itfm report - fedex - section b

8/8/2019 ITFM Report - FedEx - Section B

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ITFM Project Report

Anil Anand 10066

Ashitha Thaddaeus 10073

Jyothi Kumari 10081

K Swetha Nandana 10082

Kundal Mahanta 10085

Ragunandan V R - 10095

8/16/2010

Project Report submitted to Prof. Mohammed Minhaj for partial fulfillment of requirements of the

course CSYS 1001 Information Technology For Management


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ITF

jec

e

Fe

Ex

SD

IMD

GDM 2010-12 2

Contents

1 0Fe Ex Corporation ................................ ................................ ................................ ....................... 4

2.0Strate

ic Business Units ................................ ................................ ................................ ............... 6

2.1Fe ExExpress ................................ ................................ ................................ .......................... 6

2.1.1Fe ExSupply Chain ................................ ................................ ................................ ........... 6

2.1.2 Fe

Ex Trade Networks................................ ................................ ................................ ....... 8

2.2 FedExGround ................................ ................................ ................................ .......................... 9

2.2.1FedExS

artPost ................................ ................................ ................................ ............... 9

2.3 FedExFreight ................................ ................................ ................................ ......................... 10

2.3.1FedEx Custom Critical ................................ ................................ ................................ ...... 10

2.4 FedExServices................................ ................................ ................................ ........................ 12

2.4.1FedEx Office ................................ ................................ ................................ .................... 12

2.4.2 FedEx Customer Information Services................................ ................................ .............. 13

3.0 IT TheFedEx Perspective................................ ................................ ................................ ......... 14

3.1 Introduction ................................ ................................ ................................ ........................... 14

3.2 History of Innovation................................ ................................ ................................ .............. 14

3.2.1 InnovativeSpaces................................ ................................ ................................ ............ 14

3.2.2 Virtual MachineDevice Queues................................ ................................ ....................... 18

3.2.3 ASTRA Bar Codes ................................ ................................ ................................ .......... 18

4.0FedEx Logos and Trademarks................................ ................................ ................................ ..... 19

5.0 Bibliography and Citations ................................ ................................ ................................ ......... 20


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ITFM Project Report FedEx

SDM IMD PGDM 2010-12 3

List of Figures and Tables

Figure1: Revenuecontribution ofsubsidiaries................................ ................................ ................... 5

Figure 2: Logos................................ ................................ ................................ ................................ . 19

Table1: IT Innovation ................................ ................................ ................................ ...................... 15


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1.0 FedEx CorporationHisto

The modern air/ground express industry was pioneered with the founding of Federal

Express in 1971; thecorporation wascreated in 1998 as FDX Corporation and becameFedEx

Corporation in January 2000.

HeadquartersFedEx World Headquarters. 3630 Hacks CrossDrive Winchester Road Memphis, TN, 38125

Principal Officers

y Frederick W. Smith-Chairman, President and CEOy Robert B. Carter -Executive Vice President,FedEx Information Services and CIOy T. Michael Glenn - Executive Vice President, Market Development and Corporate

Communications

y Alan B. Graf Jr.,-Executive Vice President and CFOy Christine P. Richards -Executive Vice President,General Counsel and SecretaryNY

E Listin

FDX (sinceDecember 1978)

FY10 Revenue (Consolidated Information for all FedEx Companies )$34.7 billion

WorkforceMore than 280,000 team members worldwide

Average Dail

Volu e More than 8 million shipments for express, ground, freight and expedited deliveryservices

Service AreaMore than 220countries and territories, including every address in the United States

Fedex.co

Over 20 million unique visitors monthly; more than 5.5 million package tracking requests

daily and 19 million packagesshipped via FedExShip Manager monthly

Operating Facilities

y Express:1,057 stations;10 air express hubs y Ground: 32 ground hubs; over 500 pickup/delivery terminals y Freight: Approximately 470servicecentresy Office: Nearly 2,000 locations

Air Operations664 aircraft; more than 375 airportsserved worldwide


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ITFM Project Report Fed

S

M IM

P!

M 2010-12 5

Ground"leet

More than 80#000 motorized vehicles for e

$press

#ground

#freight and e

$pedited delivery

service

Drop-offLo%

ations

y 705 Fed & ' World Service Centresy 1 ( 804 Fed ) 0 Office locationsy 6,917 Fed

1 2Authorized ShipCenters and Alliance Partners

y 43,748 Fed 3 4 5 rop Bo 4 es (including 4,963 U.S. Postal Service locations)

Market Share

Fed 6 7 is the clear market leader in e 7 press shipping, with 49% market share by volume in

the U.S. In ground shipping, it is only starting to establish itself in a market dominated by

competitor UPS. In its freight businesses too, Fed 6 7 is gaining market share but its long-term

success is uncertain. Fed6 7

is placing a big bet on the e7

panded international network it isnow developing.

Revenue8

ontribution ofsubsidiaries

igure 1: Revenue ontribution ofsubsidiaries

63%

20%

12%

5%

Fed9 @

9 @

press Fed9 @

A

round Fed9 @

Freight Fed9 @

Services


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2.0 Strategic Business Units

2.1 FedEx Express

2.1.1 F dEx Supply ChainSince its inception, FedEx has been raising the bar on what's possible. Today, the FedEx

global transportation and information network enables customizable solutions for

customers around the world. FedEx SupplyChain serves as an "orchestrator", bringing the

right elements together to turn supplychain managemen t into a competitivestrategy.

FedEx SupplyChain offers specialty services like FedEx Critical Inventory Logistics, FedEx

Fulfilment Services, FedEx Transportation Management, cold chain solutions, crossdocking

and dock services.

History:

Founded in 1989 as Roadway LogisticsSystem

Headquarters:

Memphis, Tenn.

Principal Officer:

Craig M. Simon, President and CEO

Service Area:

North America

Workforce:

More than 800employees and contractors

GroundFleet:

Approximately 400 motorized vehicles

Warehousing:

Approximately 40 warehouses with over 4 million square feet

Bore AboutFedEx SupplyChain:

FedExSupplyChain helpscustomers turn supplychain management into a competitive

strategy byenabling them to focus on corecompetencies, reducecosts and improve

customer service. Thecompanys portfolio ofspecialtyservices includes:

FedEx Critical Inventory Logistics Comprehensive, end-to-end solution designed to

optimize the management of critical inventory and service parts distribution and returns

process. It incorporates hub-based central stocking locations (CSLs) and a global network of

forwarding stocking locations (FSLs) integrated through extensive information capabilities.


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FulfilC

ent Services:

Services designed to leverage the advantages of multi-client,shared facilities, including 24/7

Global Distribution Centres with late-night access to FedExExpress World Hubs.

FedEx Transportation Management:

Optimized management of multi-carrier shipments for all modes of transportation.

FedEx Healthcare SharedNetD

ork:

Premium, time-definite, temperature-controlled deliveryservice to the pharmaceutical and

diagnostic product industries.


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2.1.2 F dEx Trad Netw rks

FedEx Trade Networks helps simplify international shipping for customers of all sizes by

providing flexible end -to-end services that include customs brokerage, global cargo

distribution and trade facilitation solutions. Customers can utilize FedEx Trade Networks

services as an entire package, or take advantage of individual services as needed.

History:

Founded in February 2000

Headquarters:

Memphis, Tenn.

Principal Officer:

Manfred Schardt, President and CEO

Service Area:

Worldwide, from more than 330 locations

Workforce:More than 3,300employees

More aboutFedEx Trade NetE

orks:

FedEx Trade NetF

orks Transport & Brokerage:

FedEx Trade Networks Transport & Brokerage is a leading provider of full -servicecustoms

brokerage, global ocean and air cargo distribution, North American transportation, and

other value-added services involved in shipping goods.

FedEx Trade NetG

orks Trade Services:

FedEx Trade Networks TradeServices provides Trade & Customs AdvisoryServices (TCAS)

and global duty and tax information from WorldTariffSM.


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2.2 FedEx Ground

2.2.1 FedEx SmartP st

In 2005, FedEx acquired FedEx SmartPost, a leading national small-parcel consolidator.

FedExSmartPost specializes in the delivery of low-weight, less time-sensitive business to-

consumer packages, using the U.S. Postal Service for final delivery to residences. FedExSmartPostscustomers includee-tailers and cataloguecompanies. Through its network of 25

distribution hubs FedEx SmartPost provides delivery Monday through Saturday to all

residential addresses in the U.S., including P.O. Boxes and APO/FPO m ilitary destinations.

History:

Founded in 1998 as Parcel Direct, was rebranded FedExSmartPost in 2004.

Headquarters:

New Berlin, Wis.

Principal Officer:

Ward B. Strang, President and CEO

Workforce:

More than 4,500employees

Average Daily Volume:

More than 1.1 million packages

Service Area:

Service throughout the United States and Puerto Rico, plus APO/FPO addresses

Operating Facilities:

25 Distribution Centres


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2.3 FedEx Freight

2.3.1 FedEx Cust m Critical

FedEx Custom Critical provides the fastest, door-to-door same-day and next-day delivery of

urgent freight, valuable items and hazardous goods. FedEx Custom Critical provides 24/7

service, utilizing itsservice fleet for ground -expedited service and providing an array of airoptions.

History:

Founded in 1947 as Roberts Cartage; became an expedited carrier, RobertsExpress, in 1980;

was rebranded FedEx Custom Critical in 2000.

Headquarters:

1475 Boettler Rd.

Uniontown, Ohio 44685

United States

Principal Officer:Virginia C. Albanese, President and CEO

Average Daily Volume:

Approximately 700shipments

Service Area:

Service throughout the United States and internationally

Service Hours:

24/7 availability (nights, weekends and holidays at no extra charge)

Workforce:

More than 1,300 team members

GroundFleet:

Exclusive use of more than 1,300 vehicles in fivesizes

Air Fleet:

Access to virtuallyevery on-demand aircraft in North America

More aboutFedEx Custom Critical:

FedEx Custom Critical:NorthAmerica

FedEx Custom Critical providesexclusive-use, door-to-door transportation service

throughout the U.S., Canada and Mexico 24 hours a day, 365 days a year for same-day

shipping or overnight delivery ofcritical freight. Whe n customers need it now,FedEx

Custom Critical delivers whether it's parts to keep a vital production line running,

emergency generators to restore power after a storm, or a priceless piece of art that needs

special handling.

FedEx Custom Critical: International

FedEx Custom Critical Air Expedite offers an array ofsolutions for international shipments,

including exclusive-usecharters and time-specific airfreight services. With Temp-Assure Air


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and Temp-Assure Validated Air services,sensitiveshipments are transported in

temperature-controlled cargo containers.

FedEx Custom CriticalPassportAuto Transport :

A subsidiary ofFedEx Custom Critical, Passport Auto Transport provides door-to-door

vehicle transportthroughout the United States. Thecompanys custom-designed, fullyenclosed air-ride trailers provide maximum protection primarily for vehicles of high value

from vintage fireengines to custom coachwork classics,exotics, racecars and hot rods.


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2.4 FedEx Services

2.4.1 FedEx Office

FedEx Office (formerly FedEx Kinko's) provides access points to printing and shipping

expertise with reliableservice when and whereyou need it. TheDallas -based company has

a network of more than 1,900 digitally-connected locations. FedEx Office services includecopying and digital printing, professional finishing, document creation, direct mail,signs and

graphics, Internet access, computer rental,FedExExpress and FedEx Ground shipping, and

more. In addition, the company offers FedEx OfficeSM

Print Online, an online printing

solution for business and personal printing, at home, at the office or on the go. Products,

services and hours vary by location.

History:

Founded in 1970 in Santa Barbara, Calif.

Headquarters:

13155 Noel Road,Suite1600Dallas, TX 75240 Principal Officer:

Brian Philips, President and CEO

Workforce

Approximately19,000employees worldwide

Service Area:

Centres in eight countries

Operating Facilities:

Nearly 2,000

More aboutFedEx Office:

FedEx Office: United States

FedEx Officecentres in the United States provide a one-stop shop for small businesses, with

servicessuch as direct mail,signs and graphics production, and office products. These retail

outlets also provide an "office on the road" for travelling business professionals and remote

workers, who often need high -speed Internet access, videoconferencing, presentation

support and other businessservices. More than 200 locatio ns operate 24 hours a day .

FedEx Office: International

FedEx Officecentres located outside the United States offer a full range of businesssupport

services. Thecompany has locations in Canada, China, Japan,South Korea, Kuwait, Lebanon,and the United Arab Emirates. In addition to document and shipping services,FedEx Office

providescorporatesolutions for large, multi-national companies.


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2.4.2 FedEx Cust merInformation Services

FedEx Customer Information Services is a subsidiary of FedEx Corporate Services, Inc. Its

mission is to align customer contact centres, worldwide revenue operations, claims, trace

and packageengineering within FedExs professional servicescompany.

History:

Founded in 2006

Headquarters:

942 South ShadyGrove Road

Memphis, TN 38120

United States

Principal Officer:

Cary C. Pappas, President

Workforce:

More than 4,500 employees


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3.0 IT The FedEx Perspective

3.1 IntroductionFedEx was built upon innovation and it continues to be an integral part of theFedExculture

and business strategy. Our commitment to innovation propels the development of ideas,products and services that empower our customers to grow their businesses around the

world.

FedEx created a new and distinct market over thirty years ago when it began providing

customers access to next dayjust-in-time deliveryservice. Since its inception,Frederick W.

Smiths vision for thecompany has always had a focus on innovation.

In 1978,Fred Smith was famously quoted assaying, The information about the package is

just as important as the package itself. Today,FedEx providescustomers access to almost

real-time information which has enabled new supply chain models and efficiencies. This

unprecedented access to information is connecting customers around the world toeconomic markets and communities.

Innovation is a part of the DNA at FedEx. Whether it is through web services, alternative

energy practices or the development of high-technology, FedEx sees innovation as a

strategic business practice that iscontinuouslyenhanced, developed and encouraged.

3.2 History of Innovation

FedEx has a rich history of innovation that is built on a series of firsts including:

y Installing computers in delivery vehicles, providing sophisticated automation forcorporate mailing services and developing tracking capabilities and software.

y In 1994, we were the first to offer package-status tracking for improved customerservice via fedex.com.

y Offering shipping for improved customer service and convenience via fedex.comy Pioneering the use of wireless technology for shipping over 25 years ago with the

introduction of theDigital Assisted Dispatch System (DADS).

3.2.1 Innovative Spaces

3.2.1.1FedEx Innovation Labs

Continuing theFedExcommitment to the pursuit and development of new technologies to

provide innovative solutions and services for customers, FedEx developed the FedEx

Innovation Labs, an information technology project designed to create an atmosphere of

collaborative thinking around critical technologies such as advanced optics for scanning,

robotics, pervasivecomputing,social networking and more.

TheFedEx Innovation Labs house a research and development team tasked with looking at

future technologies that have a three-to-fiveyear production roadmap.


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FedEx Innovation Labs are a supplement to the ongoing R&D efforts at FedEx. Located in

downtown Memphis along the Mississippi Riveraway from thecorporate headquarters

the Labs share office space in a renovated 1900s furniture warehouse with a local

technologyentrepreneurial incubator,EmergeMemphis.

Table 1: IT Innovation


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3.2.1.2 COSMOS

The hub-and-spoke system requires a sophisticated transportation logistics information

system. One ofFred Smith's key tenets is that information about a shipment is as valuable

as the contents of the shipment. In 1979, FedEx introduced COSMOS - the Customer,

Operations. Service Master On-line System - the first centralized computer system in the

industry used to keep track of all packages handled by thecompany. Thissystem not onlygave FedEx employees the ability to obtain real-time information on the exact status and

location of a shipment, but also made the information available to customers who phoned

theFedEx toll-free number.

In a central database located at the Memphis headquarters, COSMOS"' maintains data 011

package movement, pickup, invoicing, and delivery. A barcode is attached to each parcel at

the point of pickup, and scanned up to 20 times (for international shipments) en route, at

each stage of the collection and delivery cycle. The COSMOS"' system handled 63 million

transactions per day in 1999.

3.2.1.3 DADS

The Digital Assisted Dispatch System was put into place in 1980. Under thissystem,small

terminals were installed in vehicles for the purpose of transmitting digital information on

orders, thus guiding couriers to their next pickup.

3.2.1. 4 FedEx PoH

erShip

FedEx determined that providing COSMOS- generated information to customers- to allow

them to "order" shipping by instantly transmitting the information to relevant couriers,

accounting personnel, and hub personnel - would greatlyenhanceefficiency and customer

service. In 1984, the company pioneered its PC -based automated shipping system, later

named FedEx PowerShip, giving a stand-alone PC terminal free of charge to its high-

volumecustomers. Powership used telephone lines to link customers with the COSMOS

system, permitting customers to place their own shipping orders electronically and print

airbills. The system provided users with real-time tracking and a long list of reporting

functions. Userscould complete an entirely automated business transaction with electronic

data. FedEx PowerShip. Today a component of FedEx Ship Manager, was one of the

earliest "e-commerce" tools, well before the term e-commerce waseven contemplated.

3.2.1.5 fedex.com

Also in 1994, FedEx launched its website. It contained the usual information about the

company and its services; however, the site captured the instant attention of the

technology industry because it offered something that few sites had in thoseearlyyears of

the Internet - real functionality. The site provided real-time, on-line tracking information

provided by the COSMOS system. Shortly thereafter, FedEx InterNetShip was

implemented, allowing users to complete and print shipping labels over the Internet. Thesystem has been expanded to include other services, such as allowing customers to

maintain an address book of frequently used "ship to" addresses, retaining shipp er

information such as account numbers, and giving users access to reports concerning their

shipping histories.

According to Business Weekmagazine, the website was pivotal: "In the brief annals of doing

business on the Internet, Federal Express Corp.'s customer Website has become a

legendarysuccessstory."


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3.2.1.6FedEx SuperTracker

In 1986. FedEx introduced SuperTracker, a hand -held bar-code scanner system that

captures detailed package information. Couriers and package sorters had their own bar-

code scanners - the world's first use of bar-code technology to track package status in

transit electronically - turning FedEx workers into distribution processors and information

gatherers. This innovative system has since become synonymous with logistics andinventorycontrol throughout the world.

3.2.1.7FedEx Ship

In 1994, FedEx introduced FedEx Ship, a new software that brought the power of FedEx

PowerShip to "front office" personnel using desktop computers. This package allowed

users to dial directly into COSMOS to ship, print airbills, track, and report efficiently. This

reduced overhead costs and improved market service. More importantly, it prepared FedEx

for the Internet and World Wide Web boom of theearly1990s.

3.2.1.8FedEx Insight

It's a Web-based application that enablesyou to view thestatus ofyour inbound, outbound

and third-party shipments without a tracking number. All you need is your FedEx account

number and/or company name and address. You can see information about the status of

your shipmentsso you can moreeffectively.

3.2.1.9FedEx Global Trade Manager

International shippers know how timeconsuming and sometimescomplex the preparation

ofcustoms documentation can be. FedExGlobal Trade Manager, an Internet-based tool,can

help prevent costly mistakes by simplifying this process. FedEx Global Trade Manager is a

comprehensive and interactive resource that identifies the documents needed to ship to

and from specific countries. The simple, wizard-based tool automates the documentation

and regulatory compliance required to ship approximately 90% of all commodities

internationally via air express transportation. FedEx Global Trade Manager providescustomers of any size with a one-stop resource for international shipping documentation

and trade information. FedEx Global Trade Manager has become an invaluable online tool

for international shippers who need a single, up -to-date access point for streamlining their

international shipping processes.

3.2.1.10FedEx Claims Online

You can file a claim by mail or fax, or save time bysubmitting it online. When you file online,

you can request to receive periodice-mail updates on thestatus ofyour claim. FedEx uses

information from your shipping record to pre -populate portions of your claim form. (The

online option iscurrently available for FedExExpress and FedExGround USshipments only,

excluding FedExGround C.O.D. claims)

3.2.1.11FedEx E-Commerce Builder

FedEx E-Commerce Builder, a full-service Internet platform designed to make it easy for

small and medium-sized businesses to build and manage an online store. The innovative

tool is available at www.fedex.com and contains theentirecore online business processes,

including order entry, order processing, billing and product shipment using pre-integrated

FedExExpressshipping capabilities.


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3.2.2 Virtual Machine Device Queues

Challenge:

FedEx wanted to reduce network complexity and speed up infrastructure deployment using

10 Gigabit Ethernet (10GbE) instead of 1 Gigabit Ethernet (1GbE) to support demanding

data replication and distribution requirements at a new data centre. FedEx deployed aMware ESX hypervisor solution as its virtualization solution of choice, but after initial

testing were looking to improve network performance on their new 10 GBE links. FedEx

undertook a proof-of-concept (PoC) study with Intel to determine how to improve 10GbE

network throughput to near line rate.

Solution:

Virtual MachineDevice Queues (VMDq, a component of Intel Virtualization Technology

for Connectivity), together with VMware NetQueue, helped FedEx better utilize10GbE

bandwidth, allowing it to meet its requirements while managing costs in its new data

centre.

Using 10GbE to consolidate multipleEthernet connections reduces the number of adapters and cables in thesolution while improving power management and overall complexity.

Infrastructure Components:

IntelXeon processor 5500series

Intel10Gigabit AFDA Dual Port Server Adapter with VMDq

VMwareESX 4.0, part of the VMware vSphere product family

Red Hat Enterprise Linux 5.3 64-bit

3.2.3 ASTRA Bar Codes

ASTRA can be used on its own or integrated with other sections to produce individual high

quality Barcode Labels on various types of printers. The Barcode Labelscan besaved to disk

or copied to theclipboard and scrapbook as PICT files for use in other applicationssuch as

drawing packages, word processing and DTP.

Barcode Labels can also contain text and pictures pasted from other applications, eg the

company logo, a picture of the product,etc.

When integrated with the Stock, Purchases, Purchase Order Processing, Sales and Product

Tracking sections, batches of labels may be produced automatically.


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4.0 FedEx Logos and Trademarks

Figure 2: Logos


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5.0 Bibliography and Citations

http://en.wikipedia.org/wiki/Fedex http://about.fedex.designcdt.com/our_company/company_information/fedex_freig

ht http://about.fedex.designcdt.com/our_company/company_information/fedex_servi

ces

http://about.fedex.designcdt.com/our_company/company_information/fedex_ground

http://about.fedex.designcdt.com/our_company/company_information/fedex_express/fedex_supplychain

http://about.fedex.designcdt.com/our_company/company_information/fedex_express/fedex_tradenetworks

http://about.fedex.designcdt.com/our_company/company_information/fedex_express

http://about.fedex.designcdt.com/our_company/company_information/fedex_services/customer_info_services

http://about.fedex.designcdt.com/our_company/company_information/fedex_freight/fedex_customcritical

http://about.fedex.designcdt.com/our_company/company_information/fedex_corporation

http://www.fedex.com/us/about/today/companies/corporation/facts.html http://about.fedex.designcdt.com/our_company/fedex_innovation

itfm report - fedex - section b

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