FEDEX Operations Management Strategy

Supply Chain it's a major issue for companies. Through years FEDEX has been considered as a specialist in Operations Management.As seen through the mind mad, FEDEX was able to apply different operation strategies to maintain a high end service. Their main and standardized operation form of overnight will be considered as one of their main drivers to solve it's issues.Other implementations like TQM or waste management also helped FEDEX to be considered one of the most trusted companies world wide. Even though FEDEX managed to maintain it's service constant, now they are facing big problems and as mentioned the main one will be: Amazon Air. FEDEX will need to focus on how they will solve this challenge to try to maintain revenue. This will be their main challenge and the high level executives will be having a lot of work to solve it.

As covered in session 8, companies face multiple problems related to waste management. As seen in the video FEDEX has problems with non utilized resources and / or unnecessary movements. These two types of waste are caused by the movement of empty planes.Also, FEDEX will be facing challenges in the future with the expansion of other companies, as for example: Amazon Air, they'll be facing a new competitor and also loosing a big client.

As covered during session 8, the implementation of lean services in companies provides high value added. FEDEX tries to do so by implementing different Lean Strategies, mainly with reduction of the different type of wastes and the application of drivers like Just in Time (JIT). Find more information in the attached article.

As covered during session 2, companies look forward to develop operational innovation to facilitate their SC. According to this trend, FEDEX just partnered up with different companies like Pizza Hut or Walmart to innovate the "Last mile delivery". They trust that this new way to deliver will be successful based on the understanding that more than 60% of the customer live closer than 3 miles away to one of the delivery stores. To get to know into detail this strategy take a look at the link attached.

Talking about the supply and demand match covered during session 3, when delivering a service management of variabilities (5 types) can be very complex. That's why while delivering the service to control supply, FEDEX bases one of their most valuable assets in their Overnight strategy. This helps to delivery a standardized service and to avoid any type of delay (also related to session 8 lean service standardized concept).

Talking about the supply and demand match covered during session 3, when delivering a service management of variabilities (5 types) can be very complex. That's why while delivering the service to control supply, FEDEX bases one of their most valuable assets in their Overnight strategy. This helps to delivery a standardised service and to avoid any type of delay.

Also, during session 3 the covered topic of Controlling Supply includes the driver of flexible locations and geographical expansion. FEDEX manages this really well by having various Hubs in different locations in which the deliveries can he hold while they're transported to final destination.

As mentioned during session 8, companies find in their employees one of their main assets. With the TQM strategy companies manage to engage employees and getting them to commit so they deliver a better service. This is one of the strategies FEDEX implements by paying extra to their employees who perform their deliveries in a correct way.

As covered during session 17, companies look forward to offer new services to look for a market expansion. In this specific session we mentioned the SCM solutions that some companies, like Amazon, now offer to their clientes, specially SCM services. Amazon has important assets in the delivery of services and FEDEX now offers different SCM solutions to their different clients. FEDEX has developed P.O., supplier and transportation management offers so they can help their clients with this topics.