FedEx

Industry

Competition: Focus on customer segmentation, pricing, and quality

10-30% of sales: Physical distribution costs Ways to improve customer service: Well-managed logistics operations (flow of resources from the point of origin to consumption) to reduce order cycle

Globalization

Market Demand for value added services

Technology Process efficiencies

New Rules: Global network of distribution centres and their ability to deliver their customers conducted business Having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer Speed: important to both transportation companies and customers Power of Information: sharing of information-enhanced visibility

rd 3

Party Logistics
Refined Logistics IT Logistics Management Services Material Management + Physical Distribution

Physical Delivery

Management and Utilization of the flow of information

FedEx

2010: 210 countries, 34,000 drop-off locations, 10m sq. ft. of warehouse, 648 aircraft, 60,000 vehicles, 200,000 staff, 30% market share Pioneer of express transportation and logistics industry Next day delivery service revolutionized the industry Wherever business was conducted, there was going to be movement of physical goods 100,000 pcs, hand-held scanners 1st transportation company to launch website for tracking and tracing 1998 : $10 b with $1b on IT

Own transportation fleet

Inventor of customer logistics management: multi client warehousing