Case Study on FedEx Company

Attached 3 files:- 1- Guideline of the project. 2- The case Study. 3- My Solution of the project. I need to edit and add 1000 words for part 2 only. Please don't do any solution for Part 1 and Part 3. For any more details or information if it is not clear, please contact me.

Part 1
Executive Summary
FedEx is one of the leading delivery companies across the world. Supply chain management
and customer management are the two main processes of the company. The company uses
transaction process system and information system, which are working effectively. However,
there are several information systems, which can be used by the company, such as ERP,
CRM, KMS. The overall activities of the company incline towards a unified objective, which
is to deliver packages to respective customers in the safest and efficient way most safely and
efficiently using an enterprise system. The company has a single Super Hub in Memphis for
coordinating the package delivery across the US. However, there are several benefits as well
as risks associated with a single hub. It is recommended that the company should work on
standardizing its products, promote its APP, and bring some creativity in designing of
containers.
Introduction
FedEx is one of the fastest overnight delivery companies (Ling et al., 2009). The company
was established in 1971. Today, the company is delivering more than 9 million packages
every day. The company is known for its speed, reliability, and efficiency. The company was
established by Frederick W. Smith to eliminate the inefficiency in the distribution of delivery
services. The information systems of the company contribute to its success. Different
business processes and information systems of the company have been discussed in this
study.
Problem Statement
Information systems are an integral part of FedEx, which needs improvement considering the
growing competition and complexities in the business environment. Thus, it is important to

analyze the current information systems of company to make recommendations for a smooth
and efficient flow of delivery process.
Part 2
Solutions for the problem in terms of business model and IT
Business model plays an important role in implementing a proper information strategy that
drives innovation in organization and also enhances business process as well (Wirtz et al.,
2016). In order to manage increased market position, FedEx needs to ensure that they are
serving their consumer well and for this, it is required to invest in advanced information
system like ERP, CRM and KMS. However, it is not only enough to invest in IT solution, but
it is also required to ensure that these IT solutions and strategies are in accordance with
business strategies of the organization as well.
Therefore, a proper business model is required in this context and for this business model that
is considered is value creation model.
It first identifies target customers for FedEx and once detailed information regarding target
consumer is obtained, it makes it easier to identify what type of data regarding consumers are
to be collected for analysis (Spieth & Schneider, 2016). Then it will look for how insight
obtained from this data might be applied for creating services that offers value to consumers
so that it is easier for them to differentiate this organization from its competitors. Then
business strategies will be designed according to this and proper value chain is created for
implementing these strategies as well.
Therefore, this model will help FedEx to ensure that they are information that are obtaining
and analyzing through IT systems like ERP, CRM and KMS are delivering values to
consumers and enhancing business process as well.
Business Processes of FedEx
The business of FedEx comprises of two main parts. These parts include customer
management and supply chain management, which has been explained as below:
 Customer Management

The delivery of packages is controlled by the control center, which ensures that the delivery
is on time. Moreover, the control center has the responsibility for flight status. FedEx
effectively does its customer management (Fryrear, 2017). Effective consumer management
is an important aspect for any type of business and in large companies, it plays an important
role in defining the reputation and success of the business as well. For a delivery company
satisfaction of the consumer is measured in terms of efficiency in delivering products on time
and for this proper control is required on packaging and delivery especially when it comes to
ensuring brand loyalty through consumer satisfaction as well. In order to ensure that Product
is delivered to the consumer. On-time tracking product right form when it is dispatched from
the seller and delivered to the consumers is an essential requirement. Therefore this control
centre implemented by the organisation for tracking and delivering products is an important
aspect of their successful consumer management as well.
 Supply Chain Management
The sSupply chain management involves sourcing, pickling of the packages, and scanning
them. These are given unique identifications identification numbers. After scanning and
giving identification numbers, the packages are transferred to a region, local, or sorting
location. The packages are trucked to the airport and transferred to Memphis Super Hub.
After this, the packages are placed to airfreight containers for shipment to local sorting
centres centers via regional airports. From sorting centres centers, the packages are delivered
to the respective customers. For a delivery company supply chain management is one of the
most important aspects of a successful business process. If supply chain management is not
proper then eat not only affects sourcing of product but also delays in delivery. FedEx is la
large delivery company and the source their items from different suppliers and deliver them
throughout the world. Therefore a successful supply chain management is of prime
importance to ensure that the business process is effective and efficient as well.
Each of the functions in supply chain is responsible for ensuring smooth implementation of
the business process and therefore it should be ensured that all of the functions in the supply
chain properly coordinated. It will allow and enhanced control on supply chain there for
contributing to the success If the organisation as well.
Types of Information Systems

There are two types of information systems used by FedEx, which include management
information and transaction process system. These systems have been explained below:
 Management Information System
This system keeps a check of the planes, trucks, and total packages, which are transported.
Therefore, the package and flight status is monitored continuously by this system. In this
digital era while companies are going for automation for enhancing productivity application
of technologies is of prime importance (Rekha & Jain, 2019). Organisations need to you have
proper access to business and consumer data so that decision regarding the business process
is effective and drive innovation in business and consumer management as well. Management
information system helps in automatic data collection and data management so that it is easier
to access and share data between various departments of the organisation to their process. For
implementing required business function according to the business requirements.
 Transaction Process System
This system sort packages and keeps a record with regard to destination. The width, length,
weight, and height is recorded by a dimensional scanner for the packages to estimate their
size and shipping cost. Prices are different with reference to the size of the packages. The
global operations are managed by the control center.
Recommended Information Systems
However, there are some other information systems, which have not been discussed in the
case but can be used by FedEx.
 Enterprise Resource Planning
Different business processes of FedEx can be integrated by an ER that saves cost and time.
The use of an ERP system will also help in the business expansion of FedEx. For
organizational planning coordination between different departments are required full stop in a
large organization like FedEx where various departments work together to execute different
business objectives coordination and collaboration between the departments are important
(Naser & Al Shobaki, 2016). In this context coordination and integration of required business

processes is of prime importance and for this and Enterprise system also known as enterprise
resource planning system is an excellent choice. It is a cross functional information system
which helps in ensuring that various departments in the organization has easy access to
required resources and collaboration and communication between these departments Are also
effective and efficient as well.
 Customer Relationship Management Systems
By using CRM systems, the company can manage customer complaints to improve service
quality and therefore satisfy customers. Consumer management is important for any type of
business and for effective consumer management strategy creating maintaining good relation
with consumers are required. In order to maintain a good relationship with consumers, it is
important to collect information regarding feedback and any issues they are facing in terms of
product and services and resolution of those queries is important. Consumer relationship
management software provides an integrated approach for interacting with the existing and
potential customers of the organisation (Safwan, Meredith & Burstein, 2016). It enhances
business relationship helps in process improvement and increase the profitability of the
organisation as well.
 Decision Support System
This system is supportive in of analyzing data and decision making the decision-making
process. In the modern business context, only access to data is not enough but it also requires
intelligent data processing and takes effective definition in accordance with insight obtained
from analyzing the data. The role of a decision support system is exactly that (Hamrouni,
Korichi & Bourouis, 2018). It helps in taking decision analyzing data provided to the system
as input. It enhances the accuracy and effectiveness of the decision-making process as a
decision is based on data provided to the system. However, the accuracy of data is something
that FedEx has to ensure otherwise it will affect the quality of the decision-making process.
 Executive Support System
Reports based on routine activities such as cost, billing, and scheduling can be generated
through this system. Executive of the organization doesn't have much time for analyzing raw

data and identify what the data is about. They prefer a summary of the data in such a form
that is easy to interpret and therefore help in making an effective decision in less time. And
executive support system software allows transforming enterprise-level data into executive-
level reports that are easy to access (Saade & Nijher, 2016). These reports are of significant
importance for billing accounting and stuffing departments for making business-related
decisions as well.
 Knowledge Management System
The performance can be improved by sharing service and delivery experience, which is
useful. Knowledge management system refers to tools and software that helps in organizing
and sharing knowledge and information of an organization. For example, Knowledge
management system collects feedback of consumer and also provides consumers with easy
access to frequent question answer guide for resolving consumer queries regarding products
and services easily. It helps in effective execution of the organization process and also
supports better consumer management as well.
Enterprise System
The system, which has been discussed in the case, is an enterprise system. The flow of
information, business processes, analysis of data, reporting, which. can be effectively
managed through this large-scale software package (Teradata, 2020). The overall activities of
the company incline towards a unified objective, which is to deliver packages to respective
customers in the safest and efficient way using an enterprise system.
The control center of FedEx operates global operations. Therefore, it has the responsibility
for monitoring the changes in flights and packages. A single maser system manages, delivers,
and processes information of the supply chain and transaction process.
Benefits and Risks of a single Super Hub in Memphis for coordinating the package
delivery across the US
It is understood that the largest sorting facility of the package is Memphis Super Hub. It deals
with 2.2 million packages per day. However, it is important to identify that managing such a
large number of shipments from a single hub is not always an effective choice. Although it
provides some benefits, it has some drawbacks as well. Almost 8000 people work in this hub.
However, it has some benefits as well as risk, which are discussed below:

 Benefits
1. The Single Super Hub is situated in the south of Memphis. The northeast of the
airport is just one mile away from the location. Therefore, it is easier to transport
packages to a nearby location with less a reduced amount of transportation costs. It
provides an additional control on shipment of packages. Although, cost is an
important aspect for analyzing benefits for managing shipment and packaging, but
another important thing that needs to be considered is wastages of products. When
packages are transported to destination which is far away from a place where
packaging is done, then there is increased chances of packaging being damaged in
transport. Therefore, managing packaging from a place which is close to airport
makes it easier to transport packages in minimum time and reducing chances of
packages being damaged in transit process as well.
2. It is a significant center for sorting, which commands as well as transfers packages.
The workload is somehow reduced.
3. Some cost advantages are obtained by FedEx because of a single Super Hub. The
fixed cost of output decreases with increasing scale.
 Risks
1. The local delivery of the package does not require transferring it to the primary hub.
This adds to human labour labor and wastage of time. Therefore, this is a drawback of
this approach. As packages are managed from a single hub, even if packages are
delivered locally, it needs to be transferred to the primary hub as already described.
Although single super hub provides cost advantage it also leads to additional costs for
local delivery as well.
2. Moreover, it is risky when the system fails because of unforeseen events or weather
conditions. The weather must be clear for the airfreight of packages.

Part 3
Recommendations for making the shipping process of FedEx Efficient
It is essential for FedEx to improve its working efficiency. The company is already working
efficiently in the market, but there is always some gap for improvement. There are different
methods, which can be used by the company to improve its efficiency, which has been
discussed as below:
 Product Standardization
The diverse markets could be unified by FedEx through the use of an integrated
tracking system on the computer. The products can be standardized. It will become
convenient for the company to take charge, along with time-saving (Ziobro, 2019).
 Automatic product transportation to the Pplane
A tunnel can be designed for the transportation of products directly to the plane by
container without the need of for the human workforce.
 Designing of Containers
The transfer of packages is done through containers. Different containers can be
designed by the company, as per the comparison and analysis of data.
 Pre-sort technology
By using pre-sort technology in the plane, both cost and time will be saved in the
local sorting center.
 Promote APP of FedEx
There is an official APP of FedEx. However, it has not been much successful among
people. There is a need to market it. This will support customers in checking updates
about delivery through the use of Gadgets and communicate with the staff anytime.

Alternatively, the newest require requirement and other information can be obtained
by the FedEx courier through the popularizing of this APP.

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