Question

What are the primary kinds of control systems is FedEx using? What kinds of behaviors is the organization trying to (a) shape and (b) motivate through the use of these control systems?

Answer 1

The core functions are as follows:

1.FedEx operates six independent business units FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Trade network, and FedEx Services. They follow the tagline “ operate independently, and compete collectively”. They provide a wide range of transport solution, tailor-made to meet different clients requirements.

2.Their success is backed by logistics efficiency and competitive advantages in the IT solution back up where all cargo movement can be tracked by the customer online.

3.They shipped 3.5 million packages per day handled by 12000 employees and more than 300 miles of conveyor belt that moves thousands of packages per hour.

4.They guarantee delivery across the globe in 24-48 hours.

5.The service is available and convenient with cargo pick and drop facility from customers doorstep.

6.They handle end-to-end logistics and manage the supply chain function of many large supermarket chains, apparel brands, automobile component suppliers etc.

They have many control systems to pick, track, monitor and update the movement of the cargo and maximize the supply chain by the following measures:

• Efficiency in IT systems: Integrating information systems and IT solutions with logistics and supply chain management provide an efficient seamless integration of the entire logistics function. The system will maintain the inventory, transport raw material, provides warehousing, and deliver the finished goods to the distribution hub and subsequently from distribution points to the final end customer. The customer can track movement on a prime application software Fedex E-shipping tools a web-based application. They deliver packages across the globe efficiently with 24-48 hours framework because of efficiency in systems.

To list the e-commerce solution and systems used as follows:

1.Order management system

2.Inventory management system

3.Supply chain management system

4.Warehouse management

5.Payment processing system

6.Payroll management system

7.Sales reporting system

8.A customer relationship management system

• RFID Technology: The RFID (Radio Frequency Identification) tags are put on all cargo and assist in tracking the position of the cargo at all points. It also allows quick movement of the parcel by the position of cargo and movement from port to container to a truck is constantly monitored. This also makes custom clearance easy and reduces the chances of corruption and bribery.
• Cargo and vehicle tracking satellite system using GPS and GPRS: Global positioning systems installed in all trucks and uses satellite to monitor the movement of its fleet and cargo. It restricts misuse of transport and can track any unnecessary stops or route change if done. Further, it also can track and send information to remote locations.
• Maximizing Value chain: The staff will pick up the package from anywhere at any time. They promise money back guarantee if packages are not delivered on time. Once packages reach the warehouse they have to be efficiently sorted and dispatched to ensure delivery in the correct location. The error in sorting can reach package to different location. The customer can also track the package from pick up to delivery.

They have a model of employee empowerment, innovation, customer service and maximize use of technology to motivate and control the systems as follows:

1.People First: The management follows an employee first policy, the Founder, and CEO Fredrick Smith makes employees an integral part of the decision making process. They have a people service profit or a PSP policy. They have an employee satisfaction survey, promotions from within, employee recognition and reward system, leader evaluation system, employee complaints and suggestions open door program, etc.

2.Continuous Innovation: They have embraced change and technology to maximize customer service. They were first to implement door to door pickup and delivery. They have introduced automated hubs and good tracking systems for the cargo. The cargo handling and movement are also automatic. They provide same-day delivery to 23 cities and the cargo is transported with their being 777 fleets.

3.Excellent Customer Service: The staff is trained to go an extra mile for customers, in some cases where packages were delayed and contained baby food, the staff has gone out of the way to purchase and supply the same brand of baby food to facilitate and ease the customer.

Further, when a customer comes to deliver a package the customer should get confidence his package will reach the destination, hence FedEx employees were trained to slide the package through a window in front of the customer as the customer was uncomfortable when the package was placed in a pile.

All above give customer greater control of their cargo and help reduce costs by reducing the need to maintain excess inventories; the further customer can track their parcel from the time of shipment to time of receipt of the goods. The FedEx provides a single shipping system making it easy to plan and schedule deliveries and cargo movement.