FedEx and Operations Management

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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.

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