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Fed Ex Sourcing

Fed Ex Sourcing - Strategic Sourcing and Supply at Federal...

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Strategic Sourcing and Supply at Federal Express 1 Prepare a set of detailed responses to the following questions after reading the case: 1. What are the key elements that must be completed at each stage of the strategic sourcing process? 2. How does the governance structure for supply chain management at Federal Express support the strategic sourcing process? 3. Are there elements of the strategic sourcing process used at Federal Express that apply to other companies? Background – Federal Express FedEx Corporation is a $20 billion market leader in transportation, information, and logistics solutions, providing strategic direction to the five main operating companies. These include: FedEx Express: The world's largest express transportation company. Leveraging its unmatched air route authorities and extensive air/ground infrastructure, FedEx Express connects markets, within just 1 to 2 business days that comprise 90% of the world's economic activity. FedEx Ground: North America's second-largest ground carrier for business- to-business small-package delivery. Provider of innovative new residential delivery service – FedEx® Home Delivery – in key U.S. cities and a pioneer in applying advanced information technology to meet customer needs FedEx Freight: A $1.9 billion leading provider of next-day and second-day regional LTL freight services. FedEx Freight is comprised of two independent yet complementary operating companies, American Freightways and Viking Freight, known for exceptional service, reliability and on-time performance. FedEx Customer Critical: North America's largest time-specific, critical- shipment carrier provides exclusive-use, non-stop, door-to-door delivery throughout the U.S. and Canada and within Europe – 24 hours a day, 365 days a year. FedEx Trade Networks: A full-service customs brokerage, trade consulting, and e-clearance solutions organization designed to speed shipments through customs using advanced e-commerce programs. FedEx Services: Provides customer access to the full range of FedEx transportation, logistics, e-commerce and information services by integrating sales, marketing and information technology 1 This case was developed by Robert Handfield of NC State University based on interviews with Federal Express associates, working with Brenda Liker and Jaymie Mitchell in developing best practices in sourcing for the Bank of America.
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FedEx Center-Led Initiative Prior to the purchase of the Ground, Freight, and other non-express based services, Federal Express had re-organized all of its major indirect spend in information technology, aircraft, facilities/business services, vehicles/fuel/ground service equipment, and supply chain logistics groups under the “Strategic Sourcing and Supply” group, led by Edith Kelly-Green. After the purchase of these different businesses occurred, the supply management function was re- organized into a Center-led Supply Chain Management sourcing model. Over
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Fed Ex Sourcing - Strategic Sourcing and Supply at Federal...

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