-FedEx's Tight Focus on Strategic Information Systems
This emphasis on IT innovation has gained FedEx a 30 percent share in the highly competitive business to consumer express delivery market, according to Chris Newton, a senior analyst of supply chain strategies for AMR Research in Boston (CIO Magazine, 2001). In my opinion, FedEx knows that without IT their business is liveless. They look beyond transportation from point A to point B but focus on value-added services that they want to put around package movement, especially the ability to see into the movement itself. That is what FedEx has sold successfully selling. In my analysis, this is how they have positioning themselves with clients.
The company, which claims to have the only fully automated hub network in the ground package industry as of December 3, 2002 , FedEx also plans to introduce new facilities that will use the most advanced material handling and scanning systems available in the world to enhance the efficiency of its package sorting operations.
-Higher Demand for FedEx Resulting in Market Share Growth
FedEx claimed it expects to handle as many as 2.6 million packages a day during December 2002 . In the company's most recent quarter, ended Aug. 31, average daily volume was 2.1 million packages. FedEx passed the 2 million mark for the first time during the holiday season last year. At the end of September this year, it undertook a six-year, $1.8 billion project to expand its daily package capacity to 4.8 million.
In my opinion, FedEx's customers chose them because of the impressive customer service made possible by their strategic systems that offered more information on their package than any other transportation company. FedEx is also able to customise their services for special needs and occasions, such as urgent packages even on public holidays...