Question

What are the sources of FedEx distinctive competencies? Which functions are most important to it? How does FedEx design its structure, control, and culture to enhance its

(a) efficiency, (b) quality, (c) innovativeness, and (d) responsiveness to customers?

Answer 1

“Distinctive Competency is described as a unique technology or skill set which shows your distinct value to the customer.”

The sources of distinctive competencies of FedEx are as follows:

• Great logistics management / Express transportation
• Providing E solutions

The core functions are as follows:

1.FedEx operates six independent business units FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Trade network, and FedEx Services. They provide a wide range of transport solution, tailor-made to meet different clients requirements.

2.Critical for logistics efficiency and competitive advantage s the IT solution back up where all cargo movement can be tracked by the customer online

3.They guarantee delivery across the globe in 24-48 hours.

4.The service is available and convenient with cargo pick and drop facility from customers doorstep.

5.They handle end-to-end logistics and manage supply chain function of many large supermarket chains, apparel brands, automobile component suppliers etc.

It designs it structure, controls, and culture to increase its efficiency, quality, innovativeness, and responsiveness to customers as follows:

• Efficiency in IT systems: Integrating information systems and IT solutions with logistics and supply chain management provide an efficient seamless integration of the entire logistics function. The system will maintain the inventory, transport raw material, provides warehousing, and deliver the finished goods to the distribution hub and subsequently from distribution points to the final end customer. The customer can track movement on a prime application software Fedex E-shipping tools a web-based application. They deliver packages across the globe efficiently with 24-48 hours framework.
• RFID Technology: The RFID (Radio Frequency Identification) tags are put on all cargo and assist in tracking the position of the cargo at all points. It also allows quick movement of the parcel by the position of cargo and movement from port to container to a truck is constantly monitored. This also makes custom clearance easy and reduces the chances of corruption and bribery.
• Cargo and vehicle tracking satellite system using GPS and GPRS: Global positioning systems installed in all trucks and uses satellite to monitor the movement of its fleet and cargo. It restricts misuse of transport and can track any unnecessary stops or route change if done. Further, it also can track and send information to remote locations.
• Maximizing Value chain: The staff will pick up the package from anywhere at any time. They promise money back guarantee if packages are not delivered on time. Once packages reach the warehouse they have to be efficiently sorted and dispatched to ensure delivery in the correct location\n. The error in sorting can reach package to different location. The customer can also track the package from pick up to delivery.
• Excellent Customer Service: The staff is trained to go an extra mile for customers, in some cases where packages were delayed and contained baby food, the staff has gone out of the way to purchase and supply the same brand of baby food to facilitate and ease the customer.

All above give customer greater control of their cargo and help reduce costs by reducing the need to maintain excess inventories; the further customer can track their parcel from the time of shipment to time of receipt of the goods. The FedEx provides a single shipping system making it easy to plan and schedule deliveries and cargo movement.