The video displays different business processes involving the collection and transportation of packages by FedEx. Initially, the package is picked up from the customer's location and scanned to notify FedEx that they are now responsible for it. Subsequently, the package is transported by truck to a hub or sorting center. At this center, it goes through the FedEx Ground Automatic Sortation System, which consists of a complex network of conveyer belts. Throughout this process, multiple scans are conducted to verify basic information about the packages.
One type of scanners is used to determine the size of the box and calculate the appropriate shipping charges, while another type is used to read the code on the package and determine its destination. In case the scanners cannot read the code, employees along the conveyer belts provide assistance. Once scanned, the
...packages are transported to the airport using specially designed large containers suitable for transportation by plane. The FedEx control center oversees logistics at the airport. From there, trucks transport the product to its final destination for delivery. Before handing over the package, an employee conducts a final scan to confirm that it has been given to the correct recipient at their intended location.
The text highlights five processes of a task, including collecting, sorting, moving, dispatching, and delivery.
2) The video showcases various types of information systems. One such system is the FedEx Sorting System, which gathers important data such as package dimensions, volume, destination, and more. This can be classified as a Transaction Processing system (TPS) that efficiently processes routine transactions. In the video, this is evident through the immediate scanning of packages
measurement of boxes, and use of scales for containers. These data are essential for conducting business and ensuring successful package delivery.
The FedEx Control Center has been established at airports to guarantee efficient operations. It aids managers in syncing truck arrivals with container shipments and tracking airport and flight conditions. Thanks to the TPS, managers can be confident that packages are being correctly directed towards their intended destinations. This system is referred to as the Management Information System.
FedEx has the option to use a Customer Relationship Management (CRM) system for managing customer complaints and inquiries. A CRM system is designed to gather and address consumer feedback with the goal of improving service quality.
The video showcases an enterprise system and asks for an explanation of the reason behind this.
The key characteristics of an enterprise system are its large scale or enterprise-wide nature, integration, packaged format, and real-time functionality. In the video, all business processes are incorporated into a single software system. The data gathered during package delivery is stored in a centralized database. Regardless of the package's location, FedEx has the capability to collect data and information about its destination and attributes. This information is then shared globally within FedEx's database. Customers who utilize FedEx services have a straightforward role: FedEx employees visit their location to pick up the items they wish to send and transport them to a FedEx facility. Throughout the delivery process, the package is assigned a unique identification code that remains unchanged.
All the information, such as package size or weight, is connected to a unique number and the package undergoes another scan for
proper shipment. This data collection process is typical of Enterprise Systems, where all information is stored in one database and coordinated throughout each stage. Package weights and sizes help optimize container space and determine shipping costs. As a result, FedEx can efficiently coordinate its daily operations by utilizing its data. Additionally, the gathered data can be used anytime to generate metrics and evaluate decisions/expenses. The Enterprise System allows seamless interaction of data, offering valuable insights for improved management decision-making.
4) FedEx's business processes heavily rely on technology for their success. Technology is essential for efficiently shipping packages and ensuring they are delivered on time. It allows FedEx to be highly efficient with a minimum number of employees. In a video, a FedEx employee describes the sorting center as a "gigantic video game," emphasizing the company's reliance on technology. The company utilizes multi-directional scanners, computerized information systems, and customized containers to optimize their processes and deliver millions of packages daily.
The efficiency of FedEx is greatly enhanced by its system. The company has effectively utilized technology and implemented a well-suited information system tailored to its requirements. In terms of package transportation, FedEx has devised a reliable procedure supported by technological tools. Airport managers and employees are well-informed about any delays and the number of packages that need to be delivered. The significance of the information process in the success of FedEx has already been emphasized. Although only a small number of employees are involved in the verification process, the majority of the system has been automated. This ensures the provision of prompt and dependable package information.
Technology is involved in all
aspects of the process, including information control. However, there are unpredictable factors like weather conditions and road accidents that technology cannot anticipate.
5) There are various shipping processes that FedEx could implement to further enhance its efficiency in shipping.
One potential solution for the firm to save time and reduce costs in collecting and distributing packages is by establishing new partnerships with national post offices. By doing so, the firm can benefit from utilizing the network of post offices, which would bring them closer to their customers and allow them to take advantage of their distribution capabilities.
FedEx could consider using Consumer Right Management Information Systems (CRMIS) to offer door-to-door delivery exclusively to its Premium customers, based on their cash flow. This personalized service would allow FedEx to tailor its revenue and improve customer satisfaction. For regular package senders who find going to a collection point inconvenient, door-to-door service can be seen as a luxury. However, implementing collection points nationwide could also be a viable solution.
The company needs to change its vision from prioritizing overnight service to being more customer-oriented. This shift should be supported by employees and rely on information systems for enhancing customer service.
The Differentiation strategy, which is based on Michael Porter's matrix, revolves around two crucial advantages.
The relationship between business process and IT is evident in the ability to track packages throughout the shipping process. This provides added value to customers by improving customer service and reducing company costs. One way to increase efficiency is by eliminating the need for a second scanner, saving time.
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