FedEx Competitive Advantage by using Information Technology
Studying the various IT primarily based initiatives put by FedEx to compete with the other companies in its market. and to answer the question of How FedEx gain competitive advantage through such initiatives.
IT primarily based initiatives created by FedEx in to order to compete with the many players in its market industry.
FedEx provides customers access to nearly time period info that has enabled new supply chain models and efficiencies. In 1978, Fred Smith was magnificently quoted as he said, “The info about the package is simply important as the package itself.”
This new access to info is connecting customers around the world to economic markets and communities.
FedEx truly provides 2 services to their customers: the physical transportation and distribution of packages, and therefore the info systems that determine the location of a package at any time.
As the leader within the specific transportation trade, FedEx was the leader to put in computers in its vans, give a sophisticated automation within the mailroom and develop control capabilities and software. FedEx operates one among the world’s largest client/server networks.
Today, FedEx personnel carry hand-held computers that operate in real time, operating with the company’s internet services for nearly instant package chase and delivery status.
FedEx has invest during a variety of IT based initiatives that may deduct the rigour of shipping and handling for several businesses for example shipping prices is downloaded directly into the current accounting software.
FedEx provides variety of IT solutions to its customers, including:
Businesses will integrate FedEx Shipping or following services into their on-line applications and/or supply chain systems. FedEx fast Ship permits customer to access shipping connected tools from inside Microsoft Outlook. once customers have FedEx QuickShip, they will be able to track the situation of U.S. shipments, get shipping rates, schedule pickups, and determine the closest staffed FedEx location—all while not going workplace Outlook.
In Sep 2005, FedEx launched a service that sends out an E-mail alert of a delivery delay, with a link to a secure internet site containing the details. Previously, customers had to check themselves where a shipment was in its delivery route. Freight Advance Notice lets business customers adapt their supply-chain processes to the expected delay and take steps to avoid associated prices. FedEx Freight Congress of Industrial Organizations David Zanca said: since we’re enabling customer to optimize the availability chain, it’s important to allow them to recognize when there is a problem. The client needs to know when a shipment’s planning to arrive. If it isn’t going to arrive on time, they particularly need to know in order that they will notify their manpower and their customers.
COSMOS (Customer Operations Service Master On-line System) tracking system monitors every level of the delivery process at FedEx based on constant info input inside the system by many ways. Information entered by customer service representatives mention the sender nearest pick-up or delivery place, who then relays the pick-up and delivery data to the courier via the DADS system fitted in courier vans. SuperTrackers (hand-held computers) are used to check the progress of the package. Once a courier returns to the van, the information is downloaded from the SuperTracker to DADS, which updates the package location in the COSMOS system.
Command and Control’ – the largest UNIX given in the commercial world – uses satellite and computer communications technology to control routing and traffic information in real time and acts as a weather management tool. This enables FedEx to deliver packages by the fastest, safest and surest route, in any weather condition.
Technology is the essential driver that has shot FedEx from a pickup-and- delivery startup organization to a worldwide delivery huge driving development around the world. FedEx’s unparalleled tracking systems empower clients around the globe to see everything about a package’s movement from the minute a label is set up until the point when the package is dropped off at its destination.
Technology is one of the essential parts that have empowered FedEx to develop and success out of the shadow of its biggest rival UPS. FedEx.com tracks in excess of 15 million one of kind guests for every month and handles more than 3.5 million package tracking requests daily. Ability to track each movement of a package in real-time is its greatest competitive advantage.