FEDEX-HYBRID STRATEGY-VALUE CHAIN ASSIGNMENT

•1 Corporate HQ , 6 Subsidiary Business HQs, 4 Location HQs

• 6 Subsidiaries businesses- FedEx Freight Corporation, FedEx Kinko's Office and Print
Firm Infrastructure Services, FedEx Ground, FedEx Trade Networks, FedEx Custom Critical
•1800 offices in US & 135 additional location in 7 other countries & 29 commercial
product center.

Support Functions
•People-Service-Profit Philosophy (PSP)
•Survey Feedback Action Program
Human Resource •Succession Planning Executive Education
Management •Job Change Application Tracking System
•Leadership Evaluation & Awareness Process (LEAP program)
•Employee Communication Program
•Recognition & Reward Program

•COSMOS centralized computer system to manage Vehicles, people, packages, routes &
weather scenarios on the real-time basis
Technology •Large solar power plants
Development •Sens-ware tracking system-combining a GPS sensor device & a web based
collaboration platform
•Electronic Data Interface system to speed up communication between Suppliers &
Customers
•Test Class 6 vehicles employing hybrid Hydraulic technology aimed to improve mileage
greater than by 50% and reduce engine emission
•Microsoft office outlook users were given ability to connect directly to FEDEX shipping
service

Procurement •Introduced e-procurement tools as Ariba's operating resource management system

enabling initiatives like 1) negotiate better pricing, 2) improve process efficiencies, and 3)
optimize the supply chain.
• Implement web enabled Aeroxchange portal , a multi-airline B2B marketplace.
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 Primary Functions

Inbound Logistics •Electronic Data Interface system to speed up communication between Suppliers &
Customers
•Hub & Spoke sorting and distribution system with 520 facilities & 32 hubs
•5000 drop boxes at US post offices

Outbound Logistics •57000 drop off locations, 654 aircrafts & 51000 vehicles & trailers
• Parcels which were meant for residential customers used to go through sorting & line
haul series in FEDEX and home delivery by USPS (United States Postal Services)

•Quality driven Management program (QDM)

•Fleet of Boeing 757
Operations •Usage of proprietary software to cut transit time & fuel usage through smarter routing
mechanism
•Overnight delivery of low weight packets within 400 miles

•Alliances with NFL, NBA, FedEx cup, FedEx racing,

•the FedEx orange bowl, and the FedEx field
• Marketing campaigns through LinkedIn, Twitter, Facebook, Google, Microsoft
Sales & Marketing •Associated with several sports that share its attributes of speed,
•reliability, precision, teamwork and flawless execution
•The system uses a different color and descriptor to distinguish each operating company.
•Made public with a large surge of advertising commercials & visible changed
appearance of the FedEx delivery trucks.
•Freight services backed by money back guarantee

• Information tool for customers to track & manage imports

• Extended service to customers through technology for Copying & printing, Professional
After Sales & services finishing, document creation, Internet access, Computer rentals, Video conf & direct mail,
web based printing

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 Cost Leadership
1. COSMOS centralized Automated
computer system to manage Vehicles,
people, packages, routes & weather
scenarios on the real-time basis
2. Large Solar Power Plants, saving energy
and optimizing operational cost
3. Cost competency through e-
procurement tool as Ariba's operating
resource management system.
4. Outsourced approach of low weight
parcel home delivery by USPS (United
States Postal Services).
5. Usage of proprietary software to cut
transit time & fuel usage through
smarter routing mechanism
6. Usage of Hybrid, high-end Hydraulic
technology enabled fuel efficient
vehicles
08/31/2010 Supratik Choudhury-MPE-100416
Differentiators
1. FedEx has hubs all over the world, and a
fleet of over 600 aircraft. This gives a
competitive edge over other competitors
globally
2. Print and ship from anywhere services
3. FedEx has been known to update
technology
4. Agile Technology enhancements were
more frequent then other competitors
for ensuring high demand service
5. Strong Brand recall, Brand image and
Brand loyalty
6. Trade Advisory Services-Assistance with
the customs trade partnership against
terrorism (C-TPAT) Program
7. Freight services backed by money back
guarantee for certain segment of
customers
8. Overall services like International Trade
service, customs brokerage, global cargo
distribution, global trade data given
along with the mainstream service
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