Transportation Service Companies - Essay Example

Introduction: In modern times different means of parcel and goods transportation have been introduced. What would take months and weeks to be dispatched get delivered in less than 24 hours now. This service is not just limited to a particular region, inside the town or country service, instead across the continent. Large numbers of standardized cargo service providers are available. Amongst them D.H.L, Fed Ex, T.N.T and U.P.S are few of them. For all these service providing networks, effective communication and effective supply chain mechanism needs to be in place. Supply chain delays can result in havoc. While services industry is directly associated with the customers satisfaction and response. For this purpose all measures must be taken in to account by the aforementioned servicing companies in order to ensure in time delivery. FedEx: FedEx short for Federal Express is an American based cargo service providing company. It is in place since the early 70s of the last decade. The entire concept was initiated by the owner Frederick W. Smith. The initial services were limited to small number of towns, and with limited resources. They were gradually expanded and with current standings, Fed Ex is present in nearly every country across the world. Its network can be stretched to Asia, Europe, Africa, Caribbean and other parts of the world. In short it is available in those parts of the world where there is proper infrastructure and existence of populace to some percentage. Fed Ex has large number of subsidiaries under its belt and they perform in different spheres fulfilling the requirements of various segments through variety of services. Brief History: It underwent the name change in the late 20th century and became Fed Ex after wards. Prior to that it was called FDX Corporation. In 1984 it started providing its services across the continent and started reaching to the continent Asia and Europe. It is termed to be the company that has brought about revolution and innovations in the manner in which the freight and cargo transfer were being carried out. By 1973 official cargo services started and local plans were being used for it. Supply chain strategy of Fed Ex: The supply chain of Fed Ex avails the features of technology, underlying the strategy and transport means. All these complement one another and are effectively useful in ensuring the service delivery. The supply chain is kept simple for purpose of customer satisfaction and maximum reach. The prime is to ensure fulfillment of all factors for effective supply chain communication. Essence of effective supply chain: Fed Ex has an effective supply chain mechanism in place. It enables reducing costs, overhead costs, time duration in delivery and various other factors that are vital for the success of an organization in general and Fed Ex in particular(Gardner, 2005). Strategies focus: The basic areas targeted by Fed Ex are in time delivery, reach to every nook and corner and reduced costs. With so many other competitors in the market, these are few of the factors that need to be taken into consideration in order to outsmart them and make a place with the customers. D.H.L: Deutsche Post D.H.L Like Fed Ex is another major player in the field of cargo and freight transmission. They specialize not only in cargo but heavy logistics as well. The scope of their work is quite broad and they even provide the supply chain setup to various companies. It has its wings spread across the world and nearly 4 million customers’ bench is being enjoyed by the incumbent company. Besides this it has over four thousand offices across the world. It serves on international level across the globe and has as many as 70 thousand (approximate) vehicles all over in its network. It has over half a million employees recruited all over the world in different chains working under the banner and striving for customer satisfaction and company success. To its achievement bag, it performs the services of cargo and goods transfer of as many as one billion customers every year. Tag line: Within time frame services delivery. Brief history: The early years of 21st century saw a total revamp and restructuring of D.H.L and an integrated approach was being adopted. The revamping process was conducted under the guidance of I.T experts who were dedicated for the purpose of establishing a total new infrastructure with head office in Prague. D.H.L makes use of effective communication network and setup. For this purpose it has acquired the state of the art technology in the network which ensures in time, reliable and speedy communication with the customers. Centralized focus: The working of the incumbent organization is focused on customer satisfaction, making the process of communication and delivery easy and achieving what others may not be able to do so. The working and goal rotates around the customers priorities. Customers come first in their working manifesto. Earning customers loyalty and making a bench of customers who come for services acquiring repeatedly is the core motive of the organization. Achieving that involves gaining the customers satisfaction since a customer’s voice and opinion can move the organization either way. If satisfied he can bring along more customers with him, if otherwise, he can take away three to five customers with him on average. Services delivery on large scale such as logistics, automation based equipment all come under the umbrella of D.H.L services. Their reach is spread out across five hundred airports all over the world. An astounding figure about its services and reach is the number of specially allocated planes for the purpose of cargo and freight transmission. The policies are defined in such a way that aim at making the company first choice of every customer and those who are its old customers should remain the clients for longer period due to the policies and packages provided. Other areas of focus: Go Green concept: All its practices are in line with the environmental considerations. It aims at making the world a better place to live. GO teach: An initiative that aims at raising the education level and awareness all over. This is of great importance and effectiveness in regions where the education rates are low and people do not have access to education freely. TNT Express: Brief History: Acronym for Thomas Nationwide Transport is an Australian based cargo service provider that was launched in the middle of 20th century (1946) by Ken Thomas. With time it has gained progress and has made it to the ranks of world renowned service providers that live up to the customers’ demands and satisfaction every time being tried and tested. Official re branding took place in the early years of the current century and slight modifications were being made in this regard to the name and purposes that are being fulfilled by the company. Outsourcing: It has outsourced part of its franchise for the purpose of ensuring good services abroad. European services are one of them and they have been outsourced to Fleet Logistics. The main idea behind this move was to reduce the costs that might be incurred otherwise. This move was based on the idea of ensuring core competence and letting the local machinery perform well in the local and most near resources. The entire process has been a success so far and the venture has helped the parent organization keep up with demands and obstacles of current day. T.N.T is a world leader in cargo and parcel delivery. On a rough scale it conducts almost one million transfers of goods and services across the globe every day. According to the annual report 2011 published recently, the company enjoys a staggeringly high percentage of delivery success (over 90 percent). This is one of the core reasons why the company enjoys a loyal bench of customers. The company has recently gained success through a different means and measure and that is through re defining the routes of supply and transport. This has resulted not only in the improved customers’ satisfaction due to in time delivery but also the amount of costs reduction in fulfilling the services demanded. Large percentages of the revenues come from the services and businesses in China and other parts of Asia. Core Competence: The core focus of company revolves around number of items, mainly the customer satisfaction as the priority; this is followed by the effective supply chain which can be earned through solid partnership and partners in the business. Finally on the side shores, it ensures eco friendly services since the earth is already being harmed by the automotive industry all over. It has large group of partnerships with in Europe. Annual report Findings: The annual report for the year 2011, has detailed about all the segments of the organization, its services, its performances, its relationship and its achievements within the continent and beyond. Despite the global recession and low trends, the company has achieved positive growth in the recent year. All indicators ranging from estimate consignments per day, the average amount of weights being transported every day, and other variables have increased showing a positive trend over all. As a result of increase in demand, the costs have increased as well but that is acceptable and understandable since more number of orders were being fulfilled and hence more number of resources and capital being used (TNT, 2011). Cost of material has increased due to the overall recession and financial crunch with increase in the crude oil prices per barrel. Future agenda: Having achieved the targets to a large proportion in 2011, the focus for the current year has been to consolidate on the success achieved. This would help in multiple ways. Firstly it would allow keeping up to the customers satisfaction, on other front it would enable highlighting the areas where the short comings might exist. Besides this the airways passage is under consideration for improvement and re design. Finding routes that are less distant would help reducing the time needed to reach the destination, as well as in time delivery plus less costs incurring. Other future goals include exploring the new regions. Regions that are not fully explored either by the company itself or by others as well. UPS: Tag line: Navigate International Shipping with Confidence Acronym for United Parcel Service is American service providing company that has its repute due to in time services and customer care. Besides being the cargo carriers themselves, they provide expertise in the field of logistics and massive transportation of various kinds. For this reason, it heavily makes use of the electronic means for the purpose of maintaining efficient communications and hence living up to the customers’ satisfaction and demand. One of the oldest in business, unlike H.D.L and TNT that were launched later in the 20th century, this company has been in place for more than a century now and is growing strong constantly. A multibillion dollar revenue bank annually It operates around the world. It has an extensive bench of vehicles scaling up to nearly a hundred thousand, followed by number of planes for cargo and logistic transportation. Large amount has been invested in the technological field for ensuring ever effective communications and staying in touch with the customers every minute (Vida, et al., 2003). U.P.S core competence is its effective network enabled in underneath by technological means for accomplishing the task. The company is still growing strong and aiming to explore areas where improvements can be made and further customer satisfaction might be achieved. The environment consideration is the prime agenda of the company and considering the damage that is being caused to the atmosphere, it has come up with electrically powered automobiles that are being used for transmission of goods and other material. This will help reducing the pollution that is otherwise being caused by the emission from vehicles of all kinds. Hence U.P.S along with its core focus on delivery services, it is equally careful about the environment and ensures its services are in line with the environmental factors (Dept., 2011). References: Dept., 2011. Project Overview: United Parcel Service’s Second-Generation , s.l.: U.S Dept of Energy. Gardner, S., 2005. FedEx Case Study, s.l.: FedEx. TNT, 2011. Building on Strengths Annual Report, s.l.: TNT Express. Vida, M., Miele, C. & Samà, S., 2003. United Parcel Service, s.l.: St. John’s University Undergraduate Student Managed Investment Fund. Read More