1. EXECUTIVE SUMMARY
4. BODY OF CONTENTS
4.1 How The Company Operates
4.2 Delivery Methods
4.3 Links of the Supply Chain
4.4 Globalization and FedEx
1. EXECUTIVE SUMMARY
FedEx is a multinational logistics services firm that features all aspects of logistics flow catered to consumers and businesses worldwide. The firm boasts a diverse mode of delivery methods to ensure that whichever used is time and cost effective. That leads to how FedEx has unearthed a few effective modes that determine on which route items are to be delivered. Their modes of cargo transport would include air, land and water. One system that has long-established to be cost effective for FedEx is via the nodes and links, whereby a node is a point of physical location such as a terminal or a hub where the containers are, while a link is the connection that connects the two nodes or hubs. Hubs are essential to logistics as they carry significant tasks so that parcel deliveries can flow smoothly. There are two main methods that FedEx credits to be most efficient for transporting packages; Zero Transhipment Case and Two Transhipment Case. So in general, the Zero Transhipment Case has an advantage in terms of being low cost whereas the Two Transhipment Case is useful in dealing with large volume parcels that would require covering long distance freight.
Nonetheless, FedEx services have not only applied to logistics, but also in the supply chain flow. According to an employee who works for a Melbourne based company, PBR Brakes, he had showed which area of supply chains that would require the services of a logistics company. For example, a production of one product that must go through the processes of supply chain in order to reach the end consumer would definitely need a service from a company such as FedEx, for more than once. Globalization has played an important role in requiring more services such as logistics companies due to the increasing demand of products and materials from overseas. Consequently, FedEx is clearly benefiting from this movement towards the new economy, being able to fully exploit the world’s emerging need for technology evolvement in supply chain and logistic services.
According to the APICS dictionary definition, logistics in general is part of, or involved in supply chain activities. Logistics is the movement of acquiring, producing and distributing physical materials and products at the right place, at the right time (APICS Search 2012). Supply chain on the other hand is “The global systems used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash" (CSCMP Supply Chain Management Definitions 2012). Logistics main functions are to provide solutions by planning and executing the right system which involves the management of warehousing, transportation, order fulfilment and inventory, just to name a few.
There are many big names in the logistics industry and FedEx being one of them will be the main discussion in this report. FedEx’s current main competitors would include UPS, DHL and TNT that are also the commonly used freight services worldwide. FedEx has a very broad portfolio and as a multinational firm, its business comprises of diverse segments that are segregated by four different regions; Asia Pacific, North America, Latin America and the combination of Europe, Middle East, Indian Subcontinent and Africa under one umbrella. However, this report will be emphasizing more on how FedEx’s general operations are executed in the USA.
3. HISTORY AND BACKGROUND (NORTH AMERICA)
According to FedEx’s main website, FedEx is currently managed by the FedEx corporation which controls the planning and records the financial reports for the operating companies that are