FeDex Supply chain management

1. Supply Chain
Management at FedEx

2. Started by Frederick Smith in 1971
 FedEx Corporation, originally known as FDX Corporation, is an American global courier
delivery services company headquartered in Memphis, Tennessee.
 It is a major player in the package delivery market and a direct competitor to global leader,
United Parcel Service (UPS).
 The name "FedEx" is a syllabic abbreviation of the name of the company's original air division,
Federal Express, which was used from 1973 until 2000.
 Products-Post delivery, express mail, freight forwarding, third-party logistics
 FedEx Corp. provides customers and businesses worldwide with a broad portfolio of
transportation, e-commerce and business services.
 FedEx Supply Chain provides integrated solutions to help supply chain management become a
competitive advantage for customers.

3. • Started in 1971, to facilitate overnight
delivery of document through
airfreight system directly to the
customers at affordable costs
• FedEx over a period of years
differentiated itself by having state of
the art infrastructures with
technologically advanced automation
• Offers variety of services including
warehouse management, inventory
management, transportation and
logistics managements to name a few
• Serves more than 220 countries
• Delivers ~3.6m shipments each day
FedEx Portfolio
The journey
Headquart
er:
Memphis,
Tennessee
FedEx Services integrates the
technology and services customers
need. It includes solutions for global
supply chains, e-commerce, or any
of today’s business challenges
FedEx Express covers every U.S.
street address and services more
than 220 countries and territories.
Provides time-sensitive, air-ground
express service through 375 airports
worldwide
FedEx Ground gives customers
dependable business-to-business
delivery or convenient residential
service. Also includes FedEx Smart
Post
With extensive coverage in U.S.,
Canada, Mexico, and Puerto Rico
FedEx Freight provides LTL choices
based on customers’ shipping needs
Background: About FedEx

4. FedEx International Flight Network
Found in 1971
Worldwide: Memphis, Tenn.
Asia Pacific: Hong Kong
Approximately 3.5 million packages daily
670 aircraft
More than 141,000 employees worldwide

5. FedEx: Robust Network
Hong Kong, China, Toronto,
Ontario, Brussels, Belgium, Dubai,
United Arab Emirates and Miami
750 Worldwide delivery centres
1775 Office Drop-off Locations
6300 Authorized Shipping Centres
38,500 Drop Box Locations
10 Express Air Hubs
Operations at more than 375
Airports
Operations at more than 1,240
647 Aircraft in use
47,500 Motorized vehicles

6. FedEx Model
Customers take packages to a FedEx Office where the package is weighed and labelled. Alternatively, they can print out
smart labels from fedex.com and schedule a pickup when a delivery truck is in the area or drop the package in a local
drop box
At designated times, all of the accumulated packages from a given location travel, usually by truck, to a local
or regional sorting/distribution facility. If packages are destined further than 200 miles, they travel by air.
Otherwise they travel by truck to the local receiving sorting facility

7. FedEx Express Operations
 Fed Ex Express delivers packages to every address within the United States.
 International Express is guaranteed to more than 220 countries and
territories.
 In 1994, Federal Express officially became FedEx.
 Fed Ex gained authority in 1995 to be the sole U.S. based, all carrier in
China, with aviation rights to the worlds most populated nation.
 Fast delivery
 Overnight deliveries
 International overnight market

8. FedEx Five-Point Strategy
 Improve Service Levels
 Lower Unit Costs
 Establish International Leadership and Sustain Profitability
 Get Closer to the Customer
 Maintain the People-Service-Profit

10. Supply Chain Management
1) Collection –
Pick up the package from home.
Pick up the package from sorting centre
2) Scanning –
Scan the package from a portable device which is interfaced with the central system
Checking details of product using volume and weight calculator
Manual segregation of Un-sized and un-read packages.
3) Transportation –
From home to hub/ sorting centre
From hub to jet
From jet to destination
4) Delivery –
Delivery of package to their destination.

11. Customer Management
 In time delivery to the destination
 Safe and secure delivery
 Continue monitoring of the flights and the package status
 Availability of current status of package to customer
 Providing high customer satisfaction

12. DISTRIBUTION SYSTEM OF FEDEX
 FedEx offers rapid, time-specific delivery to 211 countries.
 establishment FedEx Express Distribution Centers(EDCs) in 11 countries
across Asia.
 Intra-Asia overnight delivery through the FedEx AsiaOne network, launched
in September 1995.
 logistics services are also linked to FedEx's other global networks through
direct flights.
 Internet shipping software, the FedEx interNetShip.
 Streamlined distribution.

13. FedEx transportation Service

14. FedEx RDC Operation

15.  Low Risk/Low Cost Start Up
 Variable Costing
 No Capital Requirement / People Obligations
 Global WMS/Warehouse Management System maintenance
 Supply & Delivery Chain Management
 Total Inventory Visibility
 Facility/manpower/equipment cost saving
 Convenience and Reliable
FedEx RDC Benefits

16. Integrated Information technology

17. Information systems used are
 Transaction Process System(TPS)
* Scanner
* Volume and weight calculator
* Price Tracking system.
* Destination locator
* Package Handling and controlling system at airport.
* Segregator.
 Management Information System(MIS)
* Continue monitoring of the flights and the package status and updating
* Help middle level manager to coordinates the arrival of trucks and monitors
airport and airplane conditions based on data provided from TPS

18.  Decision Support System(DSS)
* What would happen if delivery become late for some hours or days?
* What would happen if sorting stopped because of any reason for one day?
 Customer Relationship Management System(CRM)
This provide information to coordinate all the business processes which deal with
customer. This helps in:
- Firms identity
- Attract and retain most profitable customer
- Better service to existing customer
 Knowledge Management System(KMS)
Better performance than other because having better knowledge about how to
create, produce and deliver the product and service

19.  Enterprise system(ERP)
To integrate the business processes in manufacturing and production,
finance and other functional areas into single software system.
 Executive Support System (ESS)
- To turn the data provided from the TPS and MIS into useful summarized reports.
- This reports can be used by executive level managers for quick access to reports
coming from all FedEx levels and departments such as billing, cost accounting,
staffing, scheduling, and more.

20. Technology supporting to stream line process
FedEx uses a variety of technology tools to streamline operations and complement infrastructure
• Fedex used Customer Operations Service Master Online System (COSMOS) to track
packages. This system used by employees, customers to track the shipments online. This is the
backbone to handle millions of transactions and smooth operation execution
• To ensure safety of the packages and timely delivery for the customers, Global Operation
Control Centre (GOCC) was used to trace trucks and aircraft movements
• GOCC also provided weather information to trucks and aircrafts so that accidents are avoided
and reliable services are provided
• Digitally Assisted Dispatch System (DADS) provided information to the delivery and pickup
agents’ information about the exact delivery and pickup locations. It helped them to plan their
route and ensured shorter time duration for the activity
• Automated Sorting Tracking Route Aid (ASTRA) provided accurate delivery information so
that packages can be sorted and dispatched to the right destination

21. FedEX: Transportation management services
• FedEx Transportation Management is an outsourced solution that offers end-to-end
transportation management: optimized, multi-modal, and door-to-door
• A single point of contact for all transportation needs
• It leverages the FedEx family of companies (along with a select group of core carriers)to help
customers improve operational efficiencies and customer service
• Transportation Management works with the customer to determine optimal shipping modes,
minimize recovery needs, facilitate claims management, and provide consolidated reporting
and invoicing
• Fedex also provided additional related services like custom clearance, insurance, trade
consulting through their subsidiary companies
• Suitable for large, complex transportation projects that require orchestrated worldwide
deliveries.

22. FedEx makes diverse shipping modes available
• Express — same day or next day.
• Standard — surface transportation.
• Domestic.
• Dedicated and time-critical.
• Commercial airfreight.
• Ocean freight.
• Saturday collections and deliveries.
• Value-added collections and deliveries.
Benefits
• Enhance customer service - shipments managed to
meet individual distribution requirements
• Optimize transportation costs - choose optimal
overall transportation solution from FedEx
companies and core carrier networks to reduce
costs
• Reallocate resources - refocus your time and
money on core competencies
• Improve inventory management and production
planning

23. FedEX: Integrated order fulfillment services
Benefits to the Customer
• Helps cut overhead costs by outsourcing warehouse and software needs and providing a variable fee structure
• Limits investment and risk if you're entering new market segments
• Inbound and outbound order fulfillment services including, picking, packing, shipping and
delivering the goods
• Fulfilment Services is an integrated, end-to-end, supply chain offering. Incorporating turnkey
solutions, these services are modular and scalable - allowing the customer to design and
configure solutions to meet specific needs
• Online catalogue design and online marketing initiatives to promote new sales
• Inventory Forward Stocking Location replenishment
• Order picking by serial number, lot number and expiration date
• Order consolidation
• Customs clearance
• Cross-docking and kitting
• Preparation of international paperwork
• Specialized packaging and labelling
• Customized Web solutions for end customer order entry and
• Visibility

24. THANK YOU