This presentation talks about how FedEx manages its supply chain and how it has expanded its services in all-cargo air carrier, road transportation and ocean freight. Hub and Spoke Methodology followed by FedEx. 3PL (3rd Party Logistics) and its Quality Driven Management (QDM)

1. SUBMITTED BY:
GROUP 4
PAVAN ABBURI-17PGPIM06
HIMANI MALIK-17PGPIM11
MRIGANK SINGHAL-17PGPIM18
SUNNY DHAMIJA-17PGPIM31
SUMEET PANDEY-17PGPIM38
VINEET RUHIL-17PGPIM44

2. ABOUT FEDEX
• Started in 1971, to facilitate overnight delivery of
documents through airfreight system
• FedEx differentiated itself with technologically
advanced state of the art infrastructure and logistics
algorithms
• Offers variety of services, which includes warehouse
management, inventory management, logistics
management, transportation etc.
• 750 worldwide delivery centres, 38500 drop box
locations, 10 express Air hubs, 375 aircrafts, 47500
motorized vehicles
• Serves more than 200 countries and deliver more than
3.6m shipments each day
• Central Hub and Headquarters: Memphis, Tennessee
(Weather and Airport Cooperation)

3. THE HUB AND SPOKE METHOD
• ISSUE: Airfreight shippers using
passenger route systems for
delivery-A highly ineffective
methodology
• BIG IDEA: A delivery system
similar to bank clearing
mechanism- A hub and spoke
design
• AMALGAMATION: Combined
Airplanes and trucks into
delivery system
HUB
CITY
4
CITY
3
CITY
1
CITY
2
PICKUP
DELIVERY
DELIVERY
PICKUP
PICKUP
DELIVERY
PICKUP
DELIVERY

4. GROWTH AND EXPANPSION
• Lobbied for air cargo deregulation- Helping
them use larger cargo carrier (largest all-cargo
fleet)
• Delivering quality customer service
• Introduction to internet complemented the
highly technologically driven service model
• 1995-Online shipment tracking: One on one
customer service
• Huge cost savings per query tracking- Reduced
call centres queries, improved online support

5. MARKET DRIVEN APPROACH-
3PL
• Launched Strategic logistic consulting to help SMEs as
well as large businesses
• 2000- FedEx home services: To cater e-commerce door
to door service
• Virtual Order- A platform to set up online catalogue on
secured server
• FedEx insight- To help large customers help plan their
manufacturing, inventory management, improve cost
benefits and increase customer satisfaction
• Deals with Orbit Commerce and AT&T to serve
customers better and quicker

6. DESIGN
INNOVATION
• ISSUE FACED: Internet brings digitally enabled
document transmission- Public policy and copyright
issues
• COSMOS: Customer Operations Service Master Online
System- To track packages
• GOCC: Global Operations Control Centre- Provided
real time global tracking and weather information
• DADS: Digital Assisted Dispatch Systems- Delivery and
Pickup agents about locations
• ASTRA: Automated Sorting Tracking Route Aid-
Accurate information to sort and Dispatch Assets to
destination
• Invested funds in:
• Wireless Solutions- Bluetooth
• Digital pen
• RFID
• Velcro Wristband RFID

7. QUALITY
DRIVEN
MANAGEMENT
(QDM)
• Draws the best ideas from quality philosophies: Six Sigma, lean
and total quality management- Focused on customers
• The key aspects of QDM includes:
• regular training and skills reinforcement programmes to
ensure the effective use of quality tools at all levels of our
company
• the use of statistical software tools to allow the accurate
analysis and use of data relating to quality issues
• the regular weekly provision of resources to Managers to
assist them and their teams in the effective use of QDM to
improve quality every day
• the active pursuit of systems and practices enabling team
members to fully understand customer needs and enable
them to develop effective quality solutions

8. MARKETING
DRIVEN
APPROACH-
SANDWICH
STRATEGY

9. RECOMMENDATION
• Upward Strategic Movement:
• FedEx is leader in shipping,
logistics, warehousing and
inventory management related
services
• FedEx has established strong
SCM processes, huge IT division
and excellent state of the art
infrastructure to serve
customers globally
• Thus, it can now move up in
SCM services and provide 4PL
(4th party logistics) to the
customers

10. REFERENCES
• https://www.slideshare.net/arunmaithani/fedex-supply-chain-
management-51994050
• https://www.slideshare.net/AmitKumar364/scm-fedex
• https://prezi.com/2fkrq4pxk1sm/fedex-supply-chain-presentation/
• https://www.scribd.com/presentation/21712517/Supply-Chain-of-
FedEx
• https://supplychain.fedex.com/
• http://www.fedex.com/
• http://customcritical.fedex.com/
• http://www.fedex.com/fr_english/shipping-services/industry-
solutions/supplychain/enews/2015/summer/article3.html
• http://www.fedex.com/fr_english/shipping-services/industry-
solutions/supplychain/enews/2015/summer/article3.html
• http://images.fedex.com/downloads/downloadcenter/supply-
chain/FedEx-SupplyChain-Customer-Success-Story_Fulfillment.pdf

11. THANK YOU