AT

SUBMITTED TO

PROF : MANMOHAN BAKAYA

TABLE OF CONTENTS

Sl No. TOPIC PAGE

NO

Acknowledgement

1) About FedEx

2) Blue Dart

3) The FedEx Supplt Chain

4) Transportation And Logistics Management

5) Customer Service in the Supply Chain

Learnings

ACKNOWLEDGEMENT

We are very grateful to Prof. Manmohan Bakaya, our Supply Chain Management

Professor for giving us the guidance and help in grasping the theoretical concepts of the

subject and helping us in applying them practically in the Real Life Project at FedEx

corporation, India.

We are also indebted to Mr. Hemanth D. P., Country Manager – Sales, FedEx, for taking

time out of his busy schedule, patiently answering our queries and helping us in

understanding the supply chain management processes and practices followed at FedEx-

India.

FedEx Corporation provides integrated transportation, information, and logistics

solutions through a powerful family of companies that operate independently yet compete

collectively.

The FedEx Family:

FedEx Corporation, a $20-billion global enterprise

FedEx Express, the world's largest express transportation company

FedEx Ground, North America's second-largest provider of ground small-package

delivery offering a new service -- FedEx Home Delivery

FedEx Freight, a leading provider of regional LTL freight services

FedEx Custom Critical, the world's largest surface expedited carrier

FedEx Trade Networks, a high-tech customs broker and trade facilitator

Vision

FedEx Supply Chain Services will be an acknowledged world leader in global

integrated logistics management, supply chain solutions and time-definite delivery.

Our motivated associates will forge mutually profitable partnerships with our

customers using world-class technology and business practices.

In India FedEx follows a V3 strategy:

VISION ---- To connect 95% of the world GDP in 24-48 hours by continuously

expanding our international flight network. The express transportation of goods

from one corner of the globe to another has become a major imperative in

international commerce. Achieving that goal is what our vision network is all

about.

VALUE --- To use short and long-haul surface transportation integrated with our

vast air operations. One of the greatest advantage of value strategy is that it helps

us use our assets more efficiently and provide more value to our customer in

terms of cost.

VIRTUAL --- Virtual strategy is to extend to extend our electronic reach to all

our express customers, enabling them to electronically access markets with little

regard for distance and time. Make FedEx a virtual company, easily accessible to

all our customers and their customers and their customers through system

enhancements

Mission

Achieve success with highly trained and motivated associates.

Design, develop, and apply innovative time-definite, global logistics

solutions which improve our customers' competitive positions and exceed

their expectations.

Aggressively pursue business opportunities to meet and exceed our

earnings and growth objectives.

Values

The culture at FedEx is defined by

The effectiveness of their communications.

The empowerment of their people for peak performance.

Employee pride in performance.

A safe and rewarding work environment.

Their mutually rewarding partnerships with customers and suppliers.

Understanding and valuing diversity.

Focus on our customers and a passion for service excellence.

Conducting business to the highest ethical and professional standards.

FedEx supply chain services

FedEx Supply Chain Services designs, develops, and applies transportation management

and e-Logistics solutions to improve inventory visibility, velocity, and speed to market.

Their transportation management service improves transportation processes and can

increase efficiencies. Their e-Logistics group helps customers compete in today's highly

competitive e-Business channels.

The FedEx network is woven around the complex structure of our country through a

HUB and SPOKE system allowing valued customers flexibility for their choice of routing

vendor resourcement, primary warehousing, distribution, secondary warehousing so as to

ensure minimum inventory holding cost providing the customers with a cutting edge over

its competitors.

BLUE DART

About Blue Dart

Blue Dart Express Ltd., India's premier integrated air express carrier and logistics-

services provider, has been one of the largest Global Service Participants of Federal

Express Corporation, the world's leading air express transportation company, since 1984.

From 1984, Blue Dart represented all FedEx interests, under a principal to principal

arrangement, in India.

Blue Dart-Federal Express Relationship:

Blue Dart and FedEx have determined a new agreement in October 1997 to coincide with

the introduction by FedEx of its first round-the-world flight touching Mumbai, as well as

its direct entry into the country.Under this agreement, Blue Dart is the exclusive provider

of transportation, pickup and delivery, customs and related services for FedEx's

International Priority shipments, as well as the sole preferred consolidator of FedEx

services.The Alliance seeks to leverage the strengths of both organisations for mutual

benefit. While FedEx focuses solely on the development of its international business,

with its link to the vibrant economy of the Sub-Continent, Blue Dart continues to

consolidate its dominant domestic position, and service and enhance its international

customer base as a licensee of FedEx, to support FedEx's international growth. The new

agreement is designed to stimulate the development of India's international express

market by combining the competitive advantages of FedEx's global reach with Blue

Dart's domestic coverage to increase the market share of both companies.

As a technology leader in the business of supply-chain management in the country, Blue

Dart Express Limited recognised the far-reaching scope of the internet in 1996, and has

been exploring web-based solutions to extend the range of services available to its

customers and integrate them into its core products. It has evolved an e-strategy.This e-

strategy encompasses E-Solutions to deliver additional process efficiencies to business by

allowing them access to Blue  Dart's e-shipping tools and integration with its e-business

tools. An individual solution is available for each business, big or small, transacting off

the internet or on the internet, and ranging from a stand-alone to a fully integrated one

The basic tracking solution will enable Blue Dart's customers to track their shipments,

through single or multiple waybills, on-line. Customers can check the status of their

shipments using a waybill number or a reference number. A mail-based solution will

allow the customers to query status of their shipments using e-mail.Registered customers

of Blue Dart can make advanced queries on the status of their shipments, and can keep

track of them for up to 45 days on-line. They can filter their queries by date range, origin,

destination and service, and sort the results on-line. Registered customers can download

the entire waybill tracking data - schedule the download, and select the frequency and the

data to be downloaded. These customers can also generate and download various reports

customised to meet their individual needs.

E-Shipping Tools

These tools are convenient aids to support your shipping management processes:

TrackDartTM:

Track the status of your shipment by using the TrackDartTM box, which is available on the

upper left panel of every page on our website. You may track shipments sent on Blue

Dart services within India or to Nepal, Bangladesh or Bhutan. You may also track

international shipments sent on Federal Express to/from India. Shipments under single or

multiple waybills may be tracked using either the waybill number or the reference

number given at the time of shipping.

MailDartTM :

You may either use the Waybill Number or the Reference Number to track the status of

your shipments. This feature helps you to track Single or Multiple shipments.

To track the status of your shipments by Waybill Number enter the waybill numbers

either in `Subject' or in the text of the mail, each Waybill number seperated by a comma.

To track the status of your shipments by Reference/Order Number. Enter the

reference/order numbers in `Subject' of the mail, each reference or order number

seperated by a comma. Another powerful feature in the MailDart is the Intimate Me

Option. Incase you need to know the status of the shipment upon delivery you only have

to send a mail to intimateme@bluedart.com with Single or Multiple Waybill numbers in

`Subject' or in the text of the mail, each Waybill number seperated by a comma.You will

receive an automated reply giving you a Status Update of the shipment(s) upon delivery.

LocationFinder:

Find the service locations of Blue Dart and the Blue Dart counter or franchisee located

closest to you. You may search by city, street name or pin code to find one of over

11,558 locations serviced in India, or in 211 countries worldwide.

TransitTimeFinder:

Check the transit times for your domestic and international shipments, and for the various

services offered by Blue Dart to help you identify the service that meets your

requirements.

PriceFinder:

Calculate your shipping costs for your domestic and international shipments by using our

Price Finder.

WaybillGeneration: :

The Online Waybill generation tool helps the credit customer to generate a waybill for a

consignment. The user has to enter the details of the consignment and the waybill will be

generated in a PDF format.Another powerful feature in Waybill Generation is the

Address Book. This feature comes with the online waybill generation module. The

Address Book can be accessed by all credit customers of Blue Dart. You can create a new

address list and modify or delete the addresses at any point of time.

COSMATII:

COSMAT II (Computerised On-line System for Management, Accounting and Tracking)

is a complete ERP system indigenously developed by Blue Dart. It interfaces with the

Human Resources Management, Financial Management, Purchase, Sales Monitoring

Executive Information and CRM systems.COSMAT II was constructed in 4 major

modules to cover all the complex processes of the entire organisation. To set up this large

application, various media were used (leased lines, VSAT, Microwave links) on our very

own WAN for effective data transfer between all locations. Barcodes and Scanners were

used for speedier operations. COSMAT II enables easy access to the database over a

wide area network, and ensures reliable information and feedback even in areas that are

afflicted by poor telecom services. All the powerful web-based tools, including

TrackDart, interface with COSMAT II to provide real-time response to customer

requirements. COSMAT II is an evolving system, upgraded continuously, to deliver

value to the customer and make operations easier, more secure and manageable.

SMARTTM :

SMART (Space Management Allocation Reservation and Tracking), is an inhouse

developed state-of-the-art technology system, which allows real-time space and revenue

management on the Blue Dart Aviation network. It ensures that the aircraft is filled

profitably, and that all customers with space confirmed on the aircraft have the assurance

that their packages would travel.SMART dovetails into COSMAT II leveraging on the

infrastructural strength of the system. This ensures that packages booked on SMART are

picked, moved on the network and tracked until delivery.SMART is built on Oracle

technologies, with the database housed on Oracle 8i (Release 2). This database is hosted

on a Sun Enterprise 3500 server, a fully redundant, zero reboot system.

ShipDartTM:

ShipDart is a Blue Dart proprietary solution especially created for the convenience of

regular customers. ShipDart enables user control over the entire shipping and tracking

processes. ShipDart needs to be installed at the customers premises in order to interface

with their own system for the pre-shipping and post-tracking activities, thereby playing a

major role in bridging the existing gap in any package movement. A set of Master Files

which controls the ShipDart system has to be downloaded from the site.

 

CustomisedSolutions:

Blue Dart has delivered customised solutions to various industry segments such as

Finance, Pharmaceutical, Consumer Durables and Information Technology, among

others. These solutions integrate closely with the legacy systems of the business and

enable them to accelerate their processes and provide them with effective MIS.

E-Business Tools

These tools may be efficiently integrated with your systems to provide you with a

convenient and cost-effective solution to your shipping requirements.

Blue Dart has been the only Indian Air Express Company that has invested extensively in

Technology infrastructure to create differentiated delivery capabilities, quality services

and customised solutions for the customer.

InternetDartTM:

Track on-line the status update of your shipments sent over the last 45 days. You may

track by a range of dates, origin, destination, delivered or undelivered shipments or

service used, on-line. You may generate a series of reports, at a pre-determined

frequency, and sort the results on-line.For on-line queries and reports: on providing the

input of range of pickup dates, origin, destination and services used, you can check any of

the following, on-line: 

Waybill details and status of all shipments sent during a given period

Details of all delivered shipments

Status of all undelivered shipments

Details of all RTO (Return to Origin) shipments

Details of all Re-directed shipments

ShopTrackTM:

ShopTrackTM is an API (Applications Program Interface) designed specifically to support

and enhance the services provided by a portal or any e-business. Research indicated that,

while etailers provided an entire gamut of product services and information, eshoppers

invariably had to leave the website or use manual means to track their purchases. The

result - less eyeball time on their pages. Portals that sought to resolve this dilemma were

faced with the unattractive alternative of database maintenance and call centres.

ShopTrackTM provides an effortless, customised solution. Customers no longer have to

leave the Portal site to track their purchases. They just need to enter the order-number of

their purchase and the shipping and delivery details are displayed on the same page. The

Portal can decide how to display the data elements and may even store them in their

database. ShopTrackTM is another time and cost-saving tool created to arm Blue Dart's

customers with a competitive edge.

PackTrackTMs:

PackTrackTM is an API (Applications Program Interface) designed for any client involved

in logistics, distribution and inventory control. It has been designed to streamline and

integrate shipping processes. PackTrackTM can be integrated into the client's systems and

enables him to keep track of the entire distribution status of all his customers. It is simple,

easy-to-use and can be easily integrated with any windows-based application or any Java

compliant machine. Queries are fetched immediately from Blue Dart's database,

providing a seamless service for the client and his customers, and bringing the entire

chain within his domain. The client may store this data in his database, providing him

with an effective CRM tool.These e-Business tools, the first of their kind in the country,

bring increased efficiencies to most B2C, B2B and C2C transactions.

Both ShopTrackTM and PackTrackTM provide the following : 

On-line, real-time status details of the waybill number

On-line, real-time status details of all the waybills linked to an order number 

Results in either XML, TEXT or HTML formats 

Supports JSP & ASP

MobileDartTM:

MobileDartTM - WAP works on any mobile phone or device which supports Wireless

Application Protocol. Using MobileDart-WAP, the customer can check the current status

of his shipments on-line by entering the waybill number. In the case of an undelivered

shipment, he can choose to receive delivery details by email or SMS. The customer can

also access the Location Finder which provides details about all locations service by Blue

Dart, based on a pincode. Information about all the Service product offerings as well as

the company is also available on the WAP site (wap.bluedart.com). This enables the

customer to make a shipping decision on the run.MobileDartTM - SMS works on any

mobile phone or device which supports sending email over SMS (Short Messaging

Service). This service provides two tracking features - current status of shipments

forwarded, and automated intimation on delivery of the shipment. To know the current

status of his shipment, all the customer has to do is to send a message to t@bluedart.com,

followed by the waybill number. MobileDart-SMS will respond with the current status

details. To receive an automated advice when a shipment is delivered, the customer just

sends a message to i@bluedart.com followed by the waybill number. An intimation will

be received by the customer as soon as the shipment is delivered.

The country's only express airline with a fleet of three Boeing 737s ensured that packages

were flown to their destinations overnight. Another tremendous advantage was that the

individual size of packages that could be carried multiplied manifold.

Retrieval of signed delivery records posed the industry's most intriguing problem. Blue

Dart was quick to understand this requirement and put in place a 100% retrieval system.

Blue Dart not only handles large volumes and oversize packages overnight - it also

provides the industry with status of their shipments and retrieves such records as are

necessary for billing. The entire cycle has been considerably shortened, enabling the

industry to achieve healthy bottomlines.

 

State-of-the-art Technology, indigenously developed, for Track and Trace, MIS, ERP,

Customer Service, Space Control and Reservations.

Blue Dart Aviation, our express airline, to support our time-definite morning deliveries

through night freighter flight operations.

 

A countrywide Surface network to complement our air services.

Warehouses at 14 locations across the country as well as bonded warehouses at the 4

major metros of Kolkata, Delhi, Mumbai, and Chennai.

ISO 9001 countrywide certification by Lloyd's Register Quality Assurance for our entire

operations, products and services.

Ecommerce B2B and B2C initiatives including partnering with some of the prime portals

in the country.

Our Competitive Advantage lies in:

Our vast and unparalleled Domestic Network:

Linked by some of the most advanced communications systems and positioned to

offer a consistent, premium, standardized quality of service.

Our Customs and Regulatory expertise A spectrum of services to provide

customized solutions:

.We are the only express carrier in the country today which offers an entire range

of services that extend from a document to a charter-load of shipments. Our

services are relentlessly monitored to deliver a net service level of 99.95%.

We have a dedicated team of specialists who provide the expertise for customs as

well as regulatory clearances at all States within the country, to support seamless

service to the customer.

Our Technology:

Designed to enhance the reliability of our operations and process efficiency, and

add value to the customer through time and cost savings.

Our Air Network:

The only one of its kind in the country today, that is focused on carriage of

packages as its prime business, rather than as a by-product of a passenger airline.

Our express airline is self-sustaining, with its own bonded warehouses, ground

handling and maintenance capability.

Our financial credibility :

Fitch Rating India Pvt. Ltd. has assigned the highest "Ind D-1+" (Ind D One Plus)

rating for our commercial paper programme of Rs. 15 crores.

Our Peopleforce:

Committed, diverse and 4,010 strong, are our most valued asset. All our

achievements have been possible because we have a team who believes in

themselves and their company, a team with a winning attitude. We are a learning

organization, we value self-development, and most of our managers are

homegrown.

THE FEDEX SUPPLY CHAIN

A supply chain is a network of sub-suppliers, suppliers, internal operations, trade

customers, retail customers, and end users. Supply chain management is a loop that starts

with the customer and ends with the customer. It requires looking at your business as one

continuous process that absorbs such traditionally distinct functions as forecasting,

purchasing, manufacturing, distribution and sales, and marketing into a continuous flow

of business interaction. Under this the functional ‘stove pipes’ of corporate activity are

replaced by departments structured as a pipeline that stretches between a company’s

suppliers and its customers.

Integrated supply chain management is a process-oriented, integrated approach to

procuring, producing and delivering products and services to customers. ISCM has a

broad scope that includes sub-suppliers, internal operations, trade customers, retail

customers and end users. ISCM covers the management of material, information and

funds flow.

Supply chain management is the logical progression of developments in logistics

management. Physical distribution management integrated two functions, providing

inventory-reduction benefits from the use of faster, more frequent and especially, more

reliable transportation.

Second phase in SCM’s development, the logistics stage saw the addition of the

manufacturing, procurement and order management functions. This was aided by

electronic data interchange, worldwide communications, and the growing availability of

computers to store data and perform analyses.

The third and current stage is the integrated supply chain management stage. To the

lengthening chain of functions being integrated, suppliers at one end and customers at the

other have been added. This has become a seven-function supply chain, vastly more

complex than the two-functions physical distribution chain. To handle this complexity,

we rely on electronic data, electronic funds transfer, higher bandwidth communications,

and computerized decision support systems for planning and for execution. Training is a

key component too.

The next phase of supply chain management, super supply chain management for want of

a better term will incorporate more functions such as product development, marketing

and customer service. It will be enabled by even more advanced communications, better

and more user-friendly computerized decision support systems and increased training.

Factors shaping supply chain management

From the many factors potentially involved,it is believed that six business and economic

forces will most impact future supply chain management.These include the three external

factors:consumer demands,globalisation and information/communication.Three

additional topics that will be critical to future supply chain design:competition,regulation

and environmental concerns.Though other factors,for example, organized labour and

transportation technology may play a role they will be secondary in defining supply chain

management’s future.

FedEx in India has five flights a week coming to its Mumbai gateway (no flights on

weekends).These flights come from the eastern hub and the western hub of the FedEx

corporation.

In India the FedEx corporation’s activities are governed by the DGCA rules (which

requires a minimum cooling period for 24 hours for unaccompanied goods on flights,

quota restrictions on the movement of certain goods within the country, transshipment

not allowed because of custom laws etc.) Using its alliance with Blue Dart, the

compliance aspect is left to Blue Dart to fulfill.

FedEx purchases from suppliers in two primary ways:

Centralised purchasing--- a process with contract/business agreement formats

executed by supply chain specialists at headquarters for the various divisions

within FedEx. Centralised purchasing is most often used for high dollar value

goods and services.

Decentralised purchasing--- a process at regional and local levels throughout

FedEx all over the world. Decentralised purchasing is generally used for readily

consumable commodities of small dollar value.

If we look at the supply chain of Fed Ex in India we see that their suppliers are

Indian Oil for providing fuel for its aircrafts which lands in Mumbai.

Khambatta Associates for doing all the ground handling work

Jinnah & Associates for custom clearance.

Stationery ( memos,notepadsetc) are bought from local suppliers

Advertising ,PR and direct marketing functions are outsourced to various

agencies.

Blue Dart handles collection,distribution ,transportation and logistics in the

country for FedEx

Software supplied by FedEx,USA.developed inhouse.

The customers of FedEx in India are

Leather exporters

Garments exporters

Brass exporters

Marine products exporters

Gems and jewellery exporters , and

Other exporters of the top ten export items

Transportation and Logistics Management

Transportation choices in the supply chain

Transportation is the linkage process in logistics and often consumes much of the

resources provided to the logistics function. It once dominated the distribution activity

but for most companies it is now integrated into an overall activity. There are three

factors that need to be considered. Operational factors include customer, environmental,

product and company characteristics. The choice of transport mode is influenced by load

size, density, value, competitive necessity and cost structures. Channel strategy

considerations include the identification of available channels and the interfaces within

each channel.

Transportation with facilities creates time utility value in the supply chain. The

extent of this will be part of the decision making process. Clearly, there are a number of

options available: the decision on which one to use will be based upon a number of

factors. Transportation also creates place utility value by delivering product to locations

that are convenient for customers.

Transportation accounts for the largest resource commitment in the logistics activity,

therefore its relative cost/benefit profile must be established within the context of the

level of customer satisfaction that is being set as an objective. There are a number of

interface areas and therefore decisions shared by transportation. These should be explored

by first identifying the areas of flexibility and inflexibility of the decisions and most

importantly that of the customer service objectives. The decisions influenced by

transportation considerations include:

Customer communications

Market coverage

Sourcing decisions

Processing/manufacturing

Customer service decisions.

There are five factors which should be considered in the choice of transportation

o Company characteristics and philosophy-- These are important and

concern the company’s marketing, financial and operations strategies

o Market structures-- are important considerations. There are two factors:

competitive structure and the geographical structure or territorial

considerations. In fiercely competitive markets delivery may be one of the

key factors influencing customers selection of suppliers.

o Product characteristics-- to be considered are weight, size and shape,

robustness, shelf life, potential danger, value and special characteristics,

which may require expensive handling services and equipments.

o Customer characteristics-- have an impact on profitability. Often it is

those characteristics which may influence delivery costs that are important

as to whether or not a customer is profitable to the business.

o Environmental issues-- can influence a transport mode decision in a

number of ways. In its broadest scope environment can be taken to include

government and its influence on transport policy.

The concept of trade-off possibilities and potential for overall costs is important

within the transport decision. There are three that should be considered.

Horizontal Trade-offs--occur within and between the different transport modes,

which could be selected to perform the same task, such as air versus sea, or road

versus rail.

Vertical trade-offs--Occur where a change takes place in a transport activity and

offers a greater benefit in another area of the logistics function or the organization,

such as markedly improved productivity due to an infrastructure development.

Lateral trade-offs--occur where transport costs can be weighted against lower costs

in other areas. Using express freight services may increase the freight cost but reduce

the need for distribution centers or high inventory building.

FedEx combines people and technology to optimize cost and service. Their

transportation management service combines sophisticated information

technology with human resources to improve the inbound and outbound

transportation processes of their customers. Their service simplifies carrier

selection, improves logistics management, and offers cost savings opportunities.

They streamline transportation management by providing a single point of

contact for all of a customer's shipment and delivery needs. A team of dedicated

coordinators is assigned to each account. Clients order service via electronic

data interchange, the Internet, phone, or fax. They identify the carrier that will

provide the lowest cost and best service for a customer's shipment. Then, a

coordinator alerts the selected carrier and dispatches a vehicle. The result is a

simplified, cost-effective process for managing transportation and inventory

carrying costs.

Here's what your company can expect from their transportation management service:

Transportation Savings. As a result of their carrier network and superior

technology, they offer transportation savings opportunities to their

customers.

Discipline & Control. They identify delivery dates; then, they determine

the right mode of transportation for each shipment. In addition, they audit

carrier compliance to their customers' specifications.

Convenience. They audit your freight bills and allocate charges to the

appropriate accounting code within your organization. In addition, they

offer the opportunity to reduce administration costs through electronic,

paperless invoices.

Information. They capture complete data about your company's

shipments and provide useful management reports to further improve your

transportation process.

Integrated Logistics

Increase inventory visibility and velocity with integrated logistics.They combine

knowledge and technology to integrate transportation management service with:

order management

fulfillment

kitting and parts sequencing

supply chain consulting and design

returns management

Their customers can benefit from improved operating efficiencies, increased flexibility,

and improved inventory visibility and velocity.

e-Logistics

The components of FedEx e-Logistics (web enablement fulfillment, returns

management) can be implemented individually to address the specific needs of supply

chains. They can also be configured in a number of ways to create an integrated solution

that works hard to speed entry into the digital marketplace, enhance inventory visibility

and velocity, and improve cutomer service and relationship management. From a simple

channel to a complex supply chain. From small e-tailers to manufacturing suppliers. The

flexible, scalable, and configurable FedEx e-Logistics package can help you

compete.and win.

Enablement

he front-end of your e-commerce operation is a critical component of your online

channel. Many companies choose an outside vendor for creating their web sites, only to

find they deliver partially. Often, the firm is ultimately focused on the look-and-feel,

brand-building aspects of the site, and ignores the potential for optimizing the customer’s

experience and building loyalty. The Enablement component of FedEx e-Logistics

includes:

Customer Relationship Tools that can provide customer interaction

histories. This valuable information can easily be transformed into

powerful, personalized sales programs.

On-Line Inventory and Order Information — access that can tell customers

if an item is out-of-stock and suggest an alternative.

24 x 7 Customer Support that can help close sales with customers.

Current technologies include pop-up chat windows, e-mail, and Internet

voice solutions.

E-Fulfillment

A sale is a promise. A well-run fulfillment operation is how you keep that promise.

Internet operations that have withstood the test of time are the ones that have backed up

superior front-end interfaces with equal — if not stronger — back-end fulfillment

infrastructure. FedEx e-Logistics offers eFulfillment solutions that include:

Distributed National Warehouse Network that can provide a fast,

flexible, and cost-efficient alternative to company-operated warehouses.

Integrated Information Systems that can allow high-volume picking and

packing with maximum speed accuracy.

Customer Service Support Networks that can ensure your customers have

someone to talk to about their orders 24 hours a day, seven days a week.

Flexible and Scalable Structure, which means your solution can be

adjusted to meet specific needs.

CUSTOMER SERVICE IN THE SUPPLY CHAIN

Efficient Consumer Response refers to the situation that makes the consumer the hero by

providing better service to customers at lower cost, fewer stockouts and new products

they want. Consumers will get a better deal overall. All this is done through control of

information and product form the point of manufacturing to the point of sale, with the

intent of eliminating waste and reducing cost cross an entire distribution pipeline. With

ECR the entire pipeline is driven by scanned data at the point of sale. Replenishment

orders are communicated via EDI to direct store delivery to retail distribution centers to

wholesaler / distributor and to the manufacturers.

This ensures that the right amount of product is delivered in a timely fashion, eliminating

unnecessary inventory in the pipeline, eliminating stock outs and also eliminating the

need for each pipeline participant to conduct its own forecast. In essence, ECR makes it

possible for participants in a distribution pipeline to substitute information for inventory.

The benefits to them are increased product velocity and the competitive benefits of

significantly lower costs.

In Delhi, FedEx has a 24 hour call center (6285911) wherein the customers can

call and make an order for pickup and delivery. FedEx assures a maximum 1 hour

response time for pick up. The customer is expected to package the goods to be

sent himself.

Also after the pick up has taken place, a one-hour time for doing the necessary

paperwork is required.

Following this a maximum of 6 hours processing time is needed at the airport for

bagging, tagging, foreign exchange remittance, security check, clearance, etc.

Thus keeping in mind the time for departure of flight and all this time required, FedEx

works backward to ensure that the product is picked and delivered on time.

For achieving this FedEx has a call cutoff time after which they stop

taking calls for that particular day

They have a office cut off time after which paper work by the office is not

done.

And they have at ramp cutoff time after which a package is not taken to

the airport(this is the time required to balance the aircraft and to secure the

goods to it.)

However the adjustments to these rules can be made depending on the proximity of the

customers to the office or his volunteering to drop off the package at the airport, etc.,

FedEx has segmented its customers by

By analysing large scale databases available with Blue Dart and the various

export promotion councils.

By segmenting Businesses based on their industry of operation and design of their

supply Chains.

On the basis of the customer service needs in the Asia Pacific region and the

inputs required for it.

FedEx has certain service quality standards and levels laid\d down and these are

strictly adhered to. These are the net service levels(NSL) and the service quality index.

(SQI). Exceptions to this rule are followed only in the case of acts of God / nature beyond

the control of man. The various “ perfect order” busters are:

right day late

wrong day late

partial delivery

inner content damaged

goods lost, etc.

Depending on the gravity of the act, certain points of non- conformance are deducted for

each of these busters. Every unit of FedEx has been allowed a certain maximum tolerance

limit for non-conformance within a stipulated time period beyond which the unit is

penalized for non-conformance.

FedEx holds internal meets to measure and constantly upgrade its service levels. For this

it has appointed a customer advisory board that keeps receiving feedback from its

customers. Also FedEx sometimes out sources its customer’s satisfaction survey to an

agency or to an anonymous freelancer to carry out the survey without biasing the

customers towards the FedEx name.

The FedEx Transportation management service combines sophisticated information

management technology with human resources to improve the outbound and inbound

transportation processes of t s customers. Their service simplifies carrier selection,

improves logistics management and offers cost savings opportunities. They streamline

transportation management by providing a single point of contact for all its customer’s

shipment and delivery needs. A team of dedicated coordinators is assigned to each

account . Clients order service via EDI, the internet, phone or Fax.. The FedEx identifies

the carrier that will provide the lowest cost and the best service for a customer’s

shipment. Then a coordinator alerts the selected carrier and dispatches a vehicle. The

result is a simplified, cost effective process for managing transportation and inventory

carrying costs. FedEx audits carrier compliance to their customer’s specification.

Returns Management

Many companies are in denial about returns. Some studies show that return rates can be

as high as one out of three products in some industries, and that can radically impact the

bottom line. Commitments to customer service and sound inventory management require

a plan for retrieving, monitoring, and processing returns with minimal customer

inconvenience and inventory depreciation. FedEx e-Logistics offers solutions that

include

Automated Returns Shipping Labels with a bar-coded Returns

Management Authorization (RMA) number for automated sorting of

returned packages.

Online Tracking for real-time monitoring of the returned shipment’s

location.

Multiple options for returns handling flexibility, including: pickup at

customer location or drop-off at multiple access points, and courier

generated shipping labels or customer-generated labels.

Customers are demanding more from you. And key stakeholders are counting on you to

protect your company’s financial and brand equity.

Information Technology:

FedEx is now one of the best positioned companies to assist its

The tracking technologies pioneered by FedEx have dramatically improved the amount of

data that can be transferred and the success at which data are accurately collected. These

developments--- creating the ability to get real time feedback about the movement of

goods from raw materials stage to the point of final sale--- have served as a critical

foundation for the implementation of ‘just in time’ manufacturing, supply chain

management and other business models that address the productivity challenges

businesses have faced for years

Consulting

We offer both strategic and tactical supply chain consulting service.

With a staff of experts in supply chain analysis and design, we offer supply chain

network and process design consulting services, backed by tactical and operational

services. The right mix of strategic and tactical service can lower costs and improve

service for our customers.

Our consulting service begins with an analysis of current supply chain processes. We

define the scope of a customer's needs, map the customer's existing supply chain, and

analyze current supply chain data.

Next, we compare existing supply chain performance against available industry data.

Benchmarking data helps us model various supply chain scenarios and identify

opportunities for improvement.

Finally, we help customers understand alternatives and suggest an optimal

supply chain solution.

LEARNINGS

1) One of the most important lessons learnt while doing this course in general and

the real life project in particular is that for any business, customer is the most

important component and the very reason for existence for the business. But most

companies tend to forget it. Proper Supply Chain practices help in serving the

customer better and more efficiently with huge cost savings for the company

which ultimately translate into operational profit for the company.

2) There is a lot of difference between the way a world class company like FedEx

operates and the way other companies operate. Their processes are more or less

directed towards customer satisfaction and the company goes out of the way in

trying to satisfy its customer needs wherever it is necessary.

3) FedEx undertakes Customer Relationship Management programmes and it pays

back because they have got very loyal customers which give them business

continuously year after year. All through this project we have learned that this is

one of the most important things for companies to follow because as someone

rightly said that the cost of acquiring one customer is much more than the cost of

retaining a customer. So this saying was reinforced in our minds looking at the

world-class customer service levels that FedEx provides.

4) Just keeping up to its promises is not enough for a company. It must constantly

innovate and develop new products and means to satisfy its customers. To be

ahead in this dimension FedEx has employed a strong force of 5000 full time

software developers. Also it constantly advertises through associating itself with

occasions that are synchronous with its mission i.e. The Formula One Racing