Fedex Supply Chain Case Study

The announcement highlights the FedEx investment in expanding its international e-commerce offerings.

FedEx CrossBorder, a subsidiary of FedEx Trade Networks, offers e-commerce technology solutions that enable e-tailers to navigate common cross-border selling challenges - such as regulatory compliance, secure payment processing, multi-currency pricing, or credit card fraud protection - and offers access to e-commerce shoppers around the globe.

“Customers are looking for ways to tap into e-commerce markets internationally, and FedEx CrossBorder helps provide that access,” said James R. Muhs, president and CEO, FedEx Trade Networks.

“FedEx CrossBorder expands the FedEx portfolio and provides e-tailers with opportunities to ship locally and grow internationally. E-tailers ship their orders to one of our domestic locations, and FedEx CrossBorder gets the orders to the customers’ international destinations.”

FedEx CrossBorder e-commerce solutions can work within a business’ existing website and shopping cart platform for a secure and integrated checkout experience that allows e-tailers to maintain their brand identity and customer experience with the opportunity to reach new customers in more than 200 countries and territories.

“Only about one-third of U.S. based global e-commerce sites accept foreign currencies, and research tells us that customers are more likely to abandon shopping carts that only show U.S. dollar pricing,” said Chip Hull, vice president, FedEx CrossBorder.

“FedEx CrossBorder addresses international purchasing obstacles with a seamless checkout and delivery approach that accepts over 80 currencies, provides 15 payment options, manages multiple delivery options, and offers credit card fraud protection, all through a single platform.”

The introduction of FedEx CrossBorder comes at a time when global e-commerce is growing, with online buying behavior representing over $1 trillion in sales per year. That number is forecasted to nearly double within four years.

About FedEx CrossBorder
FedEx CrossBorder and its international technology solutions provide the tools needed to help ease the challenges of international e-commerce such as duty calculations, package tracking, calculating other international shipping costs, and currency conversion. The company’s technology solutions help enable businesses to expand global sales by providing access to new consumers in over 200 countries and territories. FedEx CrossBorder is a subsidiary of FedEx Trade Networks, Inc. and is comprised of innovative e-commerce cross-border enablement capabilities. For more information, visit fedex.com/crossborder.

About FedEx Trade Networks
As the international freight forwarding arm of FedEx Corp., FedEx Trade Networks connects 95 percent of the world’s gross domestic product (GDP) with its comprehensive suite of solutions. The company’s network of worldwide locations and alliances enables it to help customers of all sizes build solutions to fit their shipping needs, specializing in e-commerce, air and ocean freight forwarding, customs brokerage and other trade facilitation services. FedEx Trade Networks provides customers the global reach and local expertise to help optimize their supply chains – all while being backed by the reliability of the FedEx brand. For more information, visit ftn.fedex.com.

Related:FedEx Not Worried About Amazon’s Logistics Moves

Download the Paper:  Seizing The Cross-Border Opportunity

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 the last two years, FedEx Supply Chain Management has been focusing on leveraging sourcing and contracting for all of the Fedex family of companies. For office supplies, instead of having each company run a contract, SCM has a single corporate contract for all of the negotiation effort, but allowing for different transactional approaches. It has been a gradual migration to getting to a centralized view to how procurement will happen. It is central for the larger spend areas, and different policy requirements. A big component of this model is the integration of Ariba Buyer – expanding the use of it to other operating companies, and processing requisitions within the SCM group. Most of the best practices discussed in this case are associated with FedEx Express, but is slowly being migrated across all of the operating companies. 2ILLUSTRATIVEFedEx is much more than your typical air express carrierThe 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.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 needsNorth 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.A full-service customs brokerage, trade consulting, and e-clearance solutions organization designed to speed shipments through customs using advanced e-commerce programs.Provides customer access to the full range of FedEx transportation, logistics, e-commerce and information services by integrating sales, marketing and information technologyA $20-billion market leader in transportation, information, and logistics solutions, providing strategic direction to the five main operating companiesFedEx Freight is 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.The Sourcing Process FedEx established a seven step sourcing process. Step 1: First step is an assessment of the category that profiles that industry and commodity. The team will ensure that they are clear on the user requirements from the corporation, and try to define what that category amounts to. For example, on promotional items – where should the boundaries be drawn? How does the team define these? This involves doing a lot of research on the nature of existing purchasing activity,

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