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FEDEX CASE ANALYSIS

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Trends in the U.S. including rising fuel prices and slow U.S. market growth have negatively impacted net income for FedEx. In January, 2000, the company announced a reorganization of its five subsidiary companies via three strategic initiatives:

Major internal reorganization aimed at creating one point access to sales, customer service, billing, and automation systems.

Introduction of a new low-cost residential delivery service.

The founder of FedEx, Fred Smith, noted during the reorganization that ôOur biggest challenge is to correctly manage everything thatÆs on our plateö (Ng 2000, C446). However, in its attempt to reorganize to leverage opportunities, take advantage of economies of scale, gain competitive advantage, and increase profitability, FedEx has not fully given attention to all of the various facets involved in supply chain management in order to achieve these goals.

Evolving business models of supply chain management begin at home. Before companies are able to take advantage of leveraging supply chain management externally, they must integrate internally. Four developments that have evolved as companies change reorganize their business models to incorporate integrated supply chain management in order to add value to produces and services are: E-marketplaces, collaborative supply chain management, integrated fulfillment, and design for supply chains by supply cha

. . .
h, whether incoming or outgoing. An E-Hub is a Web-enabled platform for multiple trading parties to find, exchange, and prioritize information related to buying, selling, and shipping. It also automates all the different transactions that must occur for customer fulfillment on both an inbound and outbound basis. This would be particularly useful for FedEx, because quite often several different parties are involved in a collaboration to deliver product or services to customers. A good example of this is the collaboration between Amazon.com and UPS. The use of an E-Hub allows for such collaboration between vendors and suppliers while enabling customers to still use both services from one site. Such abilities in supply chain management enable the companies to take advantage of economies of scale as well as leveraging supply chain management to add value to products and services in ways that equate to increased customer satisfaction. FedEx has long been an innovator and may now need to investigate competitors, now that technology is being widely embraced by most companies. As Ng (2000) maintains, ôAll major transportation and delivery companies [have] bet big on technology. Although FedEx pioneered the Web-based package-track
. . .

Some common words found in the essay are:
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Approximate Word count = 2310
Approximate Pages = 9 (250 words per page)

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