Institute of Business Administration, Jahangirnagar University

MEMO

To: Mohammad Anisur Rahman, Assistant ProfessorFrom: Group A (Md. Rakib Jobayer, Id: 201203020; Md. Hosniwat Khadem,Id: 201202011; MD. Mofizer Rahman, Id: 201202046; Muntasir Munim Chowdhury, Id: 201201110; Md. Rasel Miah -201201028)Date: January 31, 2013Subject: Case on How FedEx Works: Enterprise Systems

Question-1: List the business processes displayed in the video.

As displayed in the video, first, a FedEx agent picks up a package and scans it, entering it into the system under a unique identification number. It is then transferred into a hub, or sorting center, via a truck containing other similar packages. Once it reaches the nearest sorting center, which are over two football fields long and have everywhere from five hundred to a thousand workers, the packages are stored via a system on conveyor belt. FedEx uses several types of technology to sort the packages it ships. A dimensional scanner gets the length, width, height and weight of packages to determine their size and eventual cost of shipping. Another multidimensional scanner reads the barcode from any location on the package except the bottom. Then, paddles nudge the packages onto different slides depending on the eventual destination. Some packages require manual sorting instead of this automated method. Once the packages have been sorted, they are placed into boxes together. The boxes are shaped in such a way that they will fit into a plane with maximum efficiency. A FedEx air control center coordinates the arrival of trucks and monitors airport and airplane conditions. Once the planes take off, travel and reach their destination, a FedEx courier delivers the package by hand, and scans again to signify the completion of the transaction.

Question-2: List the types of information systems shown in the video. Can you describe how systems that were not shown might be used at FedEx?

Transaction Processing Systems in the form of the FedEx Sorting System that generates data about each package's weight, width, length, volume, destination, etc. Management Information Systems and Decision Support Systems in the FedEx Control Center that serve the middle managers in this center and help them coordinates the arrival of trucks and monitors airport and airplane conditions based on data provided from TPS to make sure that they made the appropriate routing and each package goes to its right destination.

The type of information systems that was not shown in the video is the Executive Support System. Executive Support System (ESS) is a reporting tool and might be used by FedEx by allowing it to turn the data provided from the TPS and MIS into useful summarized reports. These reports can be used by executive level managers for quick access to reports coming from all FedEx levels and departments such as billing, cost accounting, staffing, scheduling, and more. In addition to providing quick access to organized data from departments, some Executive Support System tools also might provide analysis tools that predict a series of performance outcomes over time using the input data. This type of ESS is useful to executives as it provides possible outcomes and quick reference to statistics and numbers needed for decision-making.

Question-3: The system displayed in the video is an enterprise system. Why is this true? Explain your answer.

The FedEx system displayed in the video is an enterprise system because it permits the integration of data generated and held in FedEx system, and permits the integration of the computer systems that run all phases of a FedEx's operations to facilitate cooperation and coordination of work across the enterprise. The intent is to integrate core business processes (accounting, finance, human resources, sorting and shipment, etc.). The ideal enterprise system could control all major business processes in real time via single software architecture. In other words, this system collects data from different functions and stores data in single central data depository. As was clearly shown in the video, the FedEx system enables coordination of daily activities. For example, scanning a package after picking it up enters it into the system and assures that the package has been received. Then after reaching the sorting center, special scanners can measure the size of the package to charge customers based on the size. Other scanners that read the labels on the boxes generate information about the destination of each package which helps in the routing process. Moreover, the FedEx system enables efficient response to customer package shipment orders, and provides valuable information for improving management decision making in routing for example.

Question-4: How important is technology to FedEx's business processes?

As businesses become more competitive in the global marketplace, information and technology have become increasingly important. Over the years, the FedEx name has become synonymous with a tradition of automation, customer service and technological leadership. Since the company pioneered tracking and routing technologies, FedEx has developed large integrated telecommunications and information systems. FedEx provides two services to its customers: the physical transportation and distribution of packages and the information systems that identify the location of a package at any time. As the leader in the express transportation industry, FedEx was the first to install computers in vans, provide sophisticated automation in the mailroom and develop tracking capabilities and software. Customers have come to depend on the reliability and high rate of efficiency of these systems.FedEx Provides shipment visibility, status notifications and alerts about critical shipment events, thereby equipping customers with an unsurpassed capability to plan for and manage inventory in motion. FedEx identifies FedEx Express shipments by associating them to a customer and by matching an account number or company name and address, placing flexibility and control of information in the hands of each user.

Question-5: How could FedEx's shipping process be made even more efficient?

After observing the video, FedEx has made its shipping process more efficient by filling every inch of the containers used to carry the packages on the aircrafts. Moreover, the containers are in different shapes designed specifically to fit into the aircraft they will be on. As we noticed in the video, the containers' edges are not perfectly square in order to fit into the aircraft. FedEx's worldwide marketing goal is to create a consistent, brand-building messaging and design across all customer communications. In continuing with the growth opportunity of globalization, and the service extension into new and untapped markets, I think that if FedEx attempts to unify the diverse markets by standardizing its product, this will increase efficiency of shipment and reduce costs through uniform corporate responsiveness.