Ensayo Caso Fedex

http://es.scribd.com/doc/91354613/AB311-Individual-Case-Assignment-Fedex-Corp


http://es.scribd.com/doc/17713448/Caso-3-Semana-6-Fedex


Case 20


FedEx Corp.: Structural Transformation through eBusiness


Overview

In January 2000 FedEx was the world’s largest overnight package carrier with service in 210 countries and a 30 percent global market share. The company operated 34,000drop-off locations and had a fleet of 648 aircraft and more than 60,000 vehicles. FedEx also managed over 10 million square feet of warehouse space worldwide. The company was best known for its overnight delivery service, but had transformed itself into a global logistics and supply-chain management company through investments in information technology (IT) systems and acquisitions. The companyhad spent as much as $1 billion annually during the late-1990s on IT developments plus millions more on capital expenditures. It had also built an IT workforce of more than 5,000 employees.

The largest component of FedEx’s logistics business was its overnight delivery business that accounted for $14 billion in annual sales and three million packages per day. The company also operated RPS, NorthAmerica’s second largest provider of business-to-business ground small package deliveries. In 2000 RPS handled 1.5 million packages per day, operated 8,600 vehicles, and achieved annual revenues of $1.9 billion. The company also owned Viking Freight, which was the first less-than-truckload freight carrier in the western U.S. Viking Freight managed a fleet of 7,660 vehicles and 64 service centersand shipped 13,000 packages per day in 2000. FedEx also owned Roberts Express, which was the world’s leading surface-expedited carrier with more than 1,000 shipments per day. Surface-expedited carriers had been described as the limousine service of freight since they undertook only the most urgent shipping requests such as critical parts needed to restore production in manufacturing facilities thathad lost production capability. The acquisition of Caliper Logistics in 1998 moved FedEx further into total supply chain management business since the acquisition provided FedEx with resources and competencies necessary to offer customized, integrated logistics and warehousing solutions.

However, despite having all the ingredients for the makings of a successful e-business, FedEx’s logisticsand supply chain operations were struggling to excel and its operating income from its core overnight parcel delivery business had begun to decline. In response to the company’s stagnant growth, FedEx announced major reorganizations that included:

ν A new branding strategy that created five FedEx branded subsidiaries rather than a variety of logistics businesses with dissimilar names.

νThe creation of a single point of access for all types of customers and the development of common marketing, sales customer service, information technology, and invoicing functions.

ν The introduction of FedEx Home Delivery, a new low-cost residential delivery service.

The combined effect of the reorganization efforts was to promote the company as a one-stop shop for large companiesseeking to outsource shipping, logistics, supply chain, and e-business functions. Some analysts questioned whether the new structure would work, given that there would still be different teams of delivery and pick-up staff for the different operations.


Suggestions for Using the Case

The case focuses on FedEx’s efforts to expand beyond the overnight parcel delivery business to become a providerof global logistics and supply chain management services. The case is best scheduled later in your business strategy module. The case is more difficult because it requires students to evaluate just how the company’s use of information technology impacts the competitiveness of its overnight delivery business and logistics and supply chain management businesses.

The FedEx case challenges...