FedExStructural transformation through e-business

What is Logistics?

Major Players

Porter’s Five Force Analysis

Supplier Power

New Entrants

Substitutes

Buyer PowerCompetitive Rivalry

• Alternative for Fuel- rising

fuel prices are often passed

on.

• large pool of suppliers exists-

suppliers have little power

over the Industry

• Entry Barriers are low,

• Brand equity of Fedex poses

highest barrier to enter.

• Buyers have multiple options

, demand for high quality

and timely service but at low

costs.

• Buyer power is high

• Low threat- Info movement

instead of fright movement

has become possible due to

better available IT

• Contracts are short term,

unless integrated

• Fixed costs are high

• Constant need to reduce

order cycles

• Term paper to 45 Billion Dollar Creation

• 186 to 5,000,000

• Began operations in 1973

• Uses Super tracker Computers

• First to input COSMOS (Customer Operations Service Master On-line System) in their system

• Founder Fredrick W Smith

• Headquartered Memphis, Tennessee

About FedEX

Blue Ocean Strategy

• Quick to adopt new technologies in the logistics industry

• They were successful in interconnecting and then distributing the information.

• Businesses began to outsource supply chain management to FedEx and this led to partnerships.

• FedEx provided greater automation to its customers

Logistics of FedEx

IT in FedEx

• Widespread use of Internet threw

open significant opportunities

• Existing EDI based system and decided to use a

combination of Internet and the EDI.

• Used IT to improve upon its customer service

• Integrates both old and new technology

IT in FedEx contd…

• Integrates Wireless Solutions, Bluetooth, and

RFID

• Use of Package Scanning and Package Tracking

• Use of Microsoft Powerpad and Bluetooth

• Adoption of Velcro Wristband RFID

transponders

COSMOS of FedEx

Short Video

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