Industry Analysis of FedEx Corporation

In order to successfully meet their customers' requirements, each industry operates

differently. The basic aims of FedEx companies are similar to the one I said above, but we
will try to grasp their elements and to discuss what they are doing to increase or decrease
demand. In order to understand how they might be found in competitive markets, we also
examine the cost structure and profitability. We will examine some of the opportunities that
companies face and what some of the best practises may be done to achieve. Together we
look at the factors that play a part in increasing and reducing demand, the structure and
prospects for cost and profitability. In Pittsburgh, Panama, the FedEx supply chain has its
primary company. They are mostly headquartered in 3PL AT&T logistics in Fort Worth and
Coppell. The FedEx Supply Chain has the same umbrella pharmaceutical firms, which use
the same logic and processes to achieve their clients' objectives. Looking at this company's
sales, 2018 will generate 1.7 billion yearly sales (FedEx services, 2018).

Here in DFW, the supply chain mostly deals with AT&T products such as telephones, U
verse, digital life product, the business front, help AT&T to send the entire product to the
decided states and main shipping hub and the company's back side helps AT&T manage the
customer and store returns. The profit trend is improving with net income of $1.02 billion
reported in fiscal year 2017, which grew by $1.13 billion in 2018. (FedEx Corp. Reports
Fourth Quarter and Full-Year Earnings, 2018). As we have seen, however there are many
aspects which drives demand factors in the competitive market, FedEx's supply chain under
the company is doing very much financially Of course, the customer uses AT&T as their
supplier, making it easier for the supply chain FedEx to maintain its demand over time, but
marketing in pricing and on a contractual basis with AT&T plays a major role. FedEx offers
excellent customer service to meet and meet AT&T requirements.

FedEx supply chain has established several programmes to maintain an AT&T inventory at a
lower rate than other firms can supply, which makes AT&T stay with FedEx as their rates and
quality increase through the introduction of quality control management solutions, "Quality
Driven Management is a unique quality mindset and technique, designed by FedEx for
FedEx," states Frederick W Smith President and CEO of the FedEx Corporation. It is built on
the concept that customers define quality, which is strongly rooted in our culture." (Quality-
driven management), a terrific instrument for giving our customers a quality product that
helps demand to stay or to grow. In addition, FedEx supply chain 3PL technology is based in
Fort Worth, where clients can view and observe the quality and money that they have to
spend to obtain services, and FedEx tries to offer the finest services in minimal amount of
money. The demographic trend plays a major part in the demand element. Pricing can be an
enterprise competitive weapon. This price was utilised by the competitors as a weapon
whereby they could draw the consumer through contract negotiations in order to reach a
business where they could win. FedEx offers different services, such as inventory turns, that
can aid clients "The number of time inventory is usually computed every year and is sold or
used within a certain period. If a company has a proper demand planing procedure, stock
turnover takes place with quicker speed to prevent stock from sitting on stocks" (Measuring
e-commerce efficiency in 2017), the utilisation of storage space, the order fill rate, order
tracking and so on.

There are five phases of the product life cycle that play an important role in the company's
growth and it shows you the company's true indication at the moment. As FedEx took it over
from Genco, it was a small company, with much to do to improve the quality of work as well
as raise demand on the market, so the focus was on improving the company's spending and
profitability, because we saw that FedEx started to invent cash and make the company stand
on the market. It is the stage where the company is in a steady phase, staying strong in front
of competitors that FedEx has to go through and still is, because there are several competitors
out there, like UPS, XPO, logistics, etc., and they are doing the same type of business
(Warehouse Operation, 2017).

FedEx has highlighted some challenges at this stage that FedEx is trying to overcome, such as
expanding existing medical companies, and FedEx is expanding medical distribution centres
in Memphis (FedEx Supply Chain Ramps Up New Medical Distribution Warehouse, 2017) to
Maturity, a phase in which the market demand for the industry has grown saturated. For the
FedEx supply chain, costs shall be included in the contract when the agreement is written
down, thus costs are not an issue as they are constant across the organisation. There are many
special projects that can assist them develop this profitability account because of the strong
reputation of the company that knows that the customer will be fully qualified as soon as the
supply chain comes from FedEx. The Company charges the labour and the price of the
material for the provision of services as well as for the profit to pay for its costs. Material
cost, which is attackable and may saving much money on the corrugated cases and materials,
is the most costly aspect in the FedEx supply chain.

FedEx's market growth opportunities

Business expansion within companies. I think FedEx needs to look very aggressively at other
supply chain companies to stand firmly on this competitive market. In Memphis they started
medical work (FedEx Supply Chain Ramps up New Medical Distribution Warehouse, 2017)

Advanced Technology - A number of organisations use robotic technology which helps

increase profit margins in order to remain on the competitive market.

Additional Group service - We need more contracts to be concentrated and expand on the
market than we do. FedEx has an agreement for T-Mobile and AT&T that serves more groups
and helps them to increase their profits.

Improvement of networks and software - software needed to track day by day transactions
and to increase the efficiency of software. software. The improved software allows for faster
and quicker work that helps to entice other clients to join your organisation, which's why the
FedEx supply chain still uses upgraded WMS.

When we discussed some of the prospects for improving the FedEx supply chain, there are
also some threats in the industries as shown below.

Cheaper entry – Amazon is a major competitor of all 3PL companies, because all services are
offered at a very much lower price, as they rally large markets and they can meet customer
requirements at cheaper prices, but companies like FedEx cannot work like them because this
is only a small unit of enterprise, that is why it is a threat for the enterprise, where they are
not.

Slower market growth - FedEx must open other channels than technology because of its
limited sources in your organisation.
Strategies & Future Recommendation – "FedEx's market-based approach relies on a
combination of customer insight, operational excellence and product leadership. The
excellent operating system of FedEx enables it to deliver items or services faster, easier and
at lower prices than its competitors.