StudentsGuideline & Training plan

CooperationshipFedEx – University of Applied Science Worms

Join a globally successful integrator and pursue the overall goal of acquiring new skills and work experience. The combination of theory and practice has become an essential part of today`s students daily routine and offers excellent future career opportunities.

IntroductionPurpose and goal of the cooperation

Welcome to the world on time

• Industry insights

• Become part of an globally innovative company

• Gain work experience and experts knowledge

• Excellent working conditions

• Flexible working hours reflecting University requirements

• Participation/lead of small projects

• Develop hard and soft skills

• Networking with specialist in the logistic industry

Student’s benefits

of the cooperation

Expectations of the students

FedEx seeks open-minded students who are flexible, dedicated, communicative and thorough. The fast adapting world of the air cargo industry is a-day-to-day challenge. Quick thinking and understanding of all necessary back round knowledge is and will be essential. FedEx will provide a knowledge framework for the student and increase the intensity of tasks over the cooperation period. The student will be guided by management throughout the cooperation period. This willensure a proper learning curve.

Students are asked to take over a small project after completing the operational modules. Projects can either be initiated by the student himself while processing through the modules or assigned by local management member.

Learning goals and interactive parts

Throughout your duty days and longer intern-ship stays, you will find implemented inter-active parts to combine theory and practice. You can use your written assignments for your internship reports and as guidance in case of obscurities. Once started at FedEx Cologne HUB (CGN HUB), you will be handed an excel spreadsheet with your timeplan for your days at our location.

Please ask our local management for additional information for assignments and tasks.

• Industry insights

• Become part of an globally innovative company

• Gain work experience and experts knowledge

• Excellent working conditions

• Flexible working hours reflecting University requirements

• Participation/lead of small projects

• Develop hard and soft skills

• Networking with specialist in the logistic industry

Definition of logistics management

Logistics management is the governance of supply chain functions. Logistics management activities typically include inbound and outbound transportation management,customs clearance, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inven-tory management, supply/demand planning, and management of third party logistics services providers. To varying degrees, the logistics function also includes customer service, sourcing and procurement, production planning and scheduling, packaging and assembly. Logistics management is part of all levels of planning and execution -- strategic, operational and tactical. It is an integrating function, which coordinates all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology.1

Market leader and inventions

Air cargo plays a crucial role in today’s world. Whether it’s through express shipments providing expedited service, cargo carried in the holds of passenger aircraft linking together businesses across the globe, freighters delivering cargo on high volume trade lanes, or chartered flights providing need-ed supplies on special service schedules, the air cargo industry serves as a key engine of economic growth and development. It supports trade and investment, promotes connectivity, and improves efficiency and competitiveness.2

Introduction to the world of logistics

Rank Airline Millions FTK*

1 FedEx 16,127

2 UPS Airlines 10,584

3 Emirates 10,459

4 Cathay Pacific Airways 8,241

5 Korean Air Lines 7,666

6 Lufthansa 7,218

7 Singapore Airlines 6,240

8 Cargolux 5,225

9 Qatar Airways 4,972

10 China Airlines 4,813

*FTK = Freight ton-kilometers

IATA WATS 58th Edition Ranking

Total (International + Domestic)3

Principles of logistics and commodity flows

Logistic modeling (1PL, 2PL, 3PL & 4PL)

The term 1PL (First-Party Logistics) relates to beneficial cargo owners, which can be a shipper or a retailer who receives cargo from a supplier. The term 2PL refers to carriers that are providing a transport service over a spe-cific segment of the transport chain, such as a rail operator, maritime shipping company or trucking company hired to haul cargo from a distribution center to a destination.

The term ”3PL“ was first used in the early 1970s to identify intermodal marketing com-panies in transportation contracts. Up to that point, contracts for transportation had featured only two parties – shippers and carriers. The intermodal marketing companies appeared and began to accept shipments from shippers and tendered them to rail carriers, thus, as a third party to the contract, they were dubbed ”3PLs.”

The Council of Supply Chain Management Professionals defines a 3PL as a company that offers logistics services for hire that include transportation, warehousing, inventory man-agement, cross-docking, packaging and freight forwarding. Typically these services are inte-grated or bundled. In 2008 legislation passed declaring that the legal definition of a 3PL is, ”A person who solely receives, holds, or oth-erwise transports a consumer product in the ordinary course of business but who does not take title to the product.”

A 4PL differs from a 3PL in that the 4PL organization is often a separate entity estab-lished as a joint venture or long-term contract between a primary client and one or more partners. 4PL organizations act as a single interface between the client and multiple logistics service providers. All aspects of the client’s supply chain are managed by the 4PL organization. It is also possible for a major 3PL to form a 4PL organization within its existing structure.4

Definition Air Cargo Model – Integrator (CEP)

Logistic integrators have a unique advantage in form of strategic alliances with its global partners. Together with a matrix of business flow in all directions it provides a unique synergy to its association, thereby bringing measurable advantages to its foray. Logistic Integrators believes in picking up the best deals existing at the time of your shipment which not only gives a cost advantage but also economise the route length.

To simplify, logistic integrators with its world-wide associates offers following solutions in air freight logistics.

1 http://searchmanufacturingerp.techtarget.com/definition/logistics-management2 http://www.gacag.org/gacag/Role.asp3 https://www.iata.org/publications/Pages/wats-freight-km.aspx4 http://www.transportationinsight.com/blog/2014/09/1234-5pl-difference/

Time critical shipments

These are the shipment which needs to fly on Search or Souls (SOS) basis cutting across all limitations and boundaries. Defined in more appropriate way are the AOG (aircraft on ground), perishable, medicine, biological samples, temperature controlled shipments, critical machine parts, or any shipment where time is the essence. Logistic integrators have the access and options of various carriers to organize priority for these shipments and cut deadlines. Be into inbound or outbound the network is geared to take up these challenge and our success is the testimony of the same.

Cost critical shipments

If time is the parameter of performance, we also witness cost as the parameters of bench-mark. In this trying terms where the corporate balances the speed with cost, pushing both parameters in opposite direction, Logistic Integrators provide a solution in form of ”air consolidation” services. In simple terms it allows us and partners to consolidate multiple

shipment and do bulk buying from the carriers thereby bringing a cost economising solutions. While keeping an eye on cost we do not lose focus on time parameters.

The above services are blend with multiple options based on the client needs and con-venience. It is always the effort to provide a single window operation thereby retaining the control and visibility of freight movement but Logistic integrators also provides flexibility in accepting part services.5

The various combinations for the above services can be in form of:

• Door-to-door services• Door-to-port services• Port-to-door services• Multi-shipments consolidation from same shipper• Multi shipper consolidation involving milk run solution

5 http://www.logisticintegrators.com/air_freight.htm6 http://courses.aiu.edu/Certificate/Human%20Resources %20and%20MKT/Total%20Quality/Leccion%209/Total %20Quality%20Sesion9.pd

Evaluate the implementation

to confirm its real world success

The ABLE example

When the solution to a problem is not readily apparent, QDM provides a powerful technique: the ABLE Problem-solving Model. ABLE is a flexible, intuitive method that can be used to solve challenges large and small, whether working in teams or as individuals.

By using ABLE, you empower your team to meet key business goals:

• Reducing cost and improving efficiency • Improving service level• Improving customer experience

Through its four initials, ABLE makes it easy to remember the process’s four steps: Assess, Build, Launch, and Evaluate.

A graphic of the ABLE process guides you through each of the process’s four phases. Notice that the graphic is circular – to empha-size that quality relies on a commitment to ongoing, continuous improvement.

The Six Sigma example

Six Sigma is a set of techniques and tools for process improvement. It was developed by Motorola in 1986. Jack Welch made it central to his business strategy at General Electric in 1995. Today, it is used in many industrial sectors.

Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business pro-cesses. It uses a set of quality management methods, mainly empirical, statistical meth-ods, and creates a special infrastructure of people within the organization (”Champions”, ”Black Belts”, ”Green Belts”, ”Yellow Belts”, etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits.6

Quality Management

Evaluate the implementation

to confirm its real world success

Launch the solution successfully

through careful planning and control

Assess opportunities to improve the customer experience

or business performance – and focus on one

Build understanding of the improvement

opportunity and build the solution

Network

This module has the purpose to show the student an in-depth view of the FedEx HUB operation and will help to become more familiar with the processes and procedures. At the end of this module the student should have a basic understanding of the internal daily operation at a FedEx HUB facility and be able to describe the value-added-chain at Cologne HUB.

Value-added-chain

A value chain is the whole series of activities that create and build value at every step. The total value delivered by the company is the sum total of the value built up all throughout the company. Michael Porter developed this concept in his 1980 book ‘Competitive Advantage’.

The significance of the value chain: The value chain concept separates useful activities (which allow the company as a whole to gain competitive advantage) from the wasteful activities (which hinder the company from getting a lead in the market). Focusing on the value-creating acti-vities could give the company many advantages. For example, the ability to charge higher prices; lower cost of manufacture; better brand image, faster response to threats or opportunities.

You will be asked to analize FedEx’s value chain for the CGN HUB.

Module 1 HUB sort operation

Module 2 Ramp operation

Module 3GTS operation

This module has the purpose to show the student an in-depth view of the FedEx ramp operation and will help to become more familiar with the processes and procedures. At the end of this module the student should have a basic understanding of the internal daily operation at a FedEx ramp facility and be able to describe the processes at the CGN Ramp.

The student will run through various depart-ments of the ramp section to get an overview about all involved processes. For approximately 2 weeks, the student has the opportunity to stay in departments like the flight ops, ramp handling, dangerous goods and ramp man-agement to familiarize himself with the duties of the CGN Ramp operations. Processes like loading/unloading the aircraft combined with safety and security regulations, weight&bal-ance procedures as well as dangerous goods handling will be issued during this module.

Detailed description of the module will be provided upon starting your study cooperation with FedEx.

Global Trade Services

FedEx as integrator underlies customs regula-tions and duties. Additionally FedEx takes over customs clearance for costumers and ensures a tight cooperation with authorities to speed up customs procedures. Global Trade Services (GTS) is the inferface between FedEx and cus-toms but aswell the contact department for costumer questions regarding the clearance of packages.

The student will stay about 2 weeks in this department to be able to combine the GTS duties with the rest of the operation at FedEx CGN. Stations of his stay will be export clear-ance, import clearance as well as transit clearance and designated areas like In-house Customs (IHC) and Cage.

Detailed description of the module will be provided upon starting your study cooperation with FedEx.

Create Competitive Advantage

The planning and engineering department in CGN is responsible for tasks like capacity calculation. Capacity calculation means the forecasted volume to be handled in CGN in the following month. Factors like staffing models and manning figures rely on such capacity calcuations, this reflects the importance of such forecastings.

Another task is the network planning for in-coming and outgoing modes of transport from CGN. Finally investment management is another task of the Planning and Engineering (P&E) department which includes the financial planning for a period to keep the operation efficient. The student will stay about 2 weeks in this department to gain an overview of the P&E department. The above mentioned tasks are showing the field of processes the student will be moving through.

Detailed description of the module will be provided upon starting your study cooperation with FedEx.

Module 4 Planning & Engineering

You can’t manage what you can’t measure. W. Edwards Deming

Module 5Project

Project AssignmentThe student can choose between different departments, hub, ramp, GTS or P&E. Once chosen a department, he checks for availability of projects or brings in his own ideas.

Project Justification /cost-benefit-analysisDuring his studies the student achieved the knowledge to perform a cost-benefit-analysis and will reflect this in the assessment of the project.

Presentation/Alignment with ManagerTo ensure a certain effectiveness of his project, the student prepares a presentation where he states what his goals of the project are and how he is planning to achieve those goals. The corresponding manager will align the ideas and the structure with the student to develop an optimal outcome.

Project ManagementAfter aligning with his mentor, the student presents a proper project plan including time-lines and milestones.

Please inform yourself about:• Product planning systems• Gantt charts

Implementing ProjectImplementing and monitoring the project is crucial for project management. The student keeps track of his results and prepares a pro-ject activity plan to be able to provide a step-by-step analysis of his taken actions.

Project ConclusionThe student will gather all results and pre pare a conclusion report to his mentor.

Final Presentation & ResultsThe conclusion is followed by the final pre-sentation (power point) and the results. The audience will be reflective and gives feedback to the student for improvement or suggestions how to engage certain factors differently.

After completing the Modules 1– 4 at FedEx the student should have obtained an insight view of the operational procedures and is now able to pursue its own project. If the student can`t find a suitable project during the modules, the sponsoring department manager will assign a project.

You can’t manage what you can’t measure.

Getting startedat FedEx

BachelorThesis

If the student is willing to write his Bachelor Thesis at FedEx he might choose a project /topic and align with a manager who will be-come the mentor for the period.

• Topic suggestion might be done by the student in cooperation with a department manager of his choice• The respective Professor might assign a project

Note: Bachelor Thesis are in general to be considered confidential and require a special approval for puplic publishement.

fedex.com/de

The FedEx Cologne Hub is looking forward to encourage new talents and promote the marriage of theoretical knowledge and practical industry insights.

The goal is to accommodate students in our facility to generate more value for our company and benefits for students.

According to our People Service Profit (PSP) philosophy, the employee is the most import-ant asset at FedEx. FedEx is happy to wel-come young talents that bring individualism and innovative characteristics.

Are you interested and looking for more information? Then please do not hesitate to contact:

University of Applied Science WormsJan-Christoph Jeske

Mail: jeske@hs-worms.dePhone: 06241 509 109Fax: 06241 509 220Mo – Fr: 14:00 – 16:00

Or visit: www.hs-worms.de

FedEx ExpressStephan Zinndorf

Mail: stephan.zinndorf@fedex.comPhone: 02203 905 1313Fax: 02203 905 1441

Or visit: fedex.com/de