FedEx in the year 2000 was able to join other global companies to develop e-commerce technology. The main intension of gaining access to this type service it to gain competitive advantage to its biggest rivals United Parcel Service. In collaboration with internet business company orbit the service was lunched to offer express delivery. In the intention of merging these two companies in terms of services is to offer application and host services that would help small medium business (SMEs) get an opportunity to shop through the internet effectively and fast. These internet stores have been linked together by FedEx’s shipping and tracking systems. With the provision of such services the delivery company was able to be included with e-commerce network companies such as Bank of America, Amazon.com as well as other shops whose service are aimed at helping and hosting businesses to create e-commerce services and online stores.
FedEx has been able to shift its business by not only conducting delivery services but also to offer subsidiaries services which are aimed at reaching and developing into new businesses in the package industries. The first phase of the e-commerce changes was to provide SMEs with logistical support from ordering services made by warehousing and customer services. In addition FedEx has also been able to offer web design and hosting service after in initiation of e-commerce (FedEx Home website, 2011).
The core aim of FedEx business is to offer logistical services that are based on expertise, professionalism, and discipline. Through the introduction of e-commerce, FedEx clients can be able to benefit from higher productivity of assets (fixed and current assets), global visibility of local and international inventory, greater profitability and maximization of profits and reduced requirements needed for capital work flow (Berman, 2013). FedEx e-commerce mission is to formulate and develop strategic alliances with their clients in order to gain competitive advantage through the provision of instant logistic and express services. FedEx attains this by providing business solutions by taking charge of its express logistics website and management of its supply chain.
The distribution center of FedEx provides all round inventory management, after sale services, distribution and logistic services among others. These services offer strategic services of its client’s important components in order to meet the customer’s needs. The clients are assisted or provided by FedEx via storage of their products, fast deliver services and filling of orders. This means that the delivery time of receiving goods by the customers is reduced it also helps in reduction cost. Commonly, FedEx customers have reduced cost inventory and also rectify damages to items if they occur. The clients of FedEx have access to correct and accurate information. This is mainly done through information technology and over the internet which provides immediate information and data. In addition the customers using FedEx e-commerce services are able to access, global markets and customers through online database. Through, FedEx customers are able to get rich information of solutions to all the supply chain components like express transportation, tracking services, fulfillment of order management and return services.
Berman, J. (2013). 2013 Parcel Express Roundtable: FedEx/UPS duopoly reigns. Logistics management (Highlands Ranch, Colo.: 2002), 52(1).
FedEx Home website, (2011) FedEx Logistics, Electronic Commerce. Retrieved from HYPERLINK “http://fedex.com/cgi-bin/DS.apacgsp.cgi?catalog&id” http://fedex.com/cgi-bin/DS.apacgsp.cgi?catalog&id.