Supply Chain Management Final
Fed-EX Interview Questions.
Fed-EX has a very complex and detailed business strategy and business model. Fed-EX has a various locations and hubs to deliver packages customers on time in a fast and effective and efficient manner. Their employees on their day to day operations range from unloaders, loaders, sorters, and delivery drivers to part time supervisors who supervise the loading and unloading of packages, supervisors who supervise the sorting and supervisors who supervise the drivers, the shift supervisors, the building managers, regional managers, division managers, vice presidents, and the president and CEO of the company. Fed-Ex uses a complex system of conveyor belts and sorting machines to ensure the packages care going to correct locations in a safe and proper manner. Their sorting and delivery system are similar to their main rival companies such as UPS and DHL, but they have a specific delivery system which prioritizes how and when the packages are delivered to their customers. Unlike UPS and DHL, they have separate drivers to deliver their air bound packages and ground delivery packages.
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The main differences being that the packages being shipped VIA air costs more money and has less time to be delivered to their customers, so air packages have priority over ground packages but only priority in it’s delivery system. Not how the package is treated. It’s easily confused because someone may think that an air package that’s being delivered that has low value to the package is more important than a ground package of high value which isn’t the case. Air packages simply mean that a customer paid more money for its delivery and it has more importance and less delivery time to reach the customer as compared to the ground packages. Ground packages are just as important and are treated with just as much respect and sensitivity as an air bound package, there is just a longer time window that they have, to deliver the package. Fed-EX prides itself in operating in a non-union workplace environment. Unlike UPS and DHL which have union representation for the workers to protect their working rights, their working conditions, and uphold their end of their contractual obligations and collective bargaining agreements, Fed-Ex does not need union representation for their workers to protect their working conditions, worker rights, and wage increase and promotional opportunities. Fed-Ex also doesn’t just use trucks to deliver their packages, but they also use aircraft and merchant ships going across the oceans to deliver their packages to their hubs in a timely manner. Fed-Ex drivers also have different options available to their use that other companies don’t.
For example, if a driver is delivering a specific route and wants to switch it up with another driver or allow another driver to deliver their packages, they have the option to use someone else to deliver their packages which can help relieve stress of too much product to be delivered in a specific timeframe. Fed-Ex isn’t a typical nine to five, eight hour a day kind of job. When the day starts for a driver, the day doesn’t end until all the packages on their truck are all delivered so there’s overtime options available but they are supposed to be in regular contact with their delivery hub to ensure that if the driver needs help, they get the proper help to get the job done because there is a federal law that states that anyone who drives trucks or package delivery trucks aren’t supposed to exceed twelve hours of consistent driving and working to ensure the safety of the driver and the other people who use the roads. The same principle goes for the part time dock workers who sort the air packages, load, and unload the trucks. It may be a part time job; however, the duty day doesn’t end until all the trucks that need to be unloaded on a certain shift are unloaded and all the trucks that are supposed to be loaded are loaded by the end of the work shift. The business model and strategy are easy to follow as long as people understand that there is an order of hierarchy that the packages being delivered have priority over others and that the duty days aren’t a clear cut eight hour a day, five days a week kind of company. Work is done when all the packages have been loaded, unloaded, and delivered by the end of each duty day.
Expectations of the future including my assessment. The future of the company is growing and will continue to grow for the greater good of the company. Ever since the invention of the internet and E-Commerce shopping, the company’s business has exploded to exponential proportions and they’ve created more jobs, hired more workers, and have created more work for it’s workers over the last two decades than over the last four decades before it. There is competition in this field but it’s very limited and is pretty much designated to companies such as UPS, DHL, and the USPS. There are other smaller companies out there but not on the same level of competition as the other companies I’ve mentioned above. There are other companies on the rise such as Amazon, however, Amazon is specializing in manufacturing and delivering of their products.
Fed-Ex doesn’t manufacture any of the products they deliver. They are a service-based company. There are overhead costs, fuel costs, maintenance costs, and service costs, however, the costs they endure aren’t as much as a company that manufactures its own goods and delivers its own goods. My assessment of this company is that it’s a superior company to its competitors. One reason I can assume this is because they have no need for union representation and have done a great job historically at keeping the unions out and keeping the workers happy and satisfied with everything they do and what the company offers to its employees. The Fed-Ex corporation also prides itself on having separate divisions and drivers for their air bound packages and ground bound packages.
Whereas UPS and DHL will deliver their air packages and ground packages at the same time with the same driver delivery system which causes a higher percentage of packages to be delivered late to their customers, requires drivers to work longer to make their time commitment delivery system which costs more overtime pay and stress to their workers, and businesses who need certain packages delivered buy a specific timeframe has a longer time window with other companies other than Fed-Ex. Fed-Ex will continue to expand its operations and continue to be successful for a very long time to come.
2 interesting facts about Fed-Ex.
Fed-Ex keeps empty planes in the sky. This would seem to cost the company too much extra money but they have such a large quantity delivery system that they have to keep aircraft on standby to ensure that any extra packages that cannot make it on its original aircraft for its original delivery destination, they will have the empty aircraft on standby ready and available to handle the overload and deliver them to its proper destination and hubs. Their aircraft also has anti-missile counter attack capabilities and are the only commercial jets in the world that do this for the safety of their pilots and their packages,
Interesting fact number 2. The Fed-Ex corporation was thought of in 1965 by a man named Frederick W. Smith. He was a Yale graduate. He wrote a term paper on a worldwide delivery system that would revolutionize the shipping industry. Most companies relied on passenger route system’s, but this didn’t make sense to Frederick W. Smith. In August 1971, after serving his country in the armed forces, Smith bought Arkansas aviation systems located in Little Rock Arkansas. With his term paper still on his mind and his revolutionary idea of a delivery system, he created Fed-Ex. Fed-Ex began its actual operations in April of 1973 with 14 airplanes and 186 packages and delivered them all to over 25 U.S. cities from New York to Florida. It didn’t start to show major profits until 1975 but soon became the premier carrier of high priority packages and goods in the marketplace and the standard for shipping packages Express was established.