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September 1, 2012

Essay Paper on Fedex

11:49 AM

U. S. Company with global operations
FedEx really changed the landscape in the LTL freight business by delivering time-sensitive LTL shipments with the reliability that FedEx was known for. This acquisition gives us the opportunity to do more business with our current customers and also target new market segments with customers with this industry-leading service. FedEx freight and Watkins together will form the industry's most well rounded transportation solution, all under a single, very well-known brand. The companies are also a very strong cultural fit and that's a very key ingredient because, together, we will have the most empowered, trained flexible work force, which is an absolute imperative to drive the superior value proposition that we will go to market with. In addition to enhancing FedEx Freight service in the United States, this will give them their presence and footprint to operate with within Canada and also North and South (Bailey, 1983).

FedEx Activities outside US
FEDEX is one of the most successful companies in its domain and nature of business. FedEx has a strong network through which it retains its customers by delivering on time shipments and deliveries. FedEx is in logistics business in all around the world and it is focusing a lot on the customer enhancement by delivering best solutions inside and outside US.

Economic Concept: Competitive Advantage Through Effective Supply Chain management
FedEx defines supply chain organization as managing the commerce procedure from the early dealer to the final client focusing on speed and suppleness, resulting in the lowest total cost and highest customer satisfaction-from supplier's dealer to customer's customer-with supply choice based on total life cycle costs. FedEx recognizes five principal attributes of supply chain management:
  • Strategy - making an effectual supply chain management business and partisan fact-based strategies and plans.
  • Resources - just beginning and organizing human resources and information systems essential to make the most of performance. Nothing happens with any superior, highly-skilled professionals using effectual technical tools.
  • Processes - making planned strategy based upon total cost administration and in sourcing/outsourcing analysis and be relevant a methodical move towards to better use the supply base (Walters, & Bhuian 2004, P: 97–121).

  • Optimization - bring into line the provide base with our supply chain objective and repeatedly seeking to get better the supply chain methods and work of art.
  • Globalization - Viewing provide possibilities on a worldwide basis.
High standards for overhaul and excellence from FedEx suppliers will never be cooperation. We at FedEx appear for quality products and services transport on time and at spirited prices resulting in the lowest total cost of possession. FedEx selects its dealers based on their aptitude to get together our severe requirements and the ability to dish up as a supply chain development associate.

Use of Technology for Strategic Advantage
FedEx has made the most out of the technological advancement and it has also converted its business operations into online system just to become 24/7 organisation. The online system resulted in greater accuracy--approaching near 100 percent--as well as reduced costs. Rutherford, in fact, cited savings of $194,430 in administrative costs and $161,992 in salary costs for ground operations and customer service divisions. He noted that the cost-saving figures assumed that the new process saved 20 minutes of time for each employee to access a terminal, rather than taking the survey in groups during a 30-minute meeting.

It is now common practice to begin every discussion of globalization by observing that its meaning is contested. Having noted that the term is used in multiple, often contradictory ways. Not wanting to risk upsetting settled expectations, it is better to define “globalization” for present purposes as the processes of convergence in the economic, political, cultural and legal realms in countries around the world as evidenced in institutions, rules, norms and practices. Globalization is both a cause of convergence and a measure of the degree to which convergence has occurred.

Impact on FedEx
The globalization compelled the FedEx to make some strategic alliance with its business partners. The acquisition of Watkins is a smart, strategic investment that will drive profitable growth for FedEx Corporation. The acquisition generates numerous strategic benefits. It enables FedEx to enter a new segment of the LTL market. It meets our customers' desire for a complete FedEx branded suite of LTL solutions. It broadens the already extensive FedEx customer value proposition. It creates new growth opportunities with existing and potential customers, seeking a low-cost, long-haul solution. And most importantly, it drives shareholder value. With annual revenues of over $1 billion, Watkins is among the largest privately owned LTL carriers (Belew, 2000).


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