Management Information System

1. FedEx Corporation
Management Information System
Prepared by:
AABHAS RASTOGI
11DCP053
SECTION - B

2. Table of Contents
ORGANIZATIONAL OVERVIEW ......................................................................................... 1
FEDEX E-COMMERCE SOLUTION .................................................................................................. 6
BASIC E-COMMERCE PROCESS ....................................................................................................... 9
TECHNOLOGIES AND FEATURES ................................................................................................ 10
IMPORTANCE TO ENTERPRISE ................................................................................................. 13

3. ORGANIZATIONAL OVERVIEW
FedEx Corporation was founded in 1973 by entrepreneur Fred Smith. Today, with a fully
integrated physical and virtual infrastructure, FedEx‘s business model supports 24–48
hour delivery to anywhere in the world. FedEx operates one of the world‘s busiest data-
processing centres, handling over 100 million in-formation requests per day from more
than 3,000 databases and more than500,000 archive files. It operates one of the largest
real-time, online client/server networks in the world. The core competencies of FedEx
are now in express transportation and in e-solutions.
FedEx Corporation
To understand the corporate level strategy of FedEx it is necessary to first know what
industries they currently compete in, as well as where they stand within those industries.
Currently FedEx is made up of six independent business units: FedEx Express, FedEx
Ground, FedEx Freight, FedEx Custom Critical, FedEx Trade Networks, and FedEx Services,
each compete in different sectors of the transportation industry in order to tailor the entire
FedEx service to best fit each customers‘ needs. Its parent company is the FedEx
Corporation, which offers all of the strategic leadership, as well as the financial
accountability for all of the business units. The business model that is followed at FedEx
Corporation is ―Operate independently, compete collectively.‖ Figure 1 lays out the decision
making tree at FedEx Corporation.
FEDEX ORGANIZATIONAL CHART
Fred Smith, CEO, Chairman
T. Michael Alan B. Graf, CFO Robert Carter, Kenneth Masterson,
Glenn, VP Chief
Corporate Information General Counsel
Communications
Officer Secretary

4. The board of Directors sits in conjunction with the vice presidents and is responsible for an
array of activities such as auditing, executive compensation, information technology
oversight, and governance. Although FedEx Corporation is a the parent company of the six
independent business units, FedEx Corporation offers strategic leadership at a corporate level
and the operate on their own and are therefore solely responsible for their decisions and
ultimate success. The top two performing companies, as well as the most widely known
FedEx companies are FedEx Express and FedEx Ground.
FEDEX EXPRESS
The first of the six independent units is FedEx Express. The president and CEO, David J.
Bronczek heads this unit. FedEx Express is the world‘s largest express transportation firm. It
has three subsections of U.S., International, and Freight. Offering guaranteed service to 120
different countries for packages from 1- 2,200 lbs. FedEx Express accounts for over one-half
of FedEx‘s revenue.
FEDEX GROUND
FedEx Ground is the next business unit, headed up by Daniel J. Sullivan, president and CEO.
FedEx Ground guarantees delivery to every business address in the U.S., Canada, and Puerto
Rico. It currently accounts for a little over $3 billion in revenue.
FEDEX NEW OFFERINGS
FedEx is a very large company that occupies a large portion of market share in the
express delivery sector as well as the ground sector.We have concluded that FedEx
does not so much possess distinctive competencies, as it has strong existing
competencies that allow it to compete competitively with industry leader UPS.
These competencies include a very timely customer response time, cutting-edge
technology and innovation.
Its most recent endeavour, characterized as a diversification from its ―usual‖ product
offering of actual shipment of good‘s, is the newer service offering of consultation.
Labelled FedEx Trade Networks, this newest division of the FedEx offerings
showcases the company‘s vast competence of international shipping knowledge to an
array of customers.

5. These customers are provided value creation with the knowledge that can greatly
increase efficiencies through the supply chain. FedEx Trade Networks offers a full
range of international support services, including customs clearance, freight
forwarding, Trade & Customs Advisory Services (TCAS) and trade technology
solutions.
THE PROBLEM/OPPORTUNITY
Initially, FedEx grew out of pressures from mounting inflation and global competition. These
pressures gave rise to greater demands on businesses to expedite deliveries at a low cost and
to improve customer services. FedEx didn‘t have a business problem per se but, rather, has
endeavoured to stay ahead of the com-petition by looking ahead at every stage for
opportunities to meet customers ‗needs for fast, reliable, and affordable overnight deliveries.
Lately, the Internet has provided an inexpensive and accessible platform upon which FedEx
has seen further opportunities to expand its business scope, both geographically and in terms
of service offerings. FedEx is attempting to fulfill two of its major goals simultaneously: 100
percent customer service and 0 percent downtime.
THE IT SOLUTION
A prime software application used by FedEx is e-Shipping Tools, a Web-based shipping
application that allows customers to check the status of shipments through the company‘s
Web page. FedEx is also providing integrated solutions to address the entire selling and
supply chain needs of its customers. Its e-Commerce Solutionsprovide a full suite of services
that allow businesses to integrate FedEx‘s transportation and information systems seamlessly
into their own operations. These solutions have taken FedEx well beyond a shipping
company. FedEx markets several e-commerce hardware/software solutions:
FedExPowerShipMC (a multicarrier hardware/software system), FedEx Ship Manager Server
(a hardware/software system providing high-speed transactions and superior reliability,
allowing an average of eight transactions per second), FedExShipAPI (an Internet-based
application that allows customization, eliminating redundant programming), and FedEx Net-
Return(a Web-based item-return management system). This infrastructure is now known as
FedEx Direct Link. It enables business-to-business electronic commerce through
combinations of global virtual private network (VPN) connectivity, Internet connectivity,
leased-line connectivity, and VAN (value-added network) connectivity. Below provides an
example of one of FedEx‘s e-commerce solutions. It shows how FedEx customers can tap
into a network of systems through the Internet. When a customer places an online order, the
order is sent to a FedExWeb server. Information about the order and the customer is then sent
to the merchant‘s PC, and a message is sent to the customer to confirm receipt of the order.
After the order is received and acknowledged, the FedEx Web server sends

6. FEDEX E-COMMERCE SOLUTION
COMPONENTS OF THE E-COMMERCE SOLUTION
According to me some information systems/processes involved
Order Management System
Inventory Management System
Supply Chain Management system
Warehouse Management
Payment ProcessingSystem (from client)
Payroll Management System (for internal employees and vendors)
Reporting Systems for sales (area wise/product wise)
A Customer Relationship Management on the client side
Every customer‘s order will be managed and details will be logged and maintainedAndan
individual order will act as mini system in itself.

7. RFID TECHNOLOGY IN CARGO AND SHIPMENT TRACKING
Radio frequency identification devices (RFID) are low-cost tags that assist in the tracking of
goods and vehicles. These devices are placed on individual items and can either be active,
i.e., constantly emitting a radio frequency signal; or passive, i.e., only emitting a signal when
queried by an outside source.
In order to track goods, readers (either hand-held or fixed) need to be installed to track and
record the numbers from the RFID devices affixed to each product or container. Installation
of these readers, however, adds addit ional costs which would be assumed by the shipper or
passed along to the consumer/end user.
RFID tags are limited in the number that can be screened by each reader at one time. For
large numbers of loose goods, individually tagging each good is not an efficient use of
resources. Tagging the unit containing these loose goods is a more practical solution. RFID
tags may not be practical for all applications, including tracking liquids and items wrapped in
metal or foil, as these environments can create interference.
The RFID tags only serve as a tracking Cargo and vehicle tracking is the ability to trace
goods, their containers, and their conveyances from the point of origin to their destination.
Tracking is increasingly associated with information transfer using smarter tools such as
radio frequency identification devices and global positioning systems.
The RFID tags only serve as a tracking mechanism; they do not possess any effective security
applications. To work properly, specific frequencies will need to be designated for RFID use
only. Government assistance and cooperation is needed in order to prevent interference with
other existing devices and applications.
While RFID development is progressing rapidly, three issues could limit its spread in the near
future. First, there is an ongoing intellectual property dispute regarding parts of the
specifications related to commercializing the electronic product code (EPC) technology.
Second, EPCGlobal, the nonprofit organization charged with commercializing the EPC
technology, and the International Standardization Organization (ISO) differ on the
specification dealing with the numbering systems to which RFID tags relate. Finally, many of
the products being sold are not fully upgradeable to the next generation of RFID technology
that will be released shortly.
Authentication/Legitimization of Customs Procedures Tracking can help verify the identity
and contents of a vehicle or cargo container, and its use—coupled with risk management
techniques—make some of the current customs procedures redundant. Elimination of those
redundant procedures would expedite the customs examination process and increase the
assurance that the vehicle or cargo container is safe and originates from an authorized or
legitimate shipper.

8. RFID uses radio waves to automatically identify an object, often by storing a serial number
(and any additional information up to 2 MB) on an antenna. A receiver emits a short-range
alert when the integrity of the bulk has been compromised. Some RFID tags also monitor
environmental conditions.
Tracking automates the customs clearance system, thus minimizing the opportunity for
corruption through bribery of customs personnel. Barcode scanning simplifies the tracking
process by identifying the cargo and conveyance through an individual code and a fixed
reader and transmitting that information to a central point.
CARGO AND VEHICLE TRACKING SATELLITE SYSTEMS USING GPS & GPRS
Global Positioning System (GPS) tracking utilizes satellites to monitor fleets of vehicles or
cargo containers, thereby ensuring there are no unplanned stops and that a pre-planned route
is followed. Geostationary Earth Orbit (GEO) satellite systems use satellites that orbit the
earth in order to continuously monitor a particular area continuously.
These satellite mapping areas can be as large as North America or Australia, yet can identify
individual containers and vehicles. Networks of multiple satellites that sweep the globe and
monitor activity all over the world comprise Low Earth Orbit (LEO) systems. This category
includes voice-capable ―big LEO‘s‖ and lower cost, data-only systems dubbed ―little LEO‘s.‖
Satellite systems are only viable options for tracking when the transmitter located on the
vehicle or cargo has a direct line of sight to the satellite. They are consequently impractical
when utilized on double-stacked railcars, in the holds of vessels, and in the stacks at container
yards.
GPRS is utilized to send the information to and fro from a GPS enable device in the remote
areas. GPRS also helpful in integrating and sending information on additional units like
sensors and other functionalities based on the requirements.

9. BASIC E-COMMERCE PROCESS
PROCESS
In 1995 FedEx began to offer Internet Services which allowed the customers to track
their shipments online by means of a reference number that they keyed into the web
front end of theonline tracking system.
FedEx Internet ship now offers onscreen preparation and printing out of air-shipment
documents to the customer, storage of address books on the FedEx server and
management of shipping history information.
FedEx Virtual order helps business to get online by giving them software which
enables them to set up online catalogue that resides on a FedEx secure server.
This user interface links into a FedEx offer-handling system that registers online
customerorders and assigns confirmation numbers, then passes the order to the
software at the customer or the merchant.
The merchant then packs the order possibly with automatic inventory updating and the
merchant software generates shipping labels for the shipment by FedEx.

10. TECHNOLOGIES AND FEATURES
A. VALUE CHAIN
The value chain for FedEx Express can be seen as starting with the pick-up of the packages.
FedEx employees gather the packages from various locations such as drop boxes, businesses
and residences. Value is created for the customers by making package pick-ups possible just
about anywhere or anytime. FedEx has a money back guarantee for those people whose
packages do not arrive on time, therefore creating value by assuring timely delivery of the
packages.
After the packages are initially picked up, they must then be transported to a hub. The hub is
a central location where packages are sorted according to their destinations. The packages
will likely pass through many hands before reaching their final destination. The packages
stay at the hub until they are picked up and shipped either by truck or plane.
The package delivery is probably the greatest value creation activity for Fedex Express. The
drivers of the planes and trucks must perform their activities efficiently to increase the
perceived value of the service. The drivers must absolutely no matter what, get the packages
to their destinations on time, and they do a good job in doing so. By meeting and exceeding
the customers‘ expectations value is increased with each positive result.
The final primary activity is customer service. This function is to provide after sales service
and support, however, FedEx provides customer service during the use of the service by
letting customers track their package while it‘s in route. This creates extreme value for
customers because they are able to check the status of their package at any given moment for
an increased sense of security.
Each of the primary activities is able to take place due to support activities such as company
infrastructure, which is planes, buildings, trucks etc. Information systems, another support
activity, allow the customers to track their products and place orders on-line. Materials
management and human resources are additional support activities. Materials management
can also be referred to as logistics, or the flow of goods or services through production into
distribution. Overall, the support activities allow the primary activities to take place and
function correctly.

11. FedEx has a competitive advantage with their information systems and possibly company
infrastructure. Their advanced information systems allow for precise package tracking,
which few other companies offer. The customers can track their package by way of the
Internet, without having to contact someone from customer service, which can be very time
consuming. Other companies provide tracking numbers for packages but often times it is a
hassle to track down a package.
The massive fleet of airplanes, automobiles, and employee‘s add up to an enormous company
infrastructure. This infrastructure allows FedEx to have a very reliable delivery service.
FedEx is very confident with their time restricting package delivery service, they guarantee
their packages arrive on time when the customer wants it delivered.
B. PRODUCT TECHNOLOGY
FedEx Corporation‘s main businesses in the transportation industry are the FedEx Express
and FedEx Ground. As found in our previous research, FedEx Express and FedEx Ground
account for over $14 billion in revenues. While some technologies are specific to these two
business units, FedEx‘s dominant product technology adheres to all businesses in the
transportation industry in which FedEx operates.
The dominant product technology used by FedEx for managing operations of all business
units in the transportation industry is the internet. ―FedEx has always been a technology
trailblazer, and the success of fedex.com is testament to that.‖ The company was one of the
first to harness the power of the Internet, launching its Web site in 1994 with a bold new
package tracking application one of the first true corporate Web services. Soon after, FedEx
became the first transportation company with Web site features that allowed customers to
generate their own unique bar-coded shipping labels and request couriers to pick up
shipments.
Today, fedex.com hosts more than 6.3 million unique visitors per month and handles on
average over 2.4 million package tracking requests daily. More than 2.3 million customers
connect with the company electronically everyday, and electronic transactions account for
almost two-thirds of the more than five million shipments FedEx delivers daily. The
fedex.com Web site is widely recognized for its speed, ease of use and customer-focused
features. The Web Marketing Association praised fedex.com as the "Best Transportation Web
Site" and eWeek saluted it as a top e-business innovator.‖

12. In addition to the Internet, FedEx also uses technologies specific to its FedEx Express and
FedEx Ground businesses. Example of these technologies is the ―FedEx Solutions.‖ In short,
FedEx Solutions is a ―variety of electronic tools, applications and online interfaces for
customers to integrate into their processes to shorten response time, reduce inventory costs
and generate better returns and to simplify their shipping.‖i For example, Global Trade
Manager is a comprehensive online resource to help identify the documents needed for
international shipping.
Technical standard is ―a set of technical specifications that producers adhere to when making
the product or a component of it.‖ An example of technical standard that FedEx adheres to in
its FedEx Ground business is an ―IEEE 802.11b.‖ ―This wireless LAN standard, ratified in
late 1999, lets data fly through the air at Ethernet-level speeds: up to 11Mbps. FedEx Ground
is taking advantage of that start by expediting the movement of shipping information from
delivery workers' terminals to a central database. Wireless LAN technology lets FedEx
Ground give its customers faster delivery confirmations, including signed proof of delivery.
Last fall, the company began deploying wireless LANs at each of its more than 400 local
pickup and delivery centers as part of an $80 million technology upgrade project. As the vans
return home, the LAN automatically moves package data from drivers' portable computers to
the database. ―As mentioned in the article ―Wireless LAN technology was designed to be
open.‖ This suggests that the standard is accessible to anyone and is therefore in the public
domain. In my understanding, this standard was set by the IEEE P802.15 Working Group for
Wireless Personal Area Networks (WPANs)

13. IMPORTANCE TO ENTERPRISE
With the application of E-commerce, Transtec has noticed an increase in turnover,
improvement in customer and supplier relationships and in productivity.
Other benefits have been that it attracts new customers and has improved its image
and market reputation.
The Internet is now comprehensively integrated into the company's
bussinessprocesses andsupports the employees in their daily activities.
CUSTOMER BENEFITS
Imagine the speed and simplicity of accessing FedEx® transportation services and all your
transportation needs through a single system. A system offering a FedEx Compatible
Solution* can make it happen. These fee-based solutions combine FedEx quality with the
efficiency of a single-source shipping solution, so you enjoy the following:
INCREASED EFFICIENCY
One streamlined system eliminates redundancies of separate terminals for different
transportation carriers.
Evaluate shipping options and rating information for FedEx and other carriers from a single
touch-point.
Automate document preparation such as shipping manifests and customs documents.
Integrate with your host system for seamless information transfer.
GREATER RELIABILITY
Check where you are in the delivery process at any time via centralized tracking.
Direct technical questions through one automation expert who knows your shipping
system.
REDUCED COSTS
Manage your company's shipping expenses more easily and accurately.
Minimize costly employee training by focusing on a single shipping system - initially and
with each system upgrade.
i
http://www.fedex.com/us/about/technology/automation.html, 2003. ―About FedEx Automated Solutions,‖ October 26.