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Post Graduate Programme in Man(PGPM: 2012-14 Batch)Term: IV (Jun
- Aug 2013)
Management Development Institute
Supply Chain Managem
Fedex: Delive
ID
1 12P194
2 12P196
3 12P204
4 12P208
5 12P229
6 12P236
SCMCase Presentation
Presentation Date: 30-07-2013
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FedEx
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Let us see how
solve Dhonis prob
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FedEx
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Fedex Case
Logistics Management is that part of Supply Chain Manageme
controls the efficient, effective forward and reverse
flowand
related information between the point of origin and the poin
customers' requirements
Agile Supply Chain Virtual Enterprise Internet
Partnership Formation
Integrated product/production systems
Electronic commerce
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Fedex Journey
1971: Frederick W. Smith bought controlling interest in Arkansas
Aviatio- 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
somethin
1973: Company started with the launch of 14 small airplanes from
Mem
What has really triggered the growth of FedEx is its ability to
successfull
1977: Air Cargo DEREGULATION allowed FedEx to use larger
aircraft spu
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FedEx
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Hub and Spoke Mode
FedEx invented the hub and spoke model to increase itsefficiency
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 significantlyto
(n-1) connections hence improving efficiency by n times.
See the clip how the flights were coming to one superhuband
going from there.
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Hub and Spoke Model - F
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FedEx
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Integrating Technolog
COSMOS: Real-time package tracking
COSMOS (Customer Operations Service Master On-line System
tracking system that monitors every phase of the delivery
cycle
Ever since FedEx adopted Internet technology, it has
currently
Solutions and GPRS.
FedExs website allows its customers and business partners to
regarding shipment process, locations, tracking, freight
service
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Microsoft PowerPad, Wireless Solution
FedEx uses wireless data collection devices
The FedEx PowerPad is a Microsoft Windows-Powered Pocket
parcel and RFID tags to determine the location and status of
th
PowerPad immediately uploads information such as signature
stamp into the FedEx network,Cosmos.
Powerpad can acces real time information about other packag
to answer questions.
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Powerpad and GPRS
Powerpad communicates with the printers on the colabels for the
packages.
Powerpad uses the General Packet Radio Service (Gmobile phone
companies and bluetooth to allow theCosmos.
Digital data can be sent via general packet radio sermobile
phone, PC, personal digital assistant (PDA), f
information bank.
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Digital Pen
FedEx also uses a digital pen that incwireless transceiver and
infrared camerimages of user handwriting patterns.
This provides security and proof of a usinformation and is
immediately transmtime.
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Scanning and Sorting Velcro Wristband RFID Video
RFID
FedEx
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Radio Frequency Identificatio
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 t
is uploaded by the RFID system.
They are also monitoring temperature and humidity i
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Scanning and Sorting Velcro Wristband RFID Video
RFID
Segmentation of Customers Value Proposition to
customers
Competition and Sandwich strategy
FedEx
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Competition and Sandwich S US postal service launched its
product Express Ma
priced at $8.95
FedEx in response re - segmented its customers in
Standard by defining precision in delivery not onterms of time
as well
Priority priced at $13 and Standard at $9
FedEx do not have to send separate deliversame destination: a
standard delivery is abpriority delivery so why to go for $13
produ
The value proposition to the custFocus on business with clients
de
will be before 10 am.
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RFID
Segmentation of Customers Value Proposition to
customers
Competition and Sandwich strategy
What can be improved?Improvements
FedEx
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Improvements
Extreme focus on fast delivery is making Fedex n
handling of Packages
Now a days needs of customers have changed a
using Fedex for sending documents but they are
valuable items. So more emphasis should be giv
faster delivery
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Terribly Wrong!
Conclusion
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RFID
Competition and Sandwich Strategy
What can be improved?Improvements
Hub and spoke RFID Sandwich Strategy
Conclusion
Fedex
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l
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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
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)
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