Introduction
Operations management focuses on carefully managing the processes to reduce and distribute products and services. Related activities include managing purchases, inventory control, quality control, storages, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how the operations management is carried out in an organisation depends very much on the nature of products or services in the organisation, for example, retail, manufacturing, wholesale and etcetera.
For operations management to be successful, the function of the operation must be first be defined. The degree to which this is achieved is a measure of effectiveness, the key objective of operations management. Efficiency is less important since there is no point in which carrying out an irrelevant, or worse damaging, activity effectively. Effectiveness means achieving objectives, efficiency means consuming minimum resources. While both are desirable, the former is of overriding importance.
FedEx as 3rd party logistics service provider
FedEx is one of the world’s largest freight companies it is based in Memphis, Tennessee and employs more than 290,000 employees and contractors worldwide.
In April 2003, FedEx Supply Chain Services (FSCS) a group company of FedEx Corporation was selected as the “Supplier of the Year” for offering excellent logistics and supply chain management (SCM) services. This was the fifth consecutive year FSCS received the distinction.
FedEx started offering SCM services to its customers on a very small scale in 1974.With increasing demand for services such as in...
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...ther or mechanical or even customs delay. Customers were upset of these issues when they were expected to have on-time delivery of their shipments.
As a solution for these issues, ensuring the shipments meet the daily cut-off schedule. Customers are to be informed proactively if there are any flight delays so that customers can give further instructions or they can make other arrangements. For customs issues, customers are to be educated of the different countries customs requirements and to notify customs delay.
In all, supply chain operation management has helped many global companies in handling and distributing their products as it is a one-stop solution provider from one warehouse direct to end user. By building trust among the trading partners with effective communications would improve performance metrics both the company and the solutions provider.
Base on the product market fit, Courier Pak completely fit the company, from the environmental, company, cost and competitive standpoint. So we think that FedEx should devote special emphasize to Courier Pak.
The following case describes FedEx’s transition from a single segment Express shipping company to a fully integrated, multi-faceted corporation. At the beginning, Federal Express was an air express transportation system designed specifically for shipping time-sensitive items like urgent documents or medicines. After receiving a large investment, Federal Express began its first night of operations on April 17, 1973. Within the first 10 years, Federal Express became the first U.S. start-up to achieve $1 billion in revenues. Nevertheless, in the late 1990’s with the development of technology, FedEx began to express concern in some areas of business. E-mail, its competitors (UPS), new innovative supply chain strategies with low production
Sheridan Garrison was committed to connecting with their people to ascertain how they felt though constant communication. FedEx and scriptures put emphasis on building trust and putting the needs of other before your own. Employee satisfaction results from the experience of one’s job and the atmosphere. Consistent with Brown, Gray, McHardy, &Taylor (2015), employee trust within the workplace influences workplace performance. Furthermore, Philippians 2:4-5 conveys that we should not only look out for our own interests, but take an interest in others, as well. You must have the same attitude that Christ had. FedEx Freight’s policy and scripture are very similar. They both relate to putting the needs of others before your own and the importance of trust in our leadership. Isaiah 26:3-4 declares that the Lord will keep him in perfect peace whose mind is stayed on him, because he trusts in him. Trust in the Lord forever, for the Lord God is an everlasting
¡§The Design, setting up, operation, and continuous evaluation of internal and external systems that deliver a product or a service to the customer is called Operations Management.¡¨(Alan Carroll, 2003)
Federal Express is the world’s largest package delivery company today. They have been successful mainly because of their technological advancements. Technology has allowed them to have superior customer service and quality that was unparalleled by any company. No company was able to offer overnight delivery of packages with the speed and precision that Federal Express did. Although Federal Express remains ahead of its competition today, their advantages over other firms in the industry are slowly diminishing.
FedEx provides shipping services through FedEx Express, Ground, Freight, Custom Critical, Trade Networks, and Supply Chain (FedEx, 2014). Tracking and package management services are available for all services through fedex.com (FedEx, 2014). FedEx also shares knowledge of shipping best practices on its website (FedEx, 2014). FedEx Office is another division of FedEx, where customers have an in-store option for taking care of their shipping, copying, and printing needs (FedEx, 2014). FedEx connects our global economy by linking 99 percent of the world’s GDP (FedEx, 2014). FedEx Express services every US address, as well as 220 other countries (FedEx, 2014). Some of the corporation’s new services include FedEx Delivery Manager and One Rate (FedEx, 2014). FedEx Delivery Manager is a service that is tailored to the needs of the recipient of a package (FedEx, 2014). FedEx One Rate is simply that, flat-rate shipping without the weighing and measuring (FedEx, 2014).
Besides to the dramatic change of internet to the consumer purchasing pattern and retailer selling pattern, the consumer today have become less tolerant of service failures and likely to expect better services that are more than the average. In addition to this, the consumer demands more for personalized service. It can be a difficult task for FedEx to satisfy all customer needs.
FedEx was mentioned in the best 100 of Fortune 500 Companies and 10 most admired companies (CNN Money 2013). This factor proves that FedEx is performing the best in logistic industry, therefore, can also be assumed as the market leader of the whole logistic market and there would be analysis on the performance of FedEx in marketing management and how the company is strategically operating in the industry.
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
To begin with, I would like to emphasise the fact that operation management in the business industry is very important. Operation management is the management of the process that produce or deliver services or goods. It essential to say that the organisations transmit the input into output. Interestingly operation management has two aims, firstly the supply chain management which is the management of the interconnection of organisation that relate to each other through upstream and downstream linkages between the process. It is produce value to ultimate customer in the form of products and services. The second one is logistics, logistics in the process that an organisation make in order to get the correct materials with perfect quality to the right customers or places. As the result of this transformation business management has four characteristics: VOLUME- VARIETY – VARIATION – VISIBILITY. Furthermore there are five operations performance
Today’s organizations are faced with increasing levels of global competition, customer’s demanding value for their money and high stakeholders expectations on investment returns. Gattorna (2003), notes that firms are now pursuing supply chain management as a strategy to competitive advantage. Firms in a supply chain relate, transact, and partner on different levels; from product design and development to product delivery. Through supply chain management a firm pursues value creation through timely product delivery, cost management, inventory control and customer service (Beamon, 1999).They do so individually or through synergies formed with other organizations to increase customer service
So retails store in New Zealand face problem of stockpile or storage of winter as well as summer product. Due to high competition retails store cannot lose their customers So Inventory manager can be a beneficial for the business to have a look on their operation and use its knowledge to efficiently manage the inventory and stock and logistics of the business he can use different techniques like just in time or EOQ method so that smooth functioning of business can take place. But one of the most beneficial techniques now days operation manager in retail and fashion industry use is postponement logistics. In this method they postponement the logistics of final goods from the country in which it is manufactured because most of clothing brand in New Zealand have their supplier in Asian countries like India, china, and Bangladesh.
In the following years, Federal Express kept growing and expanding it’s network, now employing over 290,000 workers worldwide, and delivering more than 3 millions express packages to over 200 countries daily.
Operations management is a field of management concerned with controlling the process of production and designing supervising, organizing and planning in the contexts of production. Also it includes business operations in the production of goods and services. It has the responsibility for ensuring that business operations are benefit and efficient. In other words, organization successfully processes from inputs to outputs in an efficient way. It is concerned to manage the process that turns inputs like raw materials, energy and labor (human resources- staff or workers) into outputs such as goods and services. There are two terms about operations management, which is supply chain management and logistics. Operations management has firm foundations
The business is related to a manufacturing concern; therefore, the importance of enhancing manufacturing operations seems to increase. Manufacturing operations management is commonly known as MOM (Daft, Kendrick & Vershinina, 2010). Management of operations is basically a process which reviews the manufacturing or production process with an intention to maximize the production efficiency. Manufacturing operations management is thoroughly divided into many different arenas like production management, supply chain management, analysis of performance, quality and compliance and many others. Manufacturing operations management revolves around all the underlying production processes (Hills & Jones, 2009).