Global Logistics and Supply Chain Strategies of FedEx

Global Logistics and Supply Chain Strategies of FedEx
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Background
FedEx facilitates transportation management, fleet services and fulfillment to meet the customer needs. FedEx also offers international trade services including ocean, freight services, and customs coverage as well as delivery service. To facilitate this, the company manages customs-clearance while orchestrating deliver and return of packages. FedEx operates domestically and internationally with the fulfillment services are the reverse logistics, inbound and outbound logics. Additionally through operating fleet services the company is well placed to manage carriage services (FedEx, 2016). As a third-party logistics firm, the company performance logistics functions as an external supplier including transportation, warehousing and distribution. Integrating the multiple activities provides solutions to address the logistics and supply chain problems.
Logistics management
Logistics management and supply chain functions at FedEx include inbound, transport, order fulfillment, warehousing as well as supply/ demand planning services. There is also a need to manage customer orders properly in logistical management given that the production, scheduling and procurement processes are connected to the efficiency of logistics management. Logistics are important at all levels of the organization, since integrating logistic activities improves efficiency and improves performance and an organization is better paced to compete with rivals. Now more than ever before the logistics management activities of an organization are integrated including various activities like sales, marketing, procurement, information technology and finance.
Supply chain
Proper supply chain management is important to meeting the customer needs and this builds loyalty and customer satisfaction the customers have rust in the company’s ability to deliver. FedEx integrates strategy, technology and supply chain management to build a reliable supply chain system. The technology team is tasked with designing tracking devices to improve, while the strategy of integrating different aspects of the supply chain to ensure proper functioning. As a supply chain service provider, the company gives the clients a strategic advantage through delivery on time by relying on a network of people while utilizing capital and information to coordinate activities.
Critical inventory logistics
Another strategy is to optimize logistics management and supply chain activities is through using the critical inventory logistics system. This platform has been identified as being crucial to meeting the customer needs, where FedEx leverages its expertise to customize solutions to the customers’ requirements while managing critical inventories (FedEx, 2016). There are centers in strategic locations where customers can pick critical replacements when need arises. This option also allows the customers to access supplies through a global network off the company’s solution providers. For instance in the U.S FedEx Kinko provides document solutions but can rely on FedEx Express for transportation solutions, and the critical inventory platform also making it easier to deliver packages that are urgent, with customers identifying the critical inventory that are of high value to ease movement and delivery (FedEx, 2016).
Integrated logistics
With growth and expansion of the company’s activities across the globe, integrated logistics increasingly play an important role in logistics management. FedEx relies on an integrated logistics and transportation system to ensure speedier delivery of packages. The logistics process from order management, fulfillment and returns management are important phases in logistics management. The integration of logistics has made it easier to improve the operating efficiencies without compromising on flexibility. This has been beneficial since there is increased inventory visibility and minimal delays. The operational efficiencies are associated with cost containment, especially with the adoption of e-logistics to monitor different phases of logistics management (FedEx, 2016). The e-Logistics platform allows the company to address the customer needs regardless of the location as configuration of the online platforms takes into account the marketplace dynamics to improve customer service.
E logistics/ enhancement online platform e-commerce
Another factor that has improved coordination of the global supply chain and logistics management is use of online platforms to improve the e-commerce operations. The company has sought to design the site with the e-commerce option to cater to the customer needs while optimizing their experience. The rationale for enhancing the e-commerce operation without requiring the services of third parties is that the company integrates customer relationship tools. Now more than ever before, companies in supply chain and logistics are looking into ways to improve customer interaction. The e clearance is a platform to manage the clearing and forwarding activities of FedEx while connecting the various networks in global operations (ICD Research, 2014). In the case that certain items are not available then the customers get the information quickly. This option means that the company relies on customer information and queries to identify items that are in demand and how the tastes and preferences of customers affect their propensity to use the company’s services.
Hub centers
One factors to the success of global operations is the efficiency of the Memphis Hub, where packages are scanned sorted and categorized before shipment. The hub is strategically located near an airport to ease transportation, and although there are day shift workers catering for every day shipments, there are other night shift workers who take the sorting process at night (Jennifer, 2001). The coordination if unloading, sorting and scanning the packages ensures there are few or no glitches while delivering overnight packages. As planes from across the globe descend on Memphis, the workers have to be more efficient to avoid delivery delays as they work around the clock to ensure everything runs smoothly.
After planes get clearances they are allowed to move towards the company’s gate, the role of unloading, and maintenance is the next step (Jennifer, 2001). The safety crew members among the maintenance teams identify the likely causes of delays or issues likely to reduce efficiency during unloading. The use of a computerized system including scanners captures the relevant information. in case there are delays to planes leaving the hub or unloading takes more time than expected then there are back-up plans to reroute the package and use commercial airlines where possible, where the packages would be handled by other hubs (Jennifer, 2001). At the heart of this system is the need to take into account contingencies and minimize risk of late delivery. At the global level, other hubs also handle packages with interconnection among them facilitating communication.
Infrastructure facilities
To manage the logistics and supply chain demands, the company has invested heavily to improve infrastructure facilities to handle more packages on the global scale. The technology includes billing, tracking and communication technology that facilitate coordination of activities. FedEx operates in more than 200 countries, with diverse workplace cultures where the service centers hold most of the packages before they are distributed to the right persons (ICD Research, 2016). To achieve success in customer service, the infrastructure facilitates are designed to handle both small and large packages. The biggest challenge is meeting the demand of customers in high-density areas where delivery is to be on time, the staff on the ground including couriers, agents and cargo handlers communicates with the main offices in their areas of operation to ensure there is no late delivery. As such, both the personnel and the technology capabilities are mercenary for a well functioning logistics and supply-chain system.
Customer service
Coordinating the supply chain management services combined with good customer service has allowed the company to remain competitive while creating value for customers. Customer service support is one of the major services at the company that has enhanced the company’s brand image and reputation (ICD Research, 2016). The customer service at the company ensures that there are no stock outs when contacted to deliver packages to the customers. The place of technology in the distribution is important to improve customer service since the scanning and tracking of packages allows the company to get an update on the movement of these packages. Additionally, orders may be replenished based on the information available before transportation to the distribution centers. This is necessary to ensure that the stock levels are neither excess or below expectations, while delivering the packages on time. As such, having good customer service and delivery packages on time lowers the costs while improving the package velocity to improve operational efficiency.
Coordinating the delivery
Even though, the company is tasked with timely delivery of the packages, the customers need to make arrangements prior to the delivery by providing all the details and making payments. The company’s vision to provide supply chain and logistics solution is achievable when there is time-definite delivery as the company utilizes technology to improve delivery capabilities (FedEx, 2016). There are call centers where activities are coordinated before the delivery, but the customers have to call within the stipulated time. A gap in the distribution and delivery system can occur when goods are lost, or when there is partial delivery or damage to the label. After the customers package the foods, this makes it easier to deliver with the labeling in place. Delivering packages at the global level is useful when there is no late del...