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Examining The Advancements Of Fedex Systems Information Technology Essay

Paper Type: Free Essay Subject: Information Technology
Wordcount: 1929 words Published: 1st Jan 2015

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FedEx Custom Critical is North America’s largest, time-specific expedited carrier. Part of the $29 billion FedEx family of companies, FedEx Custom Critical offers 24/7 service throughout the U.S. and internationally, providing nonstop door-to-door delivery, fast and reliable delivery to every U.S address and to more than 200 countries and territories.


More than 140,000 employees worldwide.

Average Daily volume

Approximately 3.5 million packages and 11 million pounds of freight.

-Its main strategy is working on three levels which are:

1- Compete collectively; by standing as one brand worldwide.

2-Operate independently; meeting customer needs by focusing on their independents networks.

3-Manage collaboratively; by sustaining loyal relationships with their workforce, customers and investors.

Question 2 :-

Surely, any successful firm has to face problems and impediments, in order to attain the highest possible success. FedEx faced too many problems in daily operation jobs which make work impossible to do, but thanks to the successful management team and the usage of successful information systems, they faced these obstacles effectively.

Mentioned below some of problems FedEx faced, and their solutions:

-Problem 1:

-As FedEx agents work together with customers, doing whatever is necessary to meet customers’ needs, so it is essential for agents to be able to listen to calls and verify that information was noted correctly, and transferred accurately between teams and across shifts. Accordingly, they wanted to be able to effectively service all customers, by identifying immediately the potential need for directing a call to a different division that is better positioned to provide the required services. Thus, they have to ensure that no opportunities are lost.


FedEx is using NICE Performs advanced speech analytics to flag and divert calls to the relevant division. Being able to spot these calls and take immediate action allows FedEx to take corrective action, resulting in increased customer satisfaction, as well as maximized revenue.

(Nice Perform is a fully integrated suite of solutions that extracts critical business insight from customer interactions. It applies advanced interaction and speech analytics to locate, tie in and help understand information that is normally disbanded and difficult to decode. It brings meaning and value to the information contained in the thousands of customer interactions that come into a contact center every day. With capabilities such as speech recognition, emotion detection, customer feedback, and call flow analysis, it enables decision makers in the contact center and throughout the enterprise better understand and foresee market and customer dynamics, make more informed business decisions, take immediate action to implement change, reduce risk and drive business performance.)

-Problem 2:

– FedEx recognized the logistics challenges facing the retail sector which range from physical restrictions on deliveries to stores with limited access such as airports and shopping centers to security issues in addition to this many logistics firms deliver stuff during vertex sales time which results in wasting time of employees and adding disturbance to jobs.


-FedEx upgraded its Customer Relationship Management Systems CRM (Customer -relation management) to optimize revenue, customer satisfaction and customer retention thus FedEx developed the in-night delivery service specifically to address these challenges. In-night service allow stock delivery straight into store, at night and with no need for stuff supervision enabling staff to concentrate on sales and service only during the critical trading hours as a result preventing waste of time. By analyzing the importance of customer relationship, CRM helped FedEx to successfully accomplish the following:-

View all customer transactions, respond confidently to customer calls and emails, capture important information about customer interactions, and manage tasks and follow-up activities.

Detect missed sales opportunities and to optimize revenue.

Consolidate and integrate customer information from multiple communications channels. (Call centers, e-mail, retail outlets, etc…)

-Also FedEx with its development in technology developed a unique in-house system called EMBRACE to provide customers with every possible management information tool. Unlike traditional paper systems that rely on staff presence for delivery proof EMBRACE provides real-time electronic proof of delivery, even when stores are shut. Available in real-time online 24/7, EMBRACE gives instant access to delivery information, providing traceable confirmation as well as total customer certainty.

Track and trace from pick-up to final destination.

Innovative barcode system ensures 100% data integrity.

24/7 online access to real-time scans and proof of delivery information.

GPRS-enabled for location confirmation.

Proactive exception reporting.

Total transparency and visibility for our customers.

-FedEx also cares about building strong relationships with its suppliers as a part of SCM (Supply Chain Management Systems). Looking at supply chain management from a cost angle, it represents the total expenses incurred by a company to acquire materials, maintain inventory, process and fulfill orders, manage transportation, deliver to end-customers, and manage information systems throughout the process. FedEx to simultaneously support the unique needs of their operating company and ensure the

lowest possible total cost to the corporation, purchasing for FedEx Office is performed at both the corporate FedEx and individual operating company FedEx Office levels.

– At the operating company level, FedEx Office purchases the products and services that are highly unique to their needs. In addition to this FedEx offers the widest array of transportation, e-commerce and supply chain solutions in the world, FedEx Office seeks to purchase from companies who also understand that value and will work with them to optimize their collective supply chains to reduce total costs of ownership.

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-FedEx also cares about applying KMS (Knowledge management system) through identifying, creating, representing, distributing and enabling adoption of experiences, such experiences comprise Knowledge, improved performance, competitive advantage, innovation, the sharing of lessons learned, integration and continuous improvement of the organization are main parts of KMS that FedEx exerts efforts to focus on since it considers knowledge management a strategic asset.

As listed above the FedEx company has faced too many obstacles. Thus, information system was introduced in the company to solve the problems.

Question 3:

As dimensions of systems (Management, organization, and technology) are the most important sections of a company which got the power to provide solutions to challenges and problems in the business environment. They play the most important roles to achieve broader information systems literacy such as behavioral issues as well as technical issues surrounding the development, use and effect of information systems used by managers and employees in the firm. By exploring their roles and how they work together, they create information system solution to the problem.

The figure below shows how it’s important to merge roles and offers facilities among the whole organization, in order to obtain the efficient business solutions:

Business challenges



Business solutions

Information System



The key elements of FedEx are its people, structure, business processes, politics, and culture. FedEx serves more than 220 countries and territories, connecting more than 90 percent of the world’s gross domestic product within 24 to 48 hours. Their greatest assets are the 290,000 men and women who work daily to fulfill the “Purple Promise,” the collective commitment to make every FedEx experience outstanding. Their culture has repeatedly been recognized, making FedEx one of the best companies to work for around the world: Couriers, pilots, meteorologists, customer service agents and package handlers are just of few of the team members who must execute faultless to deliver the award-winning service the customers expect.


The management section’s job is to make sense out of the many situations; either a daily-routine problem or a non-routine obstacle. Managers setting organizational strategy responding to the faced problems, and allocate the human and financial resources to coordinate the work and achieve efficiency and effectiveness. Also, creating new products and setting market strategies. With US$ 37.953 billion revenue and US$ 1.125 billion net income, the management section applied efficiently the successful organization strategy.


By using the updated information technology, whether by:

Computer hardware. (Input, Processing, and Output activities)

Computer software. (Preprogrammed instructions controlling components of IS)

Data management Technology. (Software governing data in storage media)

Networking and telecommunications technology. ( Physical devices and software)

And the usage of the Internet through tracking client’s orders online, and multiples software such as EMBRACE or Nice Performs, bar-code scanning system, and wireless networks for tracking packages, calculating fees, maintaining customer accounts, and managing logistics. FedEx applied the highest available technology in order to attain the highest commitment and loyalty to customers and courier services firm.

-As it’s shown in the figure, in order to attain the efficient business solutions, all sections have to provide information with all other sections, by the usage of effectiveness information system.

Question 4:

-FedEx started out in 1971, offering higher quality services and lowest rates. FedEx became the world’s largest ground and air package distribution company. It is a global enterprise with more than 280,000 team members worldwide, more than 80,000 motorized vehicles for express, ground, freight and expedited delivery service, and the world’s second largest airline.

FedEx nowadays, delivers more than 8 million shipments each day in more than 220 worldwide countries and territories, and 684 aircraft; more than 375 airports served worldwide.

Thanks to the highly efficient management systems and the usage of the highest information system quality as shown in the figure, FedEx enjoys the highest rank among the courier and shipment fields. In addition, the customers loyalty and confidence which are the most important targets to FedEx.

Recent Awards offered to FedEx:

FORTUNE magazine: No. 13 among “World’s Most Admired Companies” (2010)

FORTUNE magazine: “100 Best Places to Work For” (2010)

Dow Jones Sustainability Index – North America (2010)

FORTUNE magazine: “Top Companies for Leaders” (2009)


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