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Fedex Powers Supply Chains Through Synchronized Reliability Solution Provider http://fedex.ASCET.com FedEx Powers Supply Chains Through Synchronized Reliability ogy and physical assets to offer clients a Synchronized ReliabilitySM – for its FedEx is a trusted international authority on global supply chain management, advanced new breed of supply chain management. customers (Figure 1). information capabilities, fulfillment, transportation management, and returns management. A Heritage of Delivering Results through Supply Chain Experience Synchronized Reliability eading companies recognize that they Building on its heritage as a world-class According to ACNielsen research, delivery Lcan create as much value by reconfig- express transportation company, FedEx has reliability is the single most important uring their supply chains as they can by developed an organization that enables cus- attribute shippers consider when selecting developing new products or manufacturing tomers to seamlessly move anything around a transportation provider for supply chain techniques. In fact, evidence suggests that the globe, from a small parcel of high-tech management services.3 median companies typically spend from parts to pallet loads of industrial goods. Synchronized ReliabilitySM takes delivery two to three times more to run their supply Today FedEx delivers a comprehensive reliability to the next level. While delivering chains than best-in-class companies (those supply chain offering through a network a shipment on time is important, it’s just performing in the top 20th percentile).1 of subsidiaries, including FedEx® Express, the first step. Orchestrating supply chain Today’s technology – and its unprece- the world’s largest express transportation activities so that customers receive what dented capacity for integration – enables company; FedEx® Ground, North America’s they want, when and how they want it – companies to achieve remarkable results second largest provider of small-package on time, every time – requires effectively by re-engineering their supply chains. For ground delivery service; FedEx® Freight, synchronizing the flow of goods and infor- example, a leading specialty retailer a leading provider of regional less-than- mation. That’s Synchronized Reliability revamped its supply chain and slashed tran- truckload freight services; FedEx® Custom Delivering Synchronized Reliability sit time for inbound materials from several Critical, the world’s largest provider of requires operating a seamless and smart weeks to a few days. A high-tech company’s expedited time-critical shipments; and supply chain, one that provides global new fixed lead-time model compressed FedEx® Trade Networks, a provider of cus- visibility of critical information and enables order-to-delivery time from nearly a month toms brokerage, information technology informed, streamlined decision-making. to less than a week. Another high-tech and trade facilitation solutions. Supply chain and systems know-how, manufacturer is investing tens of millions of FedEx® Services provides customer access along with a multi-faceted digital network dollars in streamlining its supply chain to to the full range of FedEx transportation, and a global physical network, allow our enable 48-hour delivery. It expects to achieve logistics, e-commerce, and supply chain customers to move goods and information a competitive advantage worth more than solutions. By integrating sales, marketing, with precise timing and full visibility. 10 times its investment within a year.2 and information technology functions, FedEx provides this precise synchronization FedEx is assisting many of its clients in FedEx Services leverages the strengths of to a variety of companies, regardless of achieving such breakthrough results. It’s a each operating company to develop and their size, which can help them to optimize natural evolution of the company’s core deploy superior customer-driven solutions. their supply chains, cut costs, and enhance strength. For decades, FedEx has delivered FedEx has invested in information sys- customer satisfaction. cutting edge logistics through advanced tems and operational infrastructure to information technology. As early as the ensure that each of these subsidiaries offers It Pays to Invest in Reliability 1970s, the company was pioneering global the world-class service and information A supply chain built on synchronized deliv- networks that offered an unprecedented technologies that is a hallmark of the ery of goods and information pays off in level of near real-time shipment informa- FedEx brand. three critical areas: revenue reliability, tion. FedEx has led the way in developing FedEx’s transportation and supply chain expense reliability, and asset reliability. innovative applications such as electronic expertise, its highly acclaimed information • Revenue reliability – Orchestrated shipping transactions, Internet tracking, and systems, its integrated supply chain appli- time-definite delivery improves both shipping via the Web. cations, and its unparalleled global net- customer service and satisfaction. Today, FedEx draws on that experience work enable FedEx to deliver a new level of Satisfied customers tend to buy more, and expertise and is leveraging its technol- supply chain efficiency – dubbed are more loyal and less likely to ➤ The ASCET Project • 39 Solution Provider ➤ defect, which leads to top-line benefits. Synchronized delivery also improves vendor compliance and facilitates timely invoicing, further increasing the reliability of revenue Express Ground streams. Server • Expense reliability – Optimized trans- Solutions portation management, outsourced Integrated logistics services, and the optimiza- Solutions tion of inventory investment can reduce overall supply chain expenses. Streamlining information and physical flows across the supply chain can Freight Custom Critical also significantly compress cash-to- cash cycles. • Asset reliability – Synchronized FedExNet® delivery can speed inventory turns, decrease the need for safety stock, shorten cash-to-cash cycles, and enable more effective utilization of Trade Networks plants and equipment. Figure 1 Synchronized Reliability The benefits of Synchronized ReliabilitySM are far-reaching and can impact both the top and the bottom lines, resulting in naming FedEx its “International Supplier increased shareholder value. of the Year.” True Merge-in-Transit 1-2 business days Cycle Time FedEx has earned the General Motors 1-2 business days* A Value-Added Portfolio Built Corporation “Supplier of the Year” award on Synchronized ReliabilitySM for three years in a row. FedEx manages the Shortly after it won FDA approval for inbound transportation for more than 1,500 a new product, a large, global healthcare suppliers into 26 GM powertrain engine, Customer Merged Delivery Channel company teamed with FedEx to transform transmission, and component plants. Bo • Transportation OEMs/Suppliers its supply chain so that it could rush Anderson, executive in charge of GM • Information the product to market within hours after Worldwide Purchasing, noted that “FedEx * Using FedEx Priority Overnight® Service gaining the approval. FedEx synchronized Supply Chain Services represents the best Figure 2 FedEx EMerge deliveries directly from the company’s of the best, and the organization has set an regional distribution centers to the example … for other companies to follow.” storefronts, producing a coordinated, FedEx offers a number of pre-integrated Orchestrated Delivery Management – These cost-effective solution for nationwide solutions that provide streamlined, seam- leading edge, just-in-time solutions syn- same day deliveries. less service. For example, FedEx informa- chronize delivery of products to customers A similar innovation is in place tion systems integrate financial, order, and and improve asset management through at Compaq Computer Corporation. shipping data for customers and their trad- time-definite delivery and visibility. FedEx Express manages portable com- ing partners. Pre-integrated solutions are For example, FedEx EMerge® is a true puter shipments for Compaq’s North also available in the FedEx transportation merge-in-transit solution designed for com- America Regional Logistics Operations. network and among core carrier providers, panies that ship multiple component orders Their portable computers are manufac- helping to reduce speed-to-market and take from different locations.4 This advanced tured in Taiwan and shipped to the the hassle out of integrating systems. process coordinates delivery to the end cus- United States. FedEx technology integra- FedEx offers a number of innovative solu- tomer by merging the shipments in transit tion with Compaq’s computer systems tions to orchestrate the movement of goods to arrive in a single, consolidated delivery in Asia, coupled with its expertise and information. They fall into four cate- on the specific date selected by the shipper in global supply chain management, gories: orchestrated delivery management, (Figure 2). Through EMerge, manufacturers dramatically shortened the delivery transportation management services, fulfill- and distributors are able to provide their cycle. Compaq recognized the effort by ment services, and returns management. customers time-definite delivery, minimize 40 • The ASCET Project Solution Provider brick-and-mortar and inventory invest- and reliability that FedEx is known for. http://fedex.ASCET.com ment, while reducing total logistics and Fulfillment Services – FedEx offers pre- transportation costs.
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