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FedEx
Structural transformation
through e-business
What is Logistics?
Major Players
Porter’s Five Force Analysis
Supplier Power
New Entrants
Substitutes
Buyer PowerCompetitive Rivalry
• Alternative for Fuel- rising
fuel prices are often passed
on.
• large pool of suppliers exists-
suppliers have little power
over the Industry
• Entry Barriers are low,
• Brand equity of Fedex poses
highest barrier to enter.
• Buyers have multiple options
, demand for high quality
and timely service but at low
costs.
• Buyer power is high
• Low threat- Info movement
instead of fright movement
has become possible due to
better available IT
• Contracts are short term,
unless integrated
• Fixed costs are high
• Constant need to reduce
order cycles
• Term paper to 45 Billion Dollar Creation
• 186 to 5,000,000
• Began operations in 1973
• Uses Super tracker Computers
• First to input COSMOS (Customer Operations
Service Master On-line System) in their system
• Founder Fredrick W Smith
• Headquartered Memphis, Tennessee
About FedEX
Blue Ocean Strategy
• Quick to adopt new technologies in the logistics
industry
• They were successful in interconnecting and
then distributing the information.
• Businesses began to outsource supply chain
management to FedEx and this led to
partnerships.
• FedEx provided greater automation to its
customers
Logistics of FedEx
IT in FedEx
• Widespread use of Internet threw
open significant opportunities
• Existing EDI based system and decided to use a
combination of Internet and the EDI.
• Used IT to improve upon its customer service
• Integrates both old and new technology
IT in FedEx contd…
• Integrates Wireless Solutions, Bluetooth, and
RFID
• Use of Package Scanning and Package Tracking
• Use of Microsoft Powerpad and Bluetooth
• Adoption of Velcro Wristband RFID
transponders
COSMOS of FedEx
Short Video
Thank you

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ITM Presentation on FedEx

  • 1.
  • 5. Porter’s Five Force Analysis Supplier Power New Entrants Substitutes Buyer PowerCompetitive Rivalry • Alternative for Fuel- rising fuel prices are often passed on. • large pool of suppliers exists- suppliers have little power over the Industry • Entry Barriers are low, • Brand equity of Fedex poses highest barrier to enter. • Buyers have multiple options , demand for high quality and timely service but at low costs. • Buyer power is high • Low threat- Info movement instead of fright movement has become possible due to better available IT • Contracts are short term, unless integrated • Fixed costs are high • Constant need to reduce order cycles
  • 6. • Term paper to 45 Billion Dollar Creation • 186 to 5,000,000 • Began operations in 1973 • Uses Super tracker Computers • First to input COSMOS (Customer Operations Service Master On-line System) in their system • Founder Fredrick W Smith • Headquartered Memphis, Tennessee About FedEX
  • 7. Blue Ocean Strategy • Quick to adopt new technologies in the logistics industry • They were successful in interconnecting and then distributing the information. • Businesses began to outsource supply chain management to FedEx and this led to partnerships. • FedEx provided greater automation to its customers
  • 9. IT in FedEx • Widespread use of Internet threw open significant opportunities • Existing EDI based system and decided to use a combination of Internet and the EDI. • Used IT to improve upon its customer service • Integrates both old and new technology
  • 10. IT in FedEx contd… • Integrates Wireless Solutions, Bluetooth, and RFID • Use of Package Scanning and Package Tracking • Use of Microsoft Powerpad and Bluetooth • Adoption of Velcro Wristband RFID transponders