Case Study on FedEx Company

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