Reports on FedEx Operations :
FedEx: Leveraging IT for a Competitive Advantage
Submitted by :
Other & Elimination
FedEx can be successful only when it can integrate all the suppliers who currently supply spare parts to the manufacturers . FedEx , suppliers and manufacturers, if all the three come on the same platform , then only it would be possible for the FedEx to act as intermediary between suppliers and auto manufacturers to become a logistics provider and to provide supplies using Just-in-Time delivery concept .
In providing Just-In-Time delivery supply , FedEx will act as 3PL Provider ( Third Party Logistic Provider ).
Let us understand why the manufacturing companies would use 3PL for managing its supply chain.
Companies typically outsource logistics and transportations services to 3PL because
Outsourced services are more cost effective than maintaining in-house capability.
Companies continue to focus on their core competencies and outsource non-core activities
Companies don't have the in-house resources or expertise to manage the complex supply chain
The evolution towards JIT (Just-In-Time ) manufacturing , which demands reliable , timely delivery both of parts to the plant and of finished products to the consumers , creates a sense of urgency and builds complexity into the supply chain .
A 3PL like FedEx needs to integrate itself with few customer and takes over their entire logistics functions with extensive and detailed tasks .
FedEx needs to help manufacturing companies by providing flexible shipment planning that can help lower transportation expenses through a process of consolidation...