Fedex Supply Chain Analysis

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Shipping out the merchandise or parcel boxes through four main supply chain companies. These companies are FedEx, UPS (United Parcel Services), USPS (United State Postal Services), and DHL Express. American consumers have spent more than $50 billion dollar on shipping the small envelope to larger boxes since 2000. The parcel distribution patterns are developed according to U.S. manufacturing companies are operating. The expansion of the Internet reaches to the direct marketing with the retail transactions, which requires the home delivery. Also, globalization created the need for parcel carriers to expand in worldwide. UPS and FedEx are the prominent parcel distribution companies in the USA. For the last several years, FedEx has expanded…show more content…
It has more than two hundred ninety thousand employees and contractors worldwide. In April 2003, FedEx supply chain services (FedEx corporation group) were selected as the “ supplier of the year” for offering excellent logistics and supply chain management services in the fifth consecutive year that shows FedEx corporation distinct. FedEx started offering SCM (Supply Chain Management) services to its customers on a very small scale in 1974. The increasing of the demand for their services, FedEx has established FedEx logistics services in 1989. This group of people specifically focused on managing the supply chain of corporate customers. As soon as, FedEx built its technology through intensive SCM service, the company offered a world-class SCM solution to their clients according to their requirements, which made FedEx to earn significant appreciation from their…show more content…
The UPS and FedEx are the fastest growing company based on Internet logistics. Internet technology enables the customers to link directly with the retailers and their manufactures. Both companies served almost all of the online market in these days, which provides the information on packages to their customers through the tracking systems on the website. It allows the customers to plan ahead to receive the merchandise, as well as it helps the FedEx/UPS operation to decrease the delays in deliveries. As a result, this strategy allows the company to achieve the faster transactions and lower communication costs. According to the current trend, the FexEX and UPS creates the partnership with the largest Internet retailers (Wal-mart,, Macy’s, and many more), which allows the FedEx and UPS to expand their overall delivery volume. These companies improve their tracking system by implementing several technological innovations. Such as, laser scanner, art software programs, cell phone communication equipment, barcode systems, electronic information interchanges, and the internet. The FedEx purchasing department is evaluating the supplies, which support the operations department. It ensures that the operations have enough materials or equipments for running the operations effectively. They also work with the receiving department in regards to inventory of stocks,

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