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FedEX company - Essay Example

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FEDEX faces competition from electronic transmission of mail and the emergence of companies such as UPS, DHL and other couriers in the package transportation business. Electronic transmission of mail is becoming increasingly popular and FEDEX is being faced with the need to…
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Download file to see previous pages The Company also aims to achieve a 10% increase in its operating margin. In order to attain to this long term objective, the Company has set out certain business goals, as laid out below (www.fedex.com):
Additionally, the Company also plans to improve its reputation as an environmentally friendly organization, by reducing carbon dioxide emissions by 20 percent by the year 2020. (www.thaipr.net). The central focus of the Company’s plans and goals revolves around its people, i.e., “people are the wind beneath our wings.”(Frock, 2006:201).
In the achievement of its goals, FEDEX has capitalized the vision of its founder, Smith who believed the success of the Company lay in IT(Lappin, 1996) and has implemented IT systems that are geared towards strengthening its e-commerce operations. The realization that information systems could play a vital role in ensuring the success of business has enabled the Company to survive and gain a head start in package delivery (www.garyclarke.com). The Company has made large investments in technology, using tracking software in order to ensure that the current delivery status of a package is always available, through the use of its proprietary network called Cosmos. The Company also sets up computer terminals at its customers’ offices and allows them access to the tracking software as well, so that they are able to generate their own pick-ups and deliveries (www.brainmass.com).
Customer tracking of packages is facilitated through the use of the Powership software and terminals (www.informationweek.com). The Company has been using wireless applications for a long time, but the efficiency of its current operations has been achieved by integrating SAP into its tracking system in managing its supply chain. The significant aspect of its technology development is the use of SAP R/3 systems to integrate its tracking systems with its supply chain logistics. ...Download file to see next pagesRead More
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