Q1. How has IT changed the definition of “logistics”?
1. Integration of supply chain
Past
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Now
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Business base( buy and sell service)
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Physical goods delivery
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Information & goods delivery
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2. Coordination and control of the Product Movement
Though the IT SYSTEM e.g. VMI, Supplier and Producer will share the information and turn the information to be the data in the database and predict and forecast the ROS & EOQ of each product. There is better control of the stock and shortage.
3. To strengthen the ability to share information between operations or departments within a company and between organizations so as to generate operational efficiencies, reduce costs and improve customer services
4. With the advent of IT, express transportation became an aggregation of two main functions: the physical delivery of parcels, and the management and utilization of the flow of information pertaining to the physical delivery (i.e., control over the movement of goods).
5. With the expanded logistics management service, the company is now focus on both inbound and outbound material flow, also focus within companies and the movement of finished goods from dock-to-dock.
6. By adding the just-in-time inventory management, it helps to redefine the company and to re-engineer their selling and supply-chains. Information came to replace inventory. The system also helped to reduce costs and improve efficiency.
Q2 List the benefits of a virtual supply chain
1. Building one-to-one relationships with their customers
Adopting the Electronic data interchange (EDI), it provides integrated logistics systems formed the basis of many partnership arrangements. By helping customers to redefine sources and procurement strategies so as to link in with other parties in the supply-chain, such as raw materials suppliers.
Consequence: To squeeze time and inventory out of the system and increase profitability and reduce costs.
Second, Virtual supply chain helps identify and accommodate demand between buyer and seller electronically and provide efficient gathering and dissemination of real-time data.
Second, Virtual supply chain helps identify and accommodate demand between buyer and seller electronically and provide efficient gathering and dissemination of real-time data.
2. Improving efficiency and control
Launching a series of technological systems (Power Ship) to provide proprietary on-line services serving over 100,000 or most active customers online. Additional services including store frequently used addresses, label printing, online package pick-up requests and package tracking
Launching a series of technological systems (Power Ship) to provide proprietary on-line services serving over 100,000 or most active customers online. Additional services including store frequently used addresses, label printing, online package pick-up requests and package tracking
3. Keeping track of all packages handled by the Company On-line System (COSMOS)
First, it manages vehicles, people, packages, routes and weather scenarios on real time.
Second, COSMOS relays data on package movement, pickup, invoicing and delivery so as to send to a central database at Memphis headquarters.
Third, it places a bar-code on each parcel at the point of pickup, the bar-code can be scanned at each stage of the delivery cycle
First, it manages vehicles, people, packages, routes and weather scenarios on real time.
Second, COSMOS relays data on package movement, pickup, invoicing and delivery so as to send to a central database at Memphis headquarters.
Third, it places a bar-code on each parcel at the point of pickup, the bar-code can be scanned at each stage of the delivery cycle
Q3. Discuss the role of IT in FedEx’s Business Strategy
In order to provide a surprised service to customers of FedEx Corp, traditional way of logistic has to be re-engineered and re-organized and highly customized. FedEx Corp is not only focus on transshipment of each transaction , other value-added service included
1. Promoting the Globalization of Commerce
- Increase the ability to information sharing
- Increase the information flow within the company and between department-to-department and operation-to-operation
- Increase operational efficiencies
- Reduce cost
- Improve customer services
2. Create the opportunity in Logistic Management
- Internet and intranet to re-engineer the supply-chain
o Integration of customer supply-chain
o Customer check their orders anytime and anyplace(RFID )
- Just-in-time inventory management system
o Sharing the information between different department or external organization
o Efficient way to reduce cost and improve CRM
3. Change the Market Demand & Value-Added Services
- To provide Value-Added activities
o PowerShip systems can improve efficiency and control.
o Provided additional services to the customer
o Including storing of frequently used addresses, label printing, on-line package pick-up requests, package tracking.
o COSMOS system (Customer, Operations, Service, Master On-line System).
o Whenever new information was entered into the system by FedEx or by customers through the Internet
All related files and databases were automatically updated.
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Q4. Discuss the virtual integration of supply chains without ownership
Virtual integration used to describe the use of the Internet to replace physical components of a company with information. Abusiness engaged in virtual integration owns only their brand and their clients. This eliminates the need to physically produce,ship or handle any products as they are now outsourced.
FedEx aims to provide a platform in order to . And link in with other parties in the supply-chain, such as raw materials suppliers, customers were outsourcing their supply-chain management functions to FedEx, functions that were seen as peripheral to the core of their business.
FedEx aims to provide a platform in order to . And link in with other parties in the supply-chain, such as raw materials suppliers, customers were outsourcing their supply-chain management functions to FedEx, functions that were seen as peripheral to the core of their business.
FedEx introduced PowerShip programme, provided additional services to the customer, including storing of frequently used addresses, label printing, on-line package pick-up requests, package tracking, etc.
For example,Cisco
It has developed an extranet that allowed its customers to order FedEx services without leaving the Cisco Website. By integrating its services within the supply-chain of its customers, and thus generating increases in customer loyalty and in customers. FedEx managed to effectively raise the barriers to entry for competitors.
Take a company called Li & Fung as an example, they have been involving in many business sectors such as garment manufacturering. In the past, they usually take care all of the works ranging from designing, marketing to transportation. But, now, it outsources some of the production process to other factories and With the assistance of faster information flow through the internet, they , themselves, are only responsible for coordinate all the works and deliver products to the end-users.
Q5 What are the factors that put pressure on FedEx to consolidate its operations, while remaining customer-focused?
The Factors that put pressure on FedEx to consolidate its operations while remaining customer-focused
1. The Internet
The Internet lead to the demanding global solutions and thus the company has to consolidate the systems. In order to deal with different languages, currencies and cultures, it is essential for the company to develop global systems for worldwide implementation.
2. Subsidiary company
To be competitive in the industry, it is necessary to consolidate the operations of the subsidiary company. As a result, the whole business can provide more business solutions.
To be competitive in the industry, it is necessary to consolidate the operations of the subsidiary company. As a result, the whole business can provide more business solutions.
3. Demand for quality service by customers
Customers always hope to feel convenient when doing business with the company. In order to attract all the customers with different size of transaction, One toll-free telephone number, one Website, one invoice and account number, one sales team, one customer service team and a streamlined customer automation platform are provided.
Customers always hope to feel convenient when doing business with the company. In order to attract all the customers with different size of transaction, One toll-free telephone number, one Website, one invoice and account number, one sales team, one customer service team and a streamlined customer automation platform are provided.
4. Reduce Customer confusion
As the information spread among the groups of FedEx, the resources were duplicated. As to
