Case Study : How FedEx Works?

Enterprise Systems
1. List the business processes displayed in the video.

A business process is a collection of related, structured activities or tasks that produce a

specific service or product for a particular customer(s). In Fedex case the business
processes can be identified under following points mentioned herein as under :

* Package collection from homes.

* Scan the package from a portable device which is interfaced with the central system
that informs FedEx that package has been picked by one of its collectors.

* All the packages in a specific location are picked up and transferred into a big vehicle
which carries the packages to a big hub called "sorting centre".

* All the packages are off-loaded on to the sorting belt at the hub centre where volume
and weight is calculated for each package separately to determine their incurring /freight
charges for the customers.

* Packages are segregated on the belts according to their destinations.

* Un-sized and un-read packages are segregated manually.

* After sorting the packages, they are loaded into big containers and weighed.

* These containers are loaded into jets for shipments.

* The whole process of controlling and monitoring is taken place at airport. FedEx
representatives are available for continued monitoring of the flights and the package
status.

* Jets are offloaded at the desired destination and the whole aforementioned process of
scanning and sorting is done accordingly to deliver the packages at requested destination
within the location signifying the completion of transaction.

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2. List the types of information systems shown in the video. Can you describe how
systems that were not shown might be used at FedEx?

a. Transaction Processing Systems in the form of the FedEx Sorting System that
generates data about each package's weight, width, length, volume, destination, etc.

b. Scanners.

c. Price Tracking System.

d. Destination Locator.

e. Bar Code Readers.

f. Package Handling and controlling system at airport.

g. Segregator.

h. Security Compliance system.

i. Management Information Systems and Decision Support Systems in the FedEx Control
Center that serve the middle managers in this center and help them coordinates the
arrival of trucks and monitors airport and airplane conditions based on data provided from
TPS to make sure that they made the appropriate routing and each package goes to its
right destination.

The type of information systems that was not shown in the video is the Executive Support
System. Executive Support System (ESS) is a reporting tool and might be used by FedEx
by allowing it to turn the data provided from the TPS and MIS into useful summarized
reports. These reports can be used by executive level managers for quick access to
reports coming from all FedEx levels and departments such as billing, cost accounting,
staffing, scheduling, and more. In addition to providing quick access to organized data
from departments, some Executive Support System tools also might provide analysis
tools that predict a series of performance outcomes over time using the input data. This
type of ESS is useful to executives as it provides possible outcomes and quick reference
to statistics and numbers needed for decision-making.

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3. The system displayed in the video is an enterprise system. Why is this true?
Explain your answer.

The FedEx system displayed in the video is an enterprise system because it permits the
integration of data generated and held in FedEx system, and permits the integration of
the computer systems that run all phases of a Fedex's operations to facilitate cooperation
and coordination of work across the enterprise. The intent is to integrate core business
processes (accounting, finance, human resources, sorting and shipment, etc.). The ideal
enterprise system could control all major business processes in real time via single
software architecture. In other words, this system collects data from different functions
and stores data in single central data depository. As was clearly shown in the video, the
FedEx system enables coordination of daily activities. For example, scanning a package
after picking it up enters it into the system and assures that the package has been
received. Then after reaching the sorting center, special scanners can measure the size
of the package to charge customers based on the size. Other scanners that read the
labels on the boxes generate information about the destination of each package which
helps in the routing process. Moreover, the FedEx system enables efficient response to
customer package shipment orders, and provides valuable information for improving
management decision making in routing for example.

4. How important is technology to FedEx's business processes?

As businesses become more competitive in the global marketplace, information and

technology have become increasingly important. Over the years, the FedEx name has
become synonymous with a tradition of automation, customer service and technological
leadership. Since the company pioneered tracking and routing technologies, FedEx has
developed large integrated telecommunications and information systems. FedEx provides
two services to its customers: the physical transportation and distribution of packages
and the information systems that identify the location of a package at any time. As the
leader in the express transportation industry, FedEx was the first to install computers in
vans, provide sophisticated automation in the mailroom and develop tracking capabilities
and software. Customers have come to depend on the reliability and high rate of
efficiency of these systems.
FedEx Provides shipment visibility, status notifications and alerts about critical shipment
events, thereby equipping customers with an unsurpassed capability to plan for and
manage inventory in motion. FedEx identifies FedEx Express shipments by associating
them to a customer and by matching an account number or company name and address,

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placing flexibility and control of information in the hands of each user.

5. How could FedEx's shipping process be made even more efficient?

After observing the video, FedEx has made its shipping process more efficient by filling
every inch of the containers used to carry the packages on the aircrafts. Moreover, the
containers are in different shapes designed specifically to fit into the aircraft they will be
on. As we noticed in the video, the containers' edges are not perfectly square in order to
fit into the aircraft.
FedEx's worldwide marketing goal is to create a consistent, brand-building messaging
and design across all customer communications. In continuing with the growth
opportunity of globalization, and the service extension into new and untapped markets, I
think that if FedEx attempts to unify the diverse markets by standardizing its product, this
will increase efficiency of shipment and reduce costs through uniform corporate
responsiveness.

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