Running head: TECHNOLOGICAL DEVELOPMENTS IN THE PACKAGE DELIVERY INDUSTRY
Technological Developments in the Package Delivery Industry
University of Phoenix
MBA 501
December 5, 2005
Technological Developments "Moving eight miles a minute for most of the time", while these are lyrics to a song by Bob Seger, these words could describe a package 's experience being shipped by one of today 's leading package delivery companies. How these companies have used technology to improve their services and how they may expand the use of technology to increase productivity and reduce costs is the focus of this paper.
Package Delivery Industry Best Practices
Learning Team A identified two package delivery companies to be studied for current
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While not every web tracking request would have resulted in a customer service call, the call volume and associated costs have been decreased by 80% (Hayter, 2002).
FedEx
The second package delivery company identified is FedEx. This company originated in 1971 as Federal Express Corp., a small delivery firm with a fleet of 14 small aircraft located in Memphis, Tennessee. This company quickly grew and in 1994 adopted "FedEx" as its primary brand. "Originally called FDX Corp., FedEx Corp. was formed in January 1998 with the acquisition of Caliber System Inc." (FedEx, 2005). From the first day a customer used overnight delivery, FedEx has been at the leading-edge of change.
"We 've pioneered packaging and systems technologies and trade routes. We 've enabled new ways of working and new business models. We 've closed the gap between virtual and physical worlds. All for one reason to give people access to the goods, information and markets that make their growing expectations possible" (FedEx).
This type of innovation has made FedEx a leader in the package delivery industry. One of the best practices used by FedEx is the use of electronic tools. The company offers a wide range of electronic tools, online interfaces, and applications that a customer can use to make shipping packages easier. By integrating these tools, customers reduce inventory costs and
In this report we focus on the two main competitors in the package delivery industry: Federal Express Corporation (FedEx) and United Parcel Service of America, Inc.
By capitalizing on this strategy, FedEx was able to boost its average delivery volume in 1976 to 20,726 packages per day via its three services, Priority-One, Standard Air, and Courier Pack, compared with an average of 10,521 delivered daily the prior year. Clearly the company’s calculated use of strategically-located hubs, nighttime flight routes, and limited package size allowed the company to carve out a niche by reliably delivering packages on an immediate, overnight basis.
FedEx was first established in 1973 as a logistic company with the name Federal Express that be created by founder and first CEO Frederick W Smith. The Headquarters is in Memphis, Tennessee in the US. The company became well known for its fast and reliable delivery service around the world. On its first night of operation FedEx delivered 186 bundles to 25 urban locations in the US with only 389 employees and a 15 Dassault Falcon aircraft. In 1980 FedEx purchased a system for live updates on the packages. In this system, FedEx drivers share the current locations from the trucks to provide updates of the packages to the customers. This information was sent to a central computer of FedEx then the company improved the update system by introducing FedEx.com webpage. This webpage allowed the tracking data to be easily accessible. However, recently, FedEx uses Savvy bundle for packing and tracking the products across couriers. (Baldwin, 2016)
Founded by Frederick W. Smith, FedEx Express was established in 1973 and it has grown rapidly. Smith had the idea of creating a company that would deliver mail all over the United States over night. His idea was to fly mail from one location to another at night because the traffic is better and packages could be sorted, distributed and out of its original location faster.
In today’s environment, it is extremely essential for retailers to embrace technology in the course of their businesses. This is mainly because a significant number of consumers can be attracted and accessed through technological measures. It is essential to appreciate the fact that data, infrastructure and e-commerce software form the basis of United Parcel Service’s technological superiority. All these tools play a pivotal role in supporting the company’s e-commerce strategy and the company’s business strategy as a whole. One of the key attributes of United Parcel Service is its commitment to investing in researching emerging technologies. This gives it an exceptionally competitive advantage. United Parcel Service (UPS) consistently seeks to embrace technologies that that enhance the company’s efficiency (Russell Baker, 2008). The company’s commitment to technological advancement made the company appear in InternetWeek’s top 100 companies in 2004 (Russell Baker, 2008). On the other hand, InfoWorld ranked the company as the seventh company with the most significant contribution to technological infrastructure.
Without a doubt, FedEx has grown thru a series of good management decisions, key acquisitions and some very beneficial strikes and bankruptcies. It has been well established that Federal Express’s first actual day of operations was April 17, 1973, but many do not recognize how several key missteps of competition aided in the rapid development of the newly established company (“History – About FedEx”, n.d.).
Federal Express (FedEx) Corporation was founded by Frederick W. Smith in 1971 when he was just 28 years old and it specializes in overnight delivery of heavy freight, high-priority documents and packages. It has operations in 211 countries and it operates all over the United States providing delivery of time-sensitive, valuable cargo worldwide. Its main headquarters are in Memphis Tennessee USA and its subsidiaries include FedEx Express, FedEx Office, FedEx Trade Networks, FedEx Ground, FedEx Custom Critical, FedEx Freight, FedEx Supply Chain and FedEx Services. The FedEx Express subsidiary is the number 1 express transportation provider in the world with the FedEx ground complementing the express delivery business for small
The innovative technology is one of the reasons for FedEx Corporation’s success. FedEx Corporation established the first website with a tracking application which enables the customers to search and find information so that they can quickly order the pick-up service on the Internet at anytime and anywhere. (Farhoomand & Ng & Conley, 2003 Another innovation technology is its wireless solutions which offer a unique barcode for customers to track their package from dispatch to destination at anytime and anywhere (About FedEx Wireless Solutions). In addition, FedEx Corporation has cooperated with the University of Memphis, establishing their technology department which can help them own the latest and advanced technologies, invented for the future.
FedEx is a service business which provide postal service using trucks and airplane inclusive. Company operates in 220 countries. It started its service in China and India, two emerging markets, in 1990s.
FedEx a courier company head quartered in Memphis, Tennessee United States. The company was founded in 1970’s for overnight shipping purpose. The company is primarily associated with document shipping and express packs. Basically it is the American association but is expanding otherwise as well.
FedEx Express is known as the worlds largest express transportation company. Providing the service of fast delivery to all addresses with in the United States. They are now also serving over 220 other countries worldwide. They use what they call a
FedEx’s product mix breadth consists of FedEx Service, Express, Ground, and Freight. FedEx Services “provides sales, marketing, information technology, communications, customer service, technical support, billing and collection services for U.S customers” (Investors.Fedex. 2017) which its main target is businesses and companies by providing a product line depth of print and copy services along with shipping, pickup, delivery and same day delivery services. This benefits corporations and small businesses because it provides a service that makes communication and the exchange of information a lot more efficient. The copy and print is a big advantage, because companies and or individuals can now replicate or reproduce certain documents and information that is need if they do not have the ability to reproduce such information.
FedEx Corporation (FedEx), incorporated on October 2, 1997, provides a portfolio of transportation, e-commerce and business services through companies that compete collectively, operate independently and manage collaboratively, under the respected FedEx brand. These companies are included in four business segments: FedEx Express, Federal Express Corporation (FedEx Express), is an express transportation company, offering time-certain delivery within 1 to 3 business days and serving markets that comprise more than 90% of the world’s gross domestic product; FedEx Ground, FedEx Ground Package System, Inc. (FedEx Ground), is a provider of small-package ground delivery service; FedEx Freight, FedEx Freight Corporation, is a
The FedEx Corporation, conceived as Federal Express, is an American-based worldwide courier delivery Service Company. It provides strategic and logistical support for a variety of operating divisions, currently known as FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. These companies operate independently, compete collectively and manage collaboratively (Amsler et al., 2010). For the purpose of this report, focus will be on FedEx Express operations. The company is currently the global leader in the express delivery market, and offers delivery to and from individuals and businesses in over 220 countries and territories (FedEx, 2016a).
FedEx was established on June 18, 1971, founded by Fredrick W. Smith, in Little Rock, AR. FedEx is a well known American corporation that brings courier global delivery service to its customers. Having such a wide range of portfolios, FedEx has been able to incorporate many different delivery systems for maximum customer satisfactory, with the help of e-commerce, and global delivery service it is no surprise that FedEx has consecutively been ranked amongst the most admired and trusted employers.