Analyzing FedEx's Business and Technological Innovations

FedEx has leveraged a range of technological innovations such as wireless solutions, Radio Frequency Identification (RFID), Velcro Wristband RFID systems, and big data analytics to enhance its logistical operations and maintain a competitive edge in the global market. These technologies have enabled FedEx to streamline package tracking, improve inventory management, and offer real-time insights into shipment conditions and locations. By embracing these technological advancements, FedEx has improved operational efficiency, enhanced customer service by providing accurate delivery updates, and optimized resource allocation. The integration of big data analytics further empowers FedEx to predict trends, understand customer preferences, and refine its business strategies. Overall, the adoption of cutting-edge technologies plays a crucial role in sustaining FedEx's reputation as a leader in the shipping industry and meeting evolving customer demands.

Running head: INFORMATION SYSTEM FOR MANAGERS: FEDEX CASE STUDY
Information System for Managers: FedEx Case Study
Name of Student:
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Author’s Note:

1INFORMATION SYSTEM FOR MANAGERS: FEDEX CASE STUDY
Executive Summary:
The aim of the report is to discuss about the Federal Express Company and the way in
which the company has invested in the information technologies. The innovation techniques of
the company have been discussed. The different methods which have been adopted by the
company to effectively offer service to the customers have also been discussed.

2INFORMATION SYSTEM FOR MANAGERS: FEDEX CASE STUDY
Table of Contents
Introduction:....................................................................................................................................3
Investment in information systems and information technologies:.................................................3
Innovation in the company:.............................................................................................................4
A systematic ongoing approach:..................................................................................................4
The never ending breakthrough process:.....................................................................................5
Prosperity of FedEx:........................................................................................................................5
Wireless solutions and technology:.................................................................................................6
Radio Frequency Identification (RFID):.........................................................................................6
Velcro Wristband RFID:..................................................................................................................6
Competitors of FedEx:.....................................................................................................................7
The contribution of Big Data for FedEx:.........................................................................................7
Conclusion:......................................................................................................................................7
References:......................................................................................................................................9

3INFORMATION SYSTEM FOR MANAGERS: FEDEX CASE STUDY
Introduction:
One of the first express transportation companies was Federal Express that realised the
advantages of technology. It began its operations in the year 1973. In the year 1978, around five
years after its operation, the company mastered the very first computerized centre for customer
service. In order to provide actual time tracking for every shipment, one of the largest computer
and telecommunication networks is utilized by FedEx. The company’s couriers operate Super
Tracker computers which are hand held for recording the shipments’ transit by the integrated
network of Federal Express.
The forty year old history of federal express is not just about their delivery services. It is
about far more than just the unimaginable and prompt overnight deliveries. Its case study is that
of creating a service then pushing their technology forward in order to make sure that the service
actually works on a larger scale. At a time when it has to be there overnight, there is the
requirement of powerful technology. The present stature of FedEx has proved ironically that the
manual state from which the company began ultimately led to such an immensely technological
and logistically major firm. The company is responsible for continually developing innovative
technologies in order to provide the time-definite service to the customers (Birla, 2012).
Investment in information systems and information technologies:
The “customer operations service master online arrangement” is a computerised package
tracking system that is responsible for monitoring every stage of the cycle of delivery at the
Federal Express. The representatives for customer service entering shipping information into the
COSMOS through the terminals of the computer alert the dispatcher nearest to the area of pick

4INFORMATION SYSTEM FOR MANAGERS: FEDEX CASE STUDY
up or delivery. In order to track the status of the delivery, super trackers which are actually hand
held computers scan the entire delivery process from start to finish at least five times in a day.
After the courier returns to the van the information which is downloaded from the Super Tracker
to the DADS, updates the package location into the COSMOS system. It is therefore possible for
the customer at any time to know clearly where his or her package is at a particular point in time.
FedEx is responsible for the payment of the transportation costs of the package (Lakew, 2014).
The operations at ground level based on the Memphis Super Hub enable FedEx to deliver
packages by the fastest surest and safest route. The system utilizes the satellite and computer
communications technology for monitoring of the routing and traffic information in the real time
in order to act as a management tool for weather. In certain cases where there is a sort of
disruption in the delivery due to the weather conditions the company uses the NASA data to plot
the alternative routes (Schwalbe, 2015).
Innovation in the company:
The company has always believed in innovation. The concept of innovation started when
the founders founded the idea of delivery of the time sensitive shipments. The idea was capable
enough and hence it established a completely new industry hub and express shipping. Since then,
the company has constantly pioneered new inventions with the view to meeting individuals and
possibilities giving enhanced solution to consumers. The innovations have taken several forms
which involve FedEx Power ship, FedEx Tracking, which helps the customers keep a tab on the
packages in transportation (Lakew, 2014).

5INFORMATION SYSTEM FOR MANAGERS: FEDEX CASE STUDY
A systematic ongoing approach:
The type of developments which emerge naturally over the focus and the need for
innovation are a systematic and ongoing approach. All the team members are entrusted with the
responsibility of looking for ways so that the operations are streamlined and improve the overall
customer experience. The most important aspect is that they also employ a proper and
methodical style for it. The FedEx Innovation is a cross disciplinary team with a particular
mission of developing ideas worth changing the game. The team makes it a point to
systematically research and identify emerging needs of the customers (Duke, Franz & Hsieh,
2012).
The never ending breakthrough process:
FedEx Innovation is responsible for engineers making remarkable advances. There is a
powerful multi-sensor device for the transmission and detection of real time shipment data on the
major variables which include location, shock, humidity and temperature. Innovation is
continuous. Therefore the company is still working for identification and investment in future
technologies that will provide much more clean and effective options with the engines that are
optimally sized for the power and the weight needed. These challenges assist in the development
of better solutions and build the connections which allow people and communities to flourish. It
is the responsibility of the company to ship more than 10 million packages all over the world.
Prosperity of FedEx:
The data centre of FedEx is responsible for processing greater than 20 million
information management system transactions on a regular basis which is greater than any other
US company. FedEx integrates the use of both new as well as old technology for performing and

6INFORMATION SYSTEM FOR MANAGERS: FEDEX CASE STUDY
providing services to its customers. The digital innovation of the company is due to the
expansion and addition of new facilities all over the world(Bowen, 2012). The organisation is
responsible for the integration of the wireless solutions, the Bluetooth systems and the dispatch,
loading and unloading of the packages.
The internet makes way for the business and the customers to have access to the
information about the procedure of shipment, locations as well as the tracking facilities in
addition to the expedited services. The main reason for the prosperity of FedEx is the internet.
Wireless solutions and technology:
The wireless technology has been implemented by FedEx which is responsible for the
proper tracking and scanning of the packages for customers as well as the business. Adoption of
such a technology allows the efficiency, productivity and amplified message between the
business and the customers concerned. The operation of the wireless technology has kept the
customers well-versed regarding the condition of the package which is known as package
tracking which makes use of Super Tracker technology. The process of scanning of the packages
from pickup to delivery at each stage of the shipment procedure is done by FedEx Express and
FedEx Ground.
Radio Frequency Identification (RFID):
The RFID technology has been used by the company since 1999. The FedEx ground uses
the wireless technology for asset tracking in a business to consumer environment. The RFID
helps to reduce inventory overload in the storage/inventory or delivery.

7INFORMATION SYSTEM FOR MANAGERS: FEDEX CASE STUDY
Velcro Wristband RFID:
The Velcro Wristband RFID transponders for the couriers to streamline the delivery of
FedEx delivery procedure have been adopted. The wristband is beneficial for a hands free
vehicle access in comparison to scanning for finding the keys for holding customer packages.
Therefore the RFID is an efficient tracking device for the FedEx in terms for inventory and also
for providing the customers with amount of speed and also the visibility (Schwalbe, 2015).
Competitors of FedEx:
FedEx is extremely famous in the market in which it operates. However the two biggest
competitors of FedEx comprise of the TNT Express and the UPS United Parcel Service. The
TNT express is an international courier delivery services company which at present is a
subsidiary of FedEx. The UPS United Parcel Service in American package delivery Company.
The contribution of Big Data for FedEx:
The success of the FedEx Company is related to making Big Data real. Opening up their
databases enables customers to track their individual packages in correct time and the packages
themselves relay information about their location and condition. Big data revolutionizes the
different aspects of our lives from the treatment of disease to the boosting of the industry. The
big data enables the person to get as well as record petabytes of data. This is possible from any
source. It can also collect data from news sources, social media as well as sensor data.
FedEx has also been using the approaches of the predictive analytics in the development
of models to help with predictions. These predictions are concerned with the response of the
customers to new services and price changes (Lakew, 2014).

8INFORMATION SYSTEM FOR MANAGERS: FEDEX CASE STUDY
Conclusion:
FedEx has been leading the way naturally and have invented the concept of time critical
delivery. The main reason for the continued prosperity of FedEx is the understanding of the
employees. The business models strategies and procedures need to be continuously evaluated
and enhanced to take advantage of the changes taking place in the environment of business. The
growth of the company has come from anticipating and meeting the changing customer needs in
a competitively differentiated method. The company provides more access and choice for
millions of people around the globe.

9INFORMATION SYSTEM FOR MANAGERS: FEDEX CASE STUDY
References:
Birla, M. (2012). FedEx Delivers: How the World's Leading Shipping Company Keeps
Innovating and Outperforming the Competition. John Wiley & Sons.
Bowen, J. T. (2012). A spatial analysis of FedEx and UPS: hubs, spokes, and network
structure. Journal of Transport Geography, 24, 419-431.
Duke, J. C., Franz, D., & Hsieh, S. J. (2012). Evaluating Constructive Lease Capitalization and
Off‐Balance‐Sheet Financing: An Instructional Case with FedEx and UPS. Accounting
Perspectives, 11(1), 57-69.
Lakew, P. A. (2014). Economies of traffic density and scale in the integrated air cargo industry:
The cost structures of FedEx Express and UPS Airlines. Journal of Air Transport
Management, 35, 29-38.
Schwalbe, K. (2015). Information technology project management. Cengage Learning.