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Fedex Enterprise System Problem or Limitation

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Submitted By mahfuza
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FedEx is a logistical service company employing 100 000 employees all around the world. They are specialised in transportation, e-commerce and business services. In order to be successful in their job they came up with a really efficient information system. But there is also some problems what should be improved for their better perpous. Here are the recommendations for
Fedex enterprise systems-

1. First of all, FedEx receives on the Internet complaints and criticisms about the last part of its shipping process: the delivery by hand. In December 2011, a video has created a buzz on the internet: it was showing a FedEx employee throwing a computer monitoring over a gate because nobody answered. Other customers are complaining about packaging left in unsecure places where it could have been stolen or next to a dog. Lastly some people have never received their order. This raises the question of the reliability and trust into the shipping, to the employees and FedEx itself this is far more important as the competition becomes very harsh: DHL, Chronopost EPS, UPS are rivals.

2. One of the solutions may be to work on the confidence between FedEx and its customers, and reinforce loyalty. The receiver should be aware of the future arrival of the package (date, time) and could leave another address just next to the real one where it could be left (at a neighbor’s, a close shop).

3. Another solution could be an incentive for employees according to the number of complaints they received, so that they would pay more attention to the place where they leave the box. 4.

4. Else, the FedEx employee who picks up the package could put directly a label on it, indicating directly the destination of the package, so that they know how many packages are going to each destination every day. With that system, FedEx would avoid losing packages and sending packages to the wrong destination

5. In the storing process, there is one loss of time in sorting package whose labels could not be read by the scan because the label was an unreadable face. So they pay employees to sort those packaging by hand which is costly and time-consuming. Different solutions could do away with this problem. First the label could be printed on every face of the box, thus no matter how the package is one the belt, one label would be detected, avoiding any human work at the beginning of the chain to replace the packages.

6. Another solution, the scanner could read through the package like x-rays, so even if the face containing the label was hidden it would be detected.

7. Last solution, the belt could be transparent, and then the scan could also be placed under the belt so no package would be forgotten. In order to avoid breaking fragile packages, customers or FedEx’s employees themselves should grade the package, defining how fragile is the package. So that FedEx's machines notice that the package needs care, it could be removed from the violent and rapid belt and transferred to a slower belt. Moreover the scanning could be more precise concerning the destination of the package. We believe it could be cost saving to use train for medium distance shipping. Furthermore improving the shipping could also be made by the place where are located the storing places, there is a strategy for the place of the hub.

8. Creating only one hub for Europe, Middle East and Africa seems unrealistic. Plus emergent countries were leaving aside (China, India, Brazil…), whereas it is one of the biggest challenges to improve shipping. They may play a big role, and should been taken into account, hubs and storing set at the right places could decrease shipping cost, and reduce shipping time. If FedEx misses the turn on emerging countries it could be on a downturn dynamic. Figures speak for themselves: the growth rate in France is 1.5% for 2011 when it is 11.2% in China.

9. In a period of economic crisis, where customers are always looking for more at the cheapest price, FedEx must be compared to its rivals in the market it manages the more which is the US. In fact, the US Post charges for an overnight delivery a flat fee around the US, whereas FedEx and its direct competitor UPS charge for the same package, according to weight and distance. So FedEx should find a way to charge its customers in a different and cheaper way. They should try to be more competitive in price. But it should still be profitable enough to invest in research and development, in order to keep its number one ranking in efficiency through state of the art facilities and information systems.

Conclusion :

Fedex has a good enterprise system. In order to be successful in their job they came up with a really efficient information system. Fedex Enterprise has a lot of honest and loyal employees who works hardly day and night for the enterprise.Fedex enterprise system is a better enterprise system and provide good service to the people if we consider some exceptional things or mistakes. The mistakes should also be solved by the company because Fedex is a big name for their loyal customer. They want better service from the enterprise day by day. There are also a lot of competitor of Fedex. This is another big threat of
Fedex. If the enterprise want to compete to their competitor they have to serve their customer in a better way. They have to give their customer a better wow experience.And that should be the next objective foe Fedex enterprise system.

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