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Merging eCommerce
and the Supply Chain
eCommerce and
the Supply Chain
Presented by
Brett Buckhold
Integrated Technology Consultant
FedEx e Supply Chain Services
CONFIDENTIAL
eCommerce
Agenda
Merging eCommerce
and the Supply Chain
CONFIDENTIAL
eCommerce
Merging eCommerce
and the Supply Chain
FedEx Corporation
1 Overview
CONFIDENTIAL
Who is FedEx
eCommerce Corporation?
Merging eCommerce
and the Supply Chain
Headquarters:
Memphis, Tennessee
FedEx Corporation
Overview
A Response to the
Marketplace Small-package ground
delivery Tower Group International
Headquarters: Custom brokerage/consulting
Case Study Examples Pittsburgh, Pennsylvania
Summary
CONFIDENTIAL
FedEx Corporation
eCommerce Provides...
Merging eCommerce
and the Supply Chain
FedEx Corporation
Overview
Summary
CONFIDENTIAL
eCommerce
Merging eCommerce
and the Supply Chain
A Networked
2 Economy - Key
Business Trends
CONFIDENTIAL
Key Business Trends
eCommerce
Merging eCommerce
and the Supply Chain
CONFIDENTIAL
Key Business Trends
eCommerce
Merging eCommerce
and the Supply Chain
FedEx Corporation
Fast, Global Reach
Overview
CONFIDENTIAL
Key Business Trends
eCommerce
Merging eCommerce
and the Supply Chain
Speeding the Supply Chain
CONFIDENTIAL
Key Business Trends
eCommerce
Merging eCommerce
and the Supply Chain
A Response to the
• Convenience, accessibility, connectivity,
Marketplace and reliability are the prerequisites of
Case Study Examples conducting business electronically
Summary
CONFIDENTIAL
eCommerce
Merging eCommerce
and the Supply Chain
FedEx’s eSupply
3 Chain Perspective
CONFIDENTIAL
eSupply Chain Management
eCommerce
Merging eCommerce What is it?
and the Supply Chain
Summary
CONFIDENTIAL chain
eSupply Chain Management
eCommerce
Merging eCommerce What is the value?
and the Supply Chain
CONFIDENTIAL
eCommerce
Merging eCommerce
and the Supply Chain
Response to the
4 Marketplace
CONFIDENTIAL
FedEx eSupply Chain Approach
eCommerce
Merging eCommerce
and the Supply Chain
FedEx Corporation
Monitor
Monitor and
and
Overview Manage
Manage
A Networked Economy (Key Service
Service Recovery
Recovery
Business Trends)
Proactive
Proactive
FedEx’s eSupply Chain Reporting
Reporting
Perspective
CONFIDENTIAL
FedEx eSupply Chain Approach
eCommerce
Merging eCommerce Plan
and the Supply Chain
FedEx Corporation
• Two approaches
Overview
• Integration of planning software tools with
A Networked Economy (Key
Business Trends) visibility
FedEx’s eSupply Chain • Collaborative planning applications and
Perspective
services for mid-market companies
A Response to the
Marketplace • Need addressed
Case Study Examples • To balance supply and demand
Summary
• Value
• Planning collaboration results in more
demand-responsive, accurate forecasts and
production schedules (this improves order fill
rate, delivery performance, and reduces
inventory)
©2000 FedEx Corporation - Briefing at Annual 16
NDIA Conference
CONFIDENTIAL
FedEx eSupply Chain Approach
eCommerce
Merging eCommerce Orchestrate and Optimize
and the Supply Chain
• The ability to time-phase the express and non-express
distribution of products and orders on a global basis.
FedEx Corporation “The right product at the right place at the right time.”
Overview
CONFIDENTIAL
eCommerce
Merging eCommerce
and the Supply Chain
Case Study
5 Examples
CONFIDENTIAL
How is the customer using eCommerce?
eCommerce
Merging eCommerce EDI - INT
and the Supply Chain
Before
Customer
• Eliminates approximately 40% of the
tracing calls received by customer
each day (13,000 total - all carriers)
Benefits
• Reduces FedEx customer
Corporation
KPMG - FedEx
Alliance Recap Customer service calls
FedEx
Service • Improved asset utilization
FedEx Corporation (FedExNet)
Overview • Breathes life into FedEx synergistic
value proposition
Worldwide Services
Market Approach
After
FedEx
Partnering for FedEx
Ground Viking
Success Express
Next Steps
Web Page
Solution/Challenge
Q&A
• Enable customers to trace orders from
inception to delivery via customer web ECXpert
ECXpert
page Encryption
Encryption
Customer
Before • Growth without additional
infrastructure
• Inventories cut
Benefits
2 Component 1
DC
• Cash flow accelerated
5
• Unique (turnkey) replicable
Corporation
3
4 1
solution
FedEx
Customer
• Consultation fees
• Incremental transportation volume
After
Total days in transit and awaiting 22
installation = 24 5
3
Component 1
1
Solution/Challenge
4
• Reduce global inventory Customer
• Reduce circuitous shipments and
transit miles
• Global merge
©2000 FedEx Corporation - Briefing at Annual 21
NDIA Conference
Total days in transit and awaiting installation = 5
CONFIDENTIAL
FedEx Solution Engine
eCommerce
Merging eCommerce
and the Supply Chain
Information
Business Trends) Services
SAP
FedEx’s eSupply Chain eSCS
Perspective
A Response to the
Marketplace
CONFIDENTIAL
eCommerce
Merging eCommerce
and the Supply Chain
6 Questions
Thank
You
CONFIDENTIAL