Structural Transformation Through E-Business Essay

6325 Words Jan 3rd, 2011 26 Pages
FedEx Corp.: Structural Transformation Through e-Business
Pauling Ng and Ali R Farhoomand
The University of Hong Kong
FedEx has built superior physical, virtual, and people networks not just to prepare for change, but to shape change on a global scale. to change the way we all connect with each other in the new Network Economy. FedEx is not only reorganizing its internal operations around a more flexible network computing architecture, but it's also pulling-in and in many cases locking-in customers with an unprecedented level of technological integration. Since its inception in 1973, Federal Express Corporation had transformed itself from an express delivery company to a global logistics and supply-chain management company. Over the
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As businesses expanded beyond national boundaries and extended their global reach to take advantage of new markets and cheaper resources, so the movement of goods created new demands for the transportation and logistics industry. With this, the competitiveness of transportation companies depended upon their global network of distribution centers and their ability to deliver to wherever their customers conducted business. Speed became of significance to achieve competitiveness, not only for the transportation companies but also for their customers. The ability to deliver goods quickly shortened the order-to-payment cycle, improved cash flow and created customer satisfaction. Advances in IT promoted the globalization of commerce. The ability to share information between operations/departments within a company and between organizations to generate operational efficiencies, reduce costs and improve customer services was a major breakthrough for the express transportation industry. However, of even greater significance was the way in which new technology redefined logistics. At a time when competition within the transportation industry was tough and transportation companies were seeking to achieve competitive advantages through value-added services, many of these companies expanded into logistics management services. Up until the 1980s, logistics was merely the handling, warehousing and transportation of goods. By combining the functions of materials management and

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