a website for better reach and
communicate with the customers. They offered them various services like-
opportunities of grabbing discounts for immediate placing, gave them proper
information before placing an order, gave them abilities to know about the location of
their services, make a tool or mechanism where they can track their order, by which
customers can know very well where their package is, which also saves their time and
helps them to release tension. To provide these kinds of services a company needs to
control its capacity which is based on flexibility and ability to use different kinds of
delivery media such as, (air, ground, ocean) and different types of transportation units
and logistic networks (hubs, warehouses) to carry cargo. FedEx was first established as
an overnight air delivery carrier, but with time being, it started to follow and develop a
ground network for different kinds of services following UPS. Now, they are aiming to
expand its services through ocean transportation, as it requires less fuel. To sum up, all
those points, we can say FedEx aims to achieve full customer satisfaction. Customers
are its priority and it does everything it can to make it a smooth experience for them
through the different services it offers.

c) Focus on the Market niche-

a. Actual- As stated earlier, FedEx focuses on offering various kinds of services not at
low cost. Though they offer corporate discounts to those big clients or regular
customers who widely use FedEx for transporting their valuables. By, following these
strategies, FedEx now owns thirty percent market shares in the US market. They try to
capture customers by following these strategic business models like-

9
  FedEx Express –This U.S. based Company offers on-time delivery of envelopes,
packages, multi-piece shipments, and freight up to 150lbs., within one to three
business days.
 FedEx Ground –It is North America based company and second-largest provider
of businesses and residential money-back-guaranteed small-package.
 FedEx Freight –They mainly operate by providing next-day and second-day
regional LTL (less-than-truckload) heavyweight freight services, over 150 lbs.
 FedEx Custom Critical – It offers non-stop, time-specific, door-to-door delivery.
 FedEx Trade Networks – They provide international trade services including
customs brokerage, trade advisory services, information technology, e-clearance,
and air/ocean freight forwarding.
 FedEx Services –They provide solutions for consolidated sales, marketing, and
technology support.
 FedEx Kinko's – Provides personal and business publishing/copying solutions for
transporting frights.

b. Potential- Also FedEx currently operating in an e-business platform by integrating

physical and virtual infrastructures. The main difference between FedEx and UPS is
FedEx has more dissimilar operations—from express to ground to freight—a single
network strategy would not help. However, for UPS, though they have different
businesses but mostly are essentially about small package delivery and for this, a single
network makes the most sense.

d) Core Competency-

a. Actual- Core competency is a unique technology or skill that helps to create

differentiating one company than others. As an organization grows, develops, changes
the way of customer interaction, its core competency also adjusts and changes along
with these. They do not remain fixed and rigid. It helps in creating and developing new
goods and services and also helps to decide the future of the organization.

b. Potential- Like, the core competency of Federal Express (FedEx) is logistic

management. From, founding to 30 years after till now, their strategic competitiveness
has been based on careful and fast delivery speed and reliability. FedEx's strategy is to
satisfy growing customers' needs so they can effectively perform on the market and
have above the average profit. Where in the case of UPS they want to discover complete
additional ways to create value for client organizations.

10
e) Synergy-

a. Actual- FedEx connects people through the world-wide network in means of shipping, e-
commerce, transportation, etc. They mainly work through integrated business models and
applications through companies under the FedEx brand in means of collaboration. They
collectively work together and deliver extra-ordinary services to customers. They want to
fulfil all customers' demands by using reliability and expertise, which are represented by
the FedEx brand.

b. Potential- They believe that without customers they cannot run their business, so customer
satisfaction is the more crucial point and they are the main foundation of getting success
for FedEx. They inspire their global workforce of more than 400,000 employees to remain
focused on safety, concentrate on the highest ethical and professional standards, and fulfil
the needs of their customers and communities. FedEx provides a lot of wide services
around all over the world like- transportation, e-commerce, and business services through
its group of companies. They mainly offer integrated business applications through other
companies under FedEx brand. It provides on-time delivery services and international trade
services such as customs brokerage, and global ocean and air freight forwarding. The
company classifies its business operations into five business segments, namely, FedEx
Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services.

7) FedEx and Value Chain (Actual)

The analysis of value chain helps to recognize resources and capabilities, which can create edge
over other firms and build firm’s competitive advantage in the logistics industry. Based on value
chain model developed by Porter, value creating activities are distributed into two categories:
1. Primary activities: It comprises of inbound logistics, operation processes, outbound
logistics, sales and marketing and customer service.
2. Support activities: It comprises of infrastructure, technology development and HR
management and development.
Inbound logistics at FedEx continue with picking-up parcels from numerous locations. Value is
generated by allowing packet pick-ups from nearly just about anywhere for customers. The
packages than join the operations cycle by taking them to the hub where they are sorted by their
final destinations. Outbound logistics involves transporting packages to their final destination,
either by truck or by plane. Perhaps the highest value generating operation for FedEx is on-time
package delivery. FedEx spends large amounts of money on ads, distribution and marketing.
FedEx provides excellent customer service as it is continuously seeking new ways of bringing
value to customers. Early on, it developed COSMOS (Computerized On-line System for
Management, Accounting and Tracking) tracking system that tracks every step of FedEx delivery

11
process and became the pioneer in overnight deliveries. It also established website to help track
deliveries for customers.
Each of the first activity is feasible because of support activity like company infrastructure (like
large convoy of planes and trucks), information technology (for tracking packages) and human
resource management. FedEx has its competitive advantage with the help of their company
infrastructure and data technology. Robust infrastructure permits for timely and reliable delivery
of packages and innovative technology helps clients track packages on-line from commencing to
finish while not having to contact customer service. FedEx has been ranked twelfth for the most
loved company to figure for by Fortune and its policy to continually introduce and creates worth
more services for clients.

a) FedEx Business and Supply Chain Services

FedEx Supply Chain proposes a range of services that helps in converting supply chain
management into a strategy, which can be competitive in nature. By outsourcing to a trusted
vendor, these flexible and scalable solutions can focused as core competencies, which can reduce
costs and also improve overall customer satisfaction.
Every FedEx program in the system is precisely customized to the business requirements to
achieve enhanced efficiency in the whole supply chain. Through systems designed to maximize
the availability and distribution of essential inventories and components across our network of
forward storage locations, central warehouses and fulfillment facilities, to transport management,
dock systems, and a' cold-chain' transport network–the Healthcare Shared Network–FedEx Supply
Chain offers the connection to improve custody control and optimize the use of available
transportation alternatives.

a. Hub and Spoke:

FedEx has successfully executed hub and spoke distribution channel to achieve a competitive
logistics advantage. They have initiated that this method of distribution reduces transportation
costs, progresses cycle times, and lessens inventory. Many other corporations are now
understanding that substantial cost cutting and savings can be the result from improving their
delivery processes.

12
A hub and spoken network is an interconnected, centralized, unified logistics system designed to
keep down costs. Hub and spoke distribution centers accept products of several different sources,
combine the goods and then deliver them to destinations.

b. COSMAT II (Computerized On-line System for Management, Accounting and Tracking),

ERP Program:

COSMAT is a complete, indigenously designed Enterprise Resource Planning Program developed

by FedEx. It integrates with corporate information management systems for human resources
management, financial reporting, ordering, inventory control, and relationship management
strategic planning. It was designed in four large modules to cover all of the organization's dynamic
processes.
COSMAT II provides easy access to the database over a large network area and guarantees
accurate information and input even in areas impacted by weak telecommunications infrastructure.
It is an evolving program, constantly updated, adding value to the customer and making processes
faster, safer and more manageable.

c. SMART (Space Management Allocation Reservation and Tracking):

SMART is an in-house state of the art technology that enables real-time Aviation network space
and income management. This means that the aircraft is profitably loaded, and that all consumers
with agreed space on the aircraft have the confidence that their shipments will be flying. SMART
fits in with COSMAT II leveraging the system's infrastructural power. SMART is built on Oracle
technology, and the Oracle 8i database.

d. Pack Track:

Pack Track is an API (Applications Program Interface) built for any logistics, delivery, supply and
inventory-control system. It was developed to simplify and incorporate shipping and distribution
processes.
Pack Track can be incorporated into the client's systems, which helps them to retain track of all of
his customers ' delivery status.

e. Cold Chain Services:

FedEx Cold Chain Services makes pick-up and distribution plans for a temperature-controlled air-
cargo container and exclusive-use vehicles. For optimum cargo container efficiency, it has the
ability to regulate container placement inside the aircraft, along with the cargo-hold temperature.
A specially trained Temperature-Control Services team has been assigned to manage airfreight
shipments that are sensitive to temperature. Shipment monitoring from pickup to distribution, with
unrivaled command and freight control within the FedEx network.

13
8) BUSINESS VALUE CHAIN (POTENTIAL)

A secure and effective value chain is essential to any business 'success, and even minor
breakdowns can be harmful. Armed with information and anticipating the unexpected, however,
would not only mitigate challenges, but also see the company run more effectively than ever
before.
Being one of the largest logistics firms in the world, FedEx knows just how critical it is to retain
ownership of the supply chain. Below are some of the key tips to help them increase speed and
performance, minimize weak spots and maximize benefit.

a) Appoint somebody to handle your value and supply chain

Large or MSME or small; local or global; in order to deliver the product to any customer, a
business work in sync with individuals, processes and other businesses. To ensure that these
components work well together, the most efficient approach is to appoint one person to manage
the entire operation. The manager must keep department heads, from shipping to sales, updated,
organized, and interacting, as well as detecting and troubleshooting possible issues before they
cause disturbances.

b) Always have a Plan B, and recognize areas of high risk

It is important that you have a contingency plan in case of value chain failure. This may be as easy
as getting the information of a rental company should have a breakdown of the truck or a list of
contract staff to fill in for sick employees. Whatever it might be, devote time and energy to
developing contingency plans in the value chain. They need to learn which area face the greatest
threats, too. A website crash can cause delays, but because a manufacturer has gone out of business
may mean total failure, being unable to get critical components for your product. Know which
elements are the most dangerous in the supply chain and have they covered.

c) Set benchmarks for productivity and performance, and recognize weak spots.

The annual analysis of the supply chain processes offers useful insight into where they can make
changes. A highly efficient way to maximize processes and optimize operations is to set goals and
run benchmarking exercises in the supply chain.

d) Enforce digitization and acknowledge that visibility is crucial

Digitization results in an explosion of intelligence-based approaches to challenges in the supply

chain. The "Internet of Things" and real-time technology give businesses even greater influence
over their supply chain, enabling them to watch their product travel through the supply chain, and
to locate their location in warehouses or distribution centers (historical blind spots).

14
Implementation of the above approaches by FedEx will soon make them to serve in faster delivery
times, better customer service, recurring business and eventually increased profits, making the
logistical chain a top priority for any organization.

9) ENTERPRISE RESOURCE PLANNING (ACTUAL) :

For integrating the business processes like manufacturing, finance, production and other functional
areas into a single software system ERP is used. Through single software architecture an ideal
enterprise system can control all the important business processes.

a) Benefits in using ERP:

ERP helps businesses to become more productve and flexible thrugh

 Managing the business proceses in a more deeper way

 Integrating the group of processes
 Managing the resources efficiently
 Handling the customers more accurately

Inventory
Manageme
nt

Sales Purchasing

Vendor
Customers
Enterprise Integration
Resource
Planning
(ERP)

Internet/Sm
s CRM
(LAN/WAN)

HR
Accounting
(Payroll)

15
b) FedEx ERP

FedEx use ShipERP which is a fully integrated SAP multi-carrier shipping solution. It performs
like real time carrier. Starting from rate quoting, shipment creation, Shipment tracking, proof of
delivery and label printing all are done by Ship ERP.

Business
Challenge
Disintegrated Computer
Tracking System,
Non Standardized products
Management

Clear and timely Information sharing

Organization
IS Business
Integration of Business Processes Solutions
Placement of sales order,
Increase in turnover,
Automated delivery notification
Improvement in
customer and supplier
relationship

Technology

SAP ERP

16
c) Ordering Process:

•Through Online
•Through Telephone/Mobile
Place Order

•Preparation of the orders

Order •Packing of the orders after the payments done
Packed

•Orders ship with FedEx ground

Order •Online tracking of the packages
Shipped

•Shipments of the orders to delivery centers from the warehouses

•Open and report all the damaged and missing items if any
Order
•Waiting for all the items to arrive
Inspection

•Orders are delivered within 1-5 business days

Order
Delivery

•Gives feedback for the order through mail/ online portal/ telephonic call/whattsapp
Customer

17
d) From ordering to delivery of the package:

S
Package Pickup Packing Carriers
Sales Order
Scanner Collection of Delivery of
Select the service
Packages packages in desired
code Destination Locator
Manual Segregation destination
Select Carrier Weight Calculation
Weight of Cartons Create ship label
Pickup Satisfied customers
Print Shipping
Label
Transporataion

Input Output

Process

e) Customer Relationship Management (CRM):

CRM is a strategy for enhancing the satisfaction of the customer through optimizing the
profitability. In addition, the added loyalty of Customers’ is the focus of CRM, which directly
affects any organizations’ bottom line. CRM try to ensure all the customer-interfacing functions
like marketing, technical support, sales etc. are efficient.

18
E-CRM
Through the integration of electronic channels like wireless, voice technologies etc. and combining
with the e-business applications, E-CRM helps to expand the traditional CRM techniques.

Internet + Traditional CRM= E-CRM

E-CRM helps to personalize the products based on customers’ individual requirements and helps
to enhance in interaction with the customers. E-CRM helps to track the all the real time searching
history of the customers through various means and store them in a database for future analytical
works. E-CRM is designed based on the customer needs. FedEx use E-CRM strategy to give their
customers a unique and extraordinary services. E-CRM helps to deliver all the products on time
as promised. E-CRM gives competitive advantage to FedEx over its rivals. In 2001, FedEx started
two CRM applications, one to build customer profile and another to provide customer service. It
helps FedEx to solve all the problems of the customers quickly. E-CRM helps in customer retaining
also.

f) 6*6 Transformation initiative by FedEx:

1) To satisfy the customers of FedEx

2) To work as trusted partners with all the clients
3) To evaluate better opportunity for every FedEx IT employee
4) To boost its ‘bandwidth’ as an organization for improving its ability to deliver quickly
5) To Establish and unify a consistent environment
6) To simplify the access of information

g) More initiatives taken by FedEx to improve service further:

 Improvement in the relationships of internal business

 Creation of satisfying work environment for IT professionals
 Helping IT workforce to work across teams for initiating projects much faster through
providing proper training to them
 Same platform of IT across all the departments
 Simplification in case of accessing any information
 Use of additional technologies like RFID, The POLICE system, intelligent Pen technology,
FedEx power pad etc.
 Use of advance algorithm and analytics for better result

19
10. Enterprise Resource Planning (Potential)

FedEx can increase efficiency:

1. Through using an integrated computer tracking system
2. Through deploying the platform on premise or in the cloud, which will help to remove
the burden of maintaining the legacy systems of FedEx. It will help the company to run
more efficiently and will also help in more accurate decision making.
3. FedEx will get more benefit if it starts using SUSE Linux Enterprise server, which is
specifically made to use with SAP Hana. Even under full CPU loads and high stressed
memory, it can consistently give good result.
4. FedEx can use a business intelligence platform called QlikView, which will help FedEx
to visually analyze data to get business insights in less time.
5. Port of Destination (POD) tracking system can be implemented to provide high
visibility of the air cargo.

20
References:

1. "FedEx 2018 Form 10-K Annual Report". sec.gov. U.S. Securities and Exchange
Commission. July 16, 2018
2. Ron Da Parma (December 27, 2007). "IRS says FedEx may owe $319 million". Pittsburgh
Tribune-Review. Archived from the original on December 26, 2007. Retrieved January
3, 2008
3. "UPS, FedEx "Brown Bailout" battle rages on". Fleetowner.com. Archived from the
original on June 16, 2010. Retrieved June 16, 2010
4. Kimball, Spencer. "Beijing to investigate FedEx for 'damaging rights of Chinese clients'
amid Huawei dispute". CNBC. Retrieved June 1, 2019
5. "TV Acres Advertising Mascots". Retrieved September 18,2008
6. "Air Transport Lobbying Profile". OpenSecrets.org. United States: Center for Responsive
Politics. 2020. Retrieved January 2, 202
7. "FedEx Ground Announces Seven-Day Residential Delivery Year-round". About FedEx.
Retrieved May 30, 2019
8. FedEx Corp. Reports Third Quarter Earnings | FedEx Global Newsroom".
News.van.FedEx.com. March 19, 2009. Retrieved November 2, 2010.
9. "FedEx Corporation – Company History". Fundinguniverse.com. Retrieved November
2, 2010

21