PowerPoint Presentation

Group 5Arun Maithani (11A)Navneet Sharma (26A)Nitesh Singh (29A)Sahil Taneja (39A)Shobit Mahajan (48A)Course: Supply Chain ManagementSupply Chain Management at FedEx

Started in 1971, to facilitate overnight delivery of document through airfreight system directly to the customers at affordable costsFedEx over a period of years differentiated itself by having state of the art infrastructures with technologically advanced automationOffers variety of services including warehouse management, inventory management, transportation and logistics managements to name a fewServes more than 220 countriesDelivers ~3.6m shipments each day

FedEx PortfolioThe journeyHeadquarter: Memphis, TennesseeFedEx Services integrates the technology and services customers need. It includes solutions for global supply chains, e-commerce, or any of todays business challengesFedEx 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 worldwideFedEx Ground gives customers dependable business-to-business delivery or convenient residential service. Also includes FedEx Smart PostWith extensive coverage in U.S., Canada, Mexico, and Puerto Rico FedEx Freight provides LTL choices based on customers shipping needsBackground: About FedEx

FedEx ModelCustomers 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

Key Question: 1Emergence of Fedex as the leading global provider of supply chain management services to corporate customers is attributed largely to the state of the art infrastructure facilities and its vast network spread across the world. Explain how FedEx's infrastructure facilities and network facilitated better management of the customers supply chain

FedEX: Key ingredients of successRobust Network + Strong Infrastructure + Technology Support = Win

FedEx: Robust Network

Hong Kong, China, Toronto, Ontario, Brussels, Belgium, Dubai, United Arab Emirates and Miami (Florida)750 Worldwide delivery centres1775 Office Drop-off Locations6300 Authorized Shipping Centres38,500 Drop Box Locations10 Express Air HubsOperations at more than 375 AirportsOperations at more than 1,240647 Aircraft in use47,500 Motorized vehicles

HUBCity - 1Pickup - 1Pickup - 2

Delivery - 1

City - 2

Delivery - 2

City - 3City - 4Pickup - 3

Delivery - 3

In addition to the superhub hub in Memphis, there are nine otherair hubsserving for particular zones of the world with similar infrastructure to the SuperhubInternational Guangzhou International Airport in China operates for Asia PacificToronto I. A. for CanadaParis Charles de Gaulle Airport and Cologne Bonn Airport for Europe, Middle East and AfricaMiami I.A. for Latin America-Caribbean areaTed Stevens Anchorage in Alaska for a part of Asia PacificDomesticOakland International Airport (CA)Newark Liberty International Airport (NJ)Fort Worth Alliance Airport (TX) Indianapolis Airport (IN)FedEx: Hub and Spoke Model

Fedex implemented hub and spoke model for dispatch and delivery system. Each city had customer service agents, cargo handlers and couriers who collect the packages or deliver to the customers. These, network were connected to the regional hub to co-ordinate the dispatch and delivery.

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Infrastructure facilities to help handle customer processes:Fedex infrastructure consists of operations hub at Memphis, a 647 fleet of aircrafts and 48000 vehicles for land transportThe operations at Memphis hub is streamlined with fixed time for unloading the aircraft, sorting and then reloading to the destination aircraftEvery night the process will start by 10:30 pm with 150-160 aircrafts landing in the Memphis airport and within 3 hours all the processes are completed the aircrafts took off to the destination. If there are any delays the operations teams were to explain the reasons and proper measures to be takenAfter unloading, the packages go through series of steps through which they sorted, and dispatched to respective destinations. These sorting is automated on conveyor belts equipped with infrared scanningThe scanning information is integrated directly with Fedex website so that customers can track the location of their shipmentsBy implementing and executing consistent processes, Fedex was able to deliver the packages rightly with less delivery time and costsMemphis Super hub: Infrastructure and operations

Technology supporting to stream line processFedex 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 executionTo ensure safety of the packages and timely delivery for the customers, Global Operation Control Centre (GOCC) was used to trace trucks and aircraft movementsGOCC also provided weather information to trucks and aircrafts so that accidents are avoided and reliable services are providedDigitally 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 destinationFedEx uses a variety of technology tools to streamline operations and complement infrastructureThese IT initiatives coupled with state of the art infrastructure facilities helped FedEx innovatively design and deliver supply chain services to their customers.

Key Question: 2FedEx solved the SCM related problems of its customers by offering an innovative customized SCM offering.Discuss in detail the manner in which Fedex help Fujitsu and Cisco in solving their SCM problems

Fedex SCM Services to FUJITSU PCFUJITSU had a subsidiary office in California with head office in Japan. The delivery time for notebook computers to its customers in US took more than 10 days though inventory was available, whereas other vendors offer much lesser time The company used two shippers, Nippon Express from Japan to US and Circle Air Freight within US and poor co-ordination between these shippers delayed the material arrival and some time even missing components. Further, the Portland facility was not strategically located to serve US increasing transportation time and costs.Business ChallengeFedEx relocated the assembly and distribution functions to its Memphis hubFedEx stored the components received from the Asian vendors in their warehouse in MemphisFedEx started providing their infrastructure to be used as warehouse and assembly for FPCThe order schedules were managed by FPC and given to FedExFedEx based on the schedules requested materials and provided to the FPCs assembly team or their subcontractorsLoading and Testing were also done at FedEx facility by FPC team The assembled notebooks were shipped different destinations by FedEx FedEx provided Warehouse management, shipping and transportation, Infrastructure to manage the assembly operations to FPC.FUJITSU through engagement with FedEx was able to reduce the delivery time to 3 daysFedEx strict adherence to inventory accuracy, return and fill rates ensured less finished goods inventory for FPCFPC had flexibility to maintain right inventory hence faster inventory turns and shorter shelf time helping them to protect from price changes and market changesSolution ProposedKey Benefits

Fedex SCM Services to CISCOCISCO for their routers sourced components from suppliers stored them in regional warehouses and then shipped them to assembly warehousesThe finished goods were stored in CISCO warehouse and shipped to the end customers based on the ordersCISCO had to manage large no. of warehouses, inventory of components, finished goods, longer delivery time and increased logistics costsBusiness ChallengeFedex provided Merge-In-Transit, a unique service to CISCO by utilizing their facilities and distribution network Through this service, CISCO identified the assembly warehouse of Fedex closest to the customer based on the orderThen, the suppliers nearby to these warehouses were asked to supply these components to assembly warehouseThe router got assembled at Fedex warehouse and shipped directly to the customer through the distribution networkFedex later expanded their service portfolio to complete order fulfillment through E-MergeCISCO was able to reduce the costs of inventory and transportation through this service. Merge-in-transit helped CISCO to respond quickly to the customer s orders without having to have huge inventory. Total operating costs reduced for Cisco through these servicesSolution ProposedKey Benefits

Key Question: 3FedEx offered different value added SCM services to its corporate customers. Describe each service in detail and their benefits to the end customers. According to you, what other SCM Services can Fedex offer its corporate customers?

FedEX: Transportation management servicesFedEx Transportation Management is an outsourced solution that offers end-to-end transportation management: optimized, multi-modal, and door-to-doorA single point of contact for all transportation needsIt leverages the FedEx family of companies (along with a select group of core carriers) to help customers improve operational efficiencies and customer serviceTransportation Management works with the customer to determine optimal shipping modes, minimize recovery needs, facilitate claims management, and provide consolidated reporting and invoicingFedex also provided additional related services like custom clearance, insurance, trade consulting through their subsidiary companiesSuitable for large, complex transportation projects that require orchestrated worldwide deliveries.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.BenefitsEnhance customer service - shipments managed to meet individual distribution requirementsOptimize transportation costs - choose optimal overall transportation solution from FedEx companies and core carrier networksto reduce costsReallocate resources - refocus yourtime and money on core competenciesImprove inventory management and production planning

FedEX: Integrated order fulfillment servicesInbound and outbound order fulfillment services including, picking, packing, shipping and delivering the goodsFulfilment 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 salesInventory Forward Stocking Location replenishmentOrder picking by serial number, lot number and expiration dateOrder consolidationCustoms clearanceCross-docking and kittingPreparation of international paperworkSpecialized packaging and labellingCustomized Web solutions for end customer order entry and VisibilityBenefits to the CustomerHelps cut overhead costs by outsourcing warehouse and software needs and providing a variable fee structureLimits investment and risk if you're entering new market segments

FedEX: Returns Management

Fedex offered returns management of picking from the dispatcher to delivering to the manufacturer, an online portal to access information of pickup on delivery details, technology APIs so that the customer can publish the returns information on to their own website using Fedex informationConsolidated return service to handle large volume returns for online retailersMultiple transportation legs supported, for the collection of a broken unit and return after repairAutomatic selection of optimal shipping mode based on the requested delivery time and or SLA with end customersEnd-to-end management of returns providing greater controlEnd of life solutions recycling and disposalTry and buy/Consolidated returnsA single point of contact for all return service needs

Key Aspects

Orchestrated Delivery Management: Through orchestrated delivery management Fedex consolidated bulk shipments, multiple consignees thereby the custom clearances were got in single lot. After this the consignment is shipped to respective customers

RecommendationsFedex has established itself has leader in shipping, logistics, warehousing and inventory management related servicesThrough their experience they can move up the supply chain and manage the collaborative demand management services thereby to receive, plan and execute a customer demand from a specific and optimal location and then finally ship it to the respective customerFedex over a period of many years established strong and consistent SCM processes, excellent infrastructure facilities and huge IT investments, helped itself position as strong tactical logistics providers in the SCM services industryThus, It can move up to add strategy part of the SCM services and provide 4PL (4th party logistics) provider and become true partner for their customers4PL normally doesnt own assets and do more consulting and coordinating work and engage many 3rd Party logistics providers; AS 4 PL, Fedex not just have to look for its own assets but also use the best of breed logistics provider based on customer situation

Courier Service

Customized Services

Complete 4PL Services

THANK YOU!