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E-business and Value Chain - Essay Example

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Name: Title: Course: Tutor: Date: FedEx: E-Business and Value Chain Abstract FedEx, formerly Federal Express is a US based logistical services company employing about 100,000 employees globally. The company provides transportation, business and e-commerce services to organisations and individuals…
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E-business and Value Chain
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Download file to see previous pages This paper explains the firm’s e-business practices and the weaknesses in achieving full potential, giving recommendations on necessary improvements. Introduction Use of Radio Frequency Identification, RFID enabled FedEx transform the express delivery business and particularly its supply chain. Typically, a package would be picked by a FedEx agent and scanned then passed into the system bearing a unique identification number. This would then be taken to the sorting area or hub using a truck with other similar packages. The sorting centres would normally be over two football fields’ long with between 500 and 1,000 workers. Here, the packages would be sorted using conveyor belts system with a remote sensor. The multidimensional scanner would get the dimensions of the cargo including the length, height, width and also the weight of the packages for the determination of not only their sizes, but also the shipping cost. The scanner would read the barcodes on the package then paddles nudge the scanned package onto different belts based on their destination. Nonetheless, some packages could be sorted manually. Finally, the packages would be placed in boxes shaped in a way to ensure maximum efficiency in space utilisation in the plane. FedEx has a control centre that coordinates truck movements while still monitoring airplane and airport conditions. On reaching its destination, FedEx courier hand delivers the package, scanning it again so as to complete the transaction (FedEx 2012). RFID technology enhanced FedEx’s supply chain efficiencies. Q.1 The power of the Internet at FedEx FedEx was the first express delivery company to adopt e-business capabilities in its operations by availing package shipment information to its customers over the Internet (Hemmatfar, Salehi & Bayat 2010). The Internet defined the opportunity for attaining competitive advantage for those businesses that adopted the technology in their business operations. Smith, the founder and President of the company had foreseen the change in the way of conducting business and interaction of people through Internet business. As such, its customers do not have to physically drop their parcels to the nearest location. Instead, they would order for pick up online or by calling. E-supply chain ensured that these customers access shipment status information when need arises from their desktop terminals. FedEx established a dedicated website and gives each of its customers a unique bar code that would individualise each shipment hence the convenience in tracking one’s packages referred to as FedEx InternetShip. Other than accessing shipping information, customers and recipients would print shipping documentation from the website. According to Harris (2009), FedEx’s PowerShip programmes of 1980s provided high sense of autonomy among its customers, providing the capability of preparing shipments, printing of barcode labels, tracking of packages status and producing invoices, all without engaging any FedEx employee. With more advancement in technology, today, FedEx has adopted m-commerce strategies to provide its customers with wireless solution such as tracking package through the organisation’s home delivery and ground web enabled services. Through these personal data assistance, PDAs customers would virtually access tracking information from any location any time. FedEx entered into an agreement with w-Technologies Inc. that enabled the organisation make its website available on ...Download file to see next pages Read More
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