Company Background
FedEx Corporation is a multinational courier delivery services company headquartered
in Memphis, Tennessee. FedEx is known for overnight shipping service and having a system that
can track packages and provide real time updates on package location. The company
transitioned from only delivering to U.S. locations to expanding and unsurpassed networks and
delivering to customers in more than 220 countries and territories. The long term goal is to
connect people with goods, services and ideas to create opportunities to improve lives. They
believe that a connected world is a better world, and that belief guides everything they do
(FedEx.com). The company is heavily reliant on the innovation of new technologies and
implementation of IT within their framework to pursue their long term goals.
Current System and Network Overview
Currently FedEx boasts one of the leading logistics systems in its industry. The company
is able to provide real time tracking for each shipment, this made possible by the use of the
world’s largest computer and telecommunication networks. The telecommunication networks
are connected to what the company calls a “Super Tracker”, which is a handheld device that
can record the transit of FedEx’s shipments through the entire company’s network. FedEx’s
system is designed to serve all facets of the worldwide population. The company is able to
provide services that are business-to-consumer, business-to-business, or as simple as even
consumer-to-consumer. All parties involved in the shipping process have the same level of
transparency and visibility to track the package via the delivery system.
The logistics system utilized by FedEx is reliant on proper integration. The need for
flawless communication between each system is imperative to make sure the entire process
can flow seamlessly end to end. An example of this would be where a customer goes to the
FedEx website, enters in the required data to get a shipping label and then proceeds to drop off
the package at a FedEx store. The system that is collecting the data from the customer needs to
have integration to the level where the information is disseminated to the rest of the network
properly so the package can be delivered without any errors or delays. This integration
discussed in the example is FedEx Web Services being integrated with FedEx Express, FedEx
Ground, and FedEx Freight.
The need for advanced logistics technology has been primarily been driven by consumer
needs and competition within the market. FedEx CIO, Rob Carter, recently made the remark
“People won’t respect us for our traditions; they will respect us for our innovation.” In the
