The Operation Management Of Fedex Information Technology Essay

The Operation Management Of Fedex Information Technology EssayFedEx is the worlds largest comport raptus telephoner founded in 1971. Revenues in fiscal year 2008 were $38 billion and a net income of $1.13 billion. There atomic number 18 more than 280,000 employees worldwide, military suffice 210 countries and 366 airports worldwide, with 657 aircraft. The ground vehicle fleet computes 43,500 worldwide. There argon 44,000 fly boxes, 2400 FedEx merchant vessels sites and 7600 authorized shipping centers. The average share volume amounts to more or slight 3.1 million piece of lands periodical, weighing in at 25.6 million pounds annually. Average daily payload volume is about 7 million pounds per day. This level of task generates more than 500,000 daily calls and 63 million daily electronic transmissions.The home(prenominal) market is currently viewed as mature a The FedEx FamilyFedEx Corporation, a $20-billion planetary enterpriseFedEx Express, the worlds largest exp ress imparting company, this is the overnight courier assists, mainly using aircrafts for postation.FedEx Ground, North Americas second-largest appropriater of ground small- software economy within 24 hours. in the main trucks are used for packages movement.FedEx Freight, a leading returnr of regional less than truckload freight service of processs, trucks are the main transportation systemFedEx Custom Critical, the worlds largest draw close expedited carrier for urgent, valuable or hazardous items, using charted aircraft and trucks.FedEx Trade Net charms, a high-tech customs broker and trade facilitatorFedEx Office, kn bear as Kinkos, scissure a full serve of copying, editing, and printing.FedEx put up Chain Services, a filial of FedEx that provides logistics services, as transportation focusing, critical inventory logistics it offers a portfolio of services that helps twist around supply cosmic string way into a combative strategy. provide chain services at FedEx allow mainly focused on client needs in term of monetary value reduction, metre-definite, and global solutions to modify customers competitive position. In addition to this supply chain services aggressively chase after business opportunities to meet and exceed FedEx earnings and growth objectives.To fulfill those objectives FedEx uses a company culture defined byThe impressiveness of their communications.The empowerment of their pile 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 irritation for service excellence.Conducting business to the highest ethical and professional standards.Supply chainFedEx Supply Chain Services designs, develops, and applies transportation management and e-Logistics solutions to improve inventory visibility, velocity, and hurry to market. Their transportation management serv ice improves transportation processes and apprize increase efficiencies. Their e-Logistics theme helps customers compete in todays highly competitive e-Business channels.The FedEx network uses a HUB and mouth system allowing flexibility in primary warehousing, distri bution, secondary warehousing to hear minimum inventory holding be providing the customers with a cutting adjoin over its competitors.HUBcitycitycitycity lectureDeliveryDeliveryPickupPickupPickupThe HUB and SPOKE systemTo mark connection between the hub and the city charted aircraft and trucks are used, aircraft assure the hub connection. transit and logistics managementTransportation is the linkage process in logistics and often consumes much of the resources provided to the logistics suffice especially with a package delivery process companies like FedEx. It at one snip dominated the dispersion activity but for most companies it is now incorporate into an overall activity. There are three factors that nee d to be considered. in operation(p) factors intromit 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.FedEx combines people and engineering to optimize cost and service. Their transportation management service combines sophisticated schooling technology with human resources to improve the inbound and outbound transportation processes of their customers. Their service simplifies carrier survival of the fittest, improves logistics management, and offers cost savings opportunities. They streamline transportation management by providing a single draw of contact for all of customers shipment and delivery needs. A aggroup of dedicated coordinators is assigned to each account. Clients order service via electronic data interchange, the Int ernet, phone, or fax. They identify the carrier that will provide the lowest cost and best service for a customers shipment via software system bases developed by FedEx. Then, a coordinator alerts the selected carrier and dispatches a vehicle. The guide is a simplified, cost-effective process for managing transportation and inventory carrying be.Transportation accounts for the largest resource loading in the logistics activity, therefore its relative cost/benefit profile must be established within the context of the level of customer rapture 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 number 1 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 includeCustomer communicationsMarket coverageSourcing decisions impact/manufacturingCustom er service decisions.FedEx combines people and technology to optimize cost and service. Their transportation management service combines sophisticated instruction 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 fleck of contact for all of a customers 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 customers 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.Heres what your company tummy expect fro m their transportation management serviceTransportation 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 indeed, they determine the effective mode of transportation for each shipment. In addition, they audit carrier deference to their customers specifications.Convenience They audit your freight bills and allocate charges to the appropriate accounting scratch within your organization. In addition, they offer the opportunity to hack administration costs through electronic, paperless invoices.Information They capture complete data about your companys shipments and provide useful management reports to further improve your transportation process.Customer service in the supply chainEfficient Consumer Response refers to the situation that makes the consumer the champion by providing better service to customers at lower cost, fewer straining outs an d new products they want. Consumers will get a better deal overall. all(prenominal) 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 integral distribution pipeline. With ECR the entire pipeline is driven by s offerned data at the point of sale. Replenishment orders are communicated via EDI to direct store delivery to sell distribution centers to wholesaler / distributor and to the manufacturers.This figures that the right amount of product is delivered in a cliply fashion, eliminating un infallible inventory in the pipeline, eliminating stock outs and overly 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 lowe r costs.ExampleFedEx has a 24 hour call center 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.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 ask at the airport for bagging, tagging, foreign exchange remittance, security check, clearance, etc. holding in mind the time for departure of flight, FedEx works backward to ensure that the product is picked and delivered on timeFor achieving this FedEx has a call cutoff time after which they stop taking calls for that particular dayThey wealthy person an big businessman 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.)Howev er the adjustments to these rules can be make dep ratiocinationing on the proximity of the customers to the office or his volunteering to drop off the package at the airport, etcDHL ExpressDHL is a Deutsche Post World Net company of Germany that provides international Mail, Express, Logistics and Finance. The company was founded in 1969 by Adrian Dalsey, Larry Hillblom, and Robert Lynn.The trio initially provided a courier service between the Continental joined States and Hawaii then expanded the business from there. In 1998, Deutsche Post World Net began to perplex shares in DHL, finally partakeed majority ownership in 2001, and completed the purchase in 2002.DHL owns its own cargo airlines, European Air Transport, originally base in Brussels, and DHL Air, based at the East Midlands Airport in the United Kingdom.DHL is the global market leader in international express, overland transport and air freight. It is also the worlds number 1 in ocean freight and contract logistics. DH L offers a full range of customized solutions from express document shipping to supply chain management.As on 2009, DHL employees have 500 000 employees crosswise the various locations, has 6500 offices, more than 450 Hubs, and Warehouses Terminals, 240 Gateways, and 420 Aircraft, 76200 vehicles, serves more than 220 countries, and make more than 1.5 shipments per YearSupply ChainDHL is completely service oriented therefore it does not have its own material movement, that means it only involves somatic distribution and procurement. procurement also includes the material needed for packaging such as paper, mould trays and boxes, wooden crates, standard containers wraps, plastic inlays etc. The materials or the goods collected from the senders (including papers, documents, physical goods like clothing, household good, chemicals, exotic animals ) are weighed, checked for condition, and depending upon its various characteristics it is packed. The goods are then dispatched to their destinations. There is no value addition to the material itself but it is done to the service which is provided (ex. if there has to be a certain package delivered from A to B the normal services would take about 2 days whereas as a super-fast delivery would be done in about 9 hours)Information coalesce identifies specific locations within a logistical system that have requirements. Information also integrates the three operate areas. The primary objective of developing and specifying requirements is to plan and execute integrated logistical operations. These flows are divided into two major typesCoordination flowOperation flowCoordination flowObjectives Coordination is the backbone of the overall information system, It implies estimating the time requires for collecting the goods from the gateway step of the sender and then estimating the time for the goods to reach the final customer. presage utilizes historical data, current activity levels, and planning assumptions to predic t future activity levels, as for DHL the whole business depends on the vital point of punctual delivery, Based on the distance to the final receiver, the accessibility, the documentations and procedures that need to be handled. They have fine-tuned process of delivery. They can accurately gauge how much time it will take for the goods to reach its end destination.Operation flowThe second feel of information requirements is concerned with directing operations to receive, process, and ship inventory as required supporting customer and purchasing orders. Operational requirements deal with modulate managementOrder processingDistribution operationsInventory managementTransportation and shippingProcurementDHL owns its success for the efficiency with which the operations are carried out. Here not only the company but the sender and sometimes the receiver can track the goods through their information center. They are give a certain password which they can use to trace via online or their customer service helpline.TransportationDHL uses all the modes of transportations that isairwaysroadwayswaterwaysrail freightDHL has its own fleet of airplanes and motor vans. Depending upon the final destination where the goods have to finally reach and the type of package the customer has paid for, DHL uses the individual modes of transport or a combination of either of these or all. Once again the geographical location and how fast the goods have to be delivered are the factors for the final selection of modes of transportation.DHL provides an appropriate logistical solution which helps in reducing the overall cost for the customers.WarehousingTwo type of warehousingBonded Warehousing, provides secure environments, in which customers products can be held, without paying the local taxes.Shared-user Warehousing is a shared-user facility that is intentional to meet the needs of organizations of any size, mainly used, for leading manufacturers and retailers of medical supplies, co nsumer products, industrial equipment, chemicals and technology.Through sharing of DHLs resources, such as space, labor, equipment and transportation, customers benefit from synergies that considerably reduce supply chain costs. Consequently, the customer can increase efficiencies throughout their distribution network and maintain a higher level of service to their customers. semblanceStrategic objectivesHUB and SPOKENature and location of customers, which are matched to the required products and services to be performedOperational flowsprocess-oriented, integrated approach to procuring, producing and delivering products and services to customerslogical progress of developments in logistics managementdirecting operations to receive, process, and ship inventory as required supporting customer and purchasing ordersthe efficiency with which the operations are carried outSupply chain optimizationsuppliers at one end and customers at the otherelectronic data, electronic funds transfereff ective supply chain solutionoperational improvement and inventory digestCustomer serviceEfficient Consumer Responsereducing cost spot PackagingAdd flexibilityAccelerate time to markTransportationMainly Aircraft and RoadwaysAdaptive to market and productAirways, roadways, waterways, rail freightDepends on the packages to transportConclusionFrom the previous analysis both operations management seems to be efficient dependent on the companys philosophy and both are the leading companies in the package transportation and distribution.Bibliographieshttp//www.dhl.com/http//www.fedex.com/http//en.wikipedia.org/wiki/FedExhttp//en.wikipedia.org/wiki/DHL_Express