Fedex Case Study on Creating Value - 1256 Words

BPSM (FedEx-UPS) Creating Value at FedEx and UPS From the companys founding close to 30 years ago, FedExs strategic competitiveness has been based on an obsession with, and careful nurturing of, delivery speed and reliability as its core competencies. These competencies have been critical to the pursuit of the opportunities that were associated with Frederick W. Smiths early vision of todays fast-cycle global economy. Believing that value could be added to business firms operations if they were to receive urgently required materials on an overnight basis, Smith pioneered what is seen as a fast and reliable, yet pricey, delivery system. Historically, the foundation of FedExs successful business model has been customers†¦show more content†¦An effective supply chain management system reduces the unpredictability of the firms operations. In turn, increased predictability reduces the firms need for the kind of expensive, rapid-fire delivery FedEx excels at providing. Being able to create value by managing its own supply chain can result in a competitive advantage for the firm. In response to changes in its external environment, as manifested by customers actions, FedEx is trying to recast itself as a major provider of the type of supply-chain management systems that now threaten the firms strategic competitiveness. Flowing from a newly designed strategic intent to become the most compelling end-to-end supply-chain solution provider in the industry, FedEx wants to design networks that client organizations can use to replace their inefficient telephone and fax transactions with digital exchanges of information. These exchanges will address a number of supply-chain management issues, including those of product demand, production schedules, and the availability of raw materials. Using its systems, FedEx believes, would create more value for the client firm than would a decision to develop and use its own supply-chain management system. FedEx thinks that, working at maximum effectiveness and efficiency, its system could enable some companies to eliminate their warehouses. In general, the FedEx system is planned to allow companies to outsource all or part of their supply-chain to a singleShow MoreRelatedCASE STUDY FEDEX VS UPS1461 Words   |  6 PagesCASE STUDY FEDEX VS UPS VS HYDER MUNAVER 29-MAR-05 The Introduction: In todays fast moving world delivery of packages, parcels, documents, goods in a timely and guaranteed manner is of absolute importance. With the fast moving trend of online businesses, auctions etc.. The need for fast and reliable package delivery is growing. The logistics industry has received globally, a lot of publicity regarding the industrys attitudes on, and actions in, corporate responsibility issues. The differentRead MoreStrategy Management/Case study/FedEx2379 Words   |  10 PagesTo assess FedEx case with Strategy Management, the first question should be asked is What is strategy? 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