Value Chain Analysis of FedEx

FedEx is a transportation and e-commerce business service-providing company. Frederick W. Smith founded the transportation service-providing company in 1971. Today, we’ll discuss the value chain analysis of FedEx supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Facts about the Suppliers of FedEx

• 88% of small businesses worldwide
• Out of which; 66% of suppliers are from the US
• 66% suppliers from the American continent
• 61% of suppliers from Europe
• 54% from the AMEA
• They all have employed approximately 16.5 million employees

The Value chain analysis of FedEx supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of FedEx value chain analysis company example as follows;

Value Chain Analysis of FedEx

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of FedEx supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of FedEx

Some of the five main primary activities in the value chain analysis of FedEx supply chain analysis are as follows;

Inbound Logistics of FedEx

I-Suppliers Diversity

FedEx has established a very large supplier network comprising approximately 360,000 suppliers in various countries across the world. The supplier businesses have employed over 16.5 million employees in their facilities. In fact, the company brand has made a strong commitment to collaborate and partner up with diverse businesses. The diversity initiative helps the company to serve customers better and effectively compete in the global market.

Some of the main diverse business partners of the company are as follows;

• National LGBT Chamber of Commerce
• Mid-South Minority Business Council Continuum
• ICIC
• Women’s Business Council Southwest
• TSMSDC (Tri-State Minority Suppliers Development Council)
• National Veteran Owned Business Association (NaVOBA)
• NMSDC
• Women Business Enterprise National Council (NBENC)

II-Regulations & Code of Conduct for Suppliers

FedEx has set clear guidelines, regulations, and code of conduct for suppliers, vendors, and 3rd party service providers to comply with. Some of them are as follows;

• Building and maintaining a healthy and safe workplace environment
• Workplace security means no physical assault, no bullying, stalking, or any other type of violence
• Offering equal employment opportunities for all regardless of age, gender, sex, or any other type of differences
• Zero-tolerance policy towards human trafficking and modern slavery, and violation of human rights standards
• Securing confidential data like financial information, cost, marketing, and business plans
• Data security and privacy from any type of cyber-attacks and unauthorized access
• Maintaining the record to satisfy the financial requirements and obligations

Outbound Logistics of FedEx

I-Transportation

FedEx invests a significant amount of capital resources in TMS (transportation management system) to ensure transparency in transportation trends. The company employs various analytical tools to comprehend driving costs, track shipments, and accurately predict transit time. However, the professional expertise and tech capabilities allow the brand to take cost-saving initiatives.

II-Freight Forwarding

FedEx employs various transportation channels and mediums like aircraft, ships, and vehicles to deliver the customer’s packages across the globe. The company offers online tracking options to customers by employing the vendor management system, GPS technology, and purchase orders.

III-Distribution

FedEx efficiently manages the storage and inventory of the stock to ensure the timely availability of products and goods for delivery and distribution. The transportation service provides company collaboration with various partners and professional experts to manage logistics and distribution operations like trans-loading and cross-docking.

Operations of FedEx

I-Warehouses & Distribution Centers

FedEx has established a network of more than 130 warehouses and distribution centers and over 30 omni-channels and facilities. The company takes the advice of experts while designing, building, and developing the warehouses and distribution centers. However, the objective is to achieve sustainable growth in the long term and quickly scale.

II-Warehouse Operations

FedEx employs the data-based WMS software solution to efficiently and accurately manage the inventory operations; picking, packing, and sorting. The company efficiently utilizes the warehouse space with operational analysis; the objective is to have limited wasted space for the warehouse. However, some of the main warehouse operations of the company are as follows;

• Return management
• Packing and kitting
• Configuration management
• Quality control and inspection analysis
• Customized labeling

Marketing & Sales of FedEx

I-Advertisement & Slogans

FedEx employs various media channels for running marketing and advertising campaigns for product and brand promotion. Some of the main popular advertisement slogans of the company are as follows;

• “Where Now Meet Next” – 2021
• “We Understand” – 2009
• “Relax, it’s FedEx” – 2008

II-Sponsorships

FedEx has sponsored various mega sporting events and tournaments across the world. They help the company to give significant brand exposure and increase brand awareness. Some of the main events that the company has sponsored over the years are as follows;

• UEFA Champion League
• Heineken Cup
• Orange Bowl Football tournament
• Formula One Teams

Services of FedEx

I-Reverse Logistics

FedEx offers reverse logistics service of delivering the goods back to the company. It allows the company to amplify the customer satisfaction and win their loyalty. The company has made the returning goods process very simple and convenient and the customers could easily refund their money.

Supporting Activities of FedEx

Some of the main supporting activities in the value chain analysis of FedEx supply chain analysis are as follows;

Infrastructure of FedEx

FedEx has established a very large and worldwide infrastructure of warehouses, transportation channels, distribution centers, omni-channels, suppliers, and partner networks. It helps the company to smoothly and efficiently perform the supply chain, transportation, and distribution operations without any disruptions. As a result, the company has established a very large network of loyal customers. 

HRM of FedEx

FedEx has employed over 529000 employees to manage its worldwide transportation business service operations. The human resource management department of the company plays a key role in building and maintaining a diverse workplace environment, providing equal employment opportunities for all, and creating a secure and safe workplace environment.

Technological Development of FedEx

FedEx invests a significant amount of capital resources in acquiring WMS, TMS, and other tracking and database analytical tools and software. Advanced software solutions and tools help the company to efficiently perform its transport operations; easily track the location of goods, and make effective decisions with limited errors.

Procurement of FedEx

FedEx is highly cautious about ethical and sustainable procurement practices. The company makes sure to collaborate and partner up with suppliers and vendors that would comply with the company’s code of conduct and human rights standards.

Conclusion: FedEx Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After a careful study of the value chain analysis of FedEx; we have realized that FedEx is the world’s leading retail transport and delivery service-providing company. If you are learning about the FedEx value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.