TABLE OF CONTENTS

Sl No. TOPIC PAGE

NO

1) About FedEx

2) Blue Dart

3) The FedEx Supply Chain

4) Transportation And Logistics Management

5) Customer Service in the Supply Chain

Learnings
 FedEx Corporation provides integrated transportation, information, and logistics
solutions through a powerful family of companies that operate independently yet compete
collectively.

The FedEx Family:

FedEx Corporation, a $20-billion global enterprise

FedEx Express, the world's largest express transportation company

FedEx Ground, North America's second-largest provider of ground small-package

delivery offering a new service -- FedEx Home Delivery

FedEx Freight, a leading provider of regional LTL freight services

FedEx Custom Critical, the world's largest surface expedited carrier

FedEx Trade Networks, a high-tech customs broker and trade facilitator

Vision

FedEx Supply Chain Services will be an acknowledged world leader in global

integrated logistics management, supply chain solutions and time-definite
delivery. Our motivated associates will forge mutually profitable partnerships
with our customers using world-class technology and business practices.

In India FedEx follows a V3 strategy:

 VISION ---- To connect 95% of the world GDP in 24-48 hours by continuously
expanding our international flight network. The express transportation of goods
from one corner of the globe to another has become a major imperative in
international commerce. Achieving that goal is what our vision network is all
about.

 VALUE --- To use short and long-haul surface transportation integrated with our
vast air operations. One of the greatest advantage of value strategy is that it helps
us use our assets more efficiently and provide more value to our customer in
terms of cost.

 VIRTUAL --- Virtual strategy is to extend to extend our electronic reach to all
our express customers, enabling them to electronically access markets with little
regard for distance and time. Make FedEx a virtual company, easily accessible to
all our customers and their customers and their customers through system
enhancements
Mission

• Achieve success with highly trained and motivated associates.

• Design, develop, and apply innovative time-definite, global logistics

solutions which improve our customers' competitive positions and exceed
their expectations.

• Aggressively pursue business opportunities to meet and exceed our

earnings and growth objectives.

Values

The culture at FedEx is defined by

• The effectiveness of their communications.

• The empowerment of their people for peak performance.

• Employee pride in performance.

• A safe and rewarding work environment.

• Their mutually rewarding partnerships with customers and suppliers.

• Understanding and valuing diversity.

• Focus on our customers and a passion for service excellence.

• Conducting business to the highest ethical and professional standards.

FedEx supply chain services

FedEx Supply Chain Services designs, develops, and applies transportation management
and e-Logistics solutions to improve inventory visibility, velocity, and speed to market.
Their transportation management service improves transportation processes and can
increase efficiencies. Their e-Logistics group helps customers compete in today's highly
competitive e-Business channels.

The FedEx network is woven around the complex structure of our country through a
HUB and SPOKE system allowing valued customers flexibility for their choice of routing
vendor resourcement, primary warehousing, distribution, secondary warehousing so as to
ensure minimum inventory holding cost providing the customers with a cutting edge over
its competitors.
 BLUE DART

About Blue Dart

Blue Dart Express Ltd., India's premier integrated air express carrier and logistics-
services provider, has been one of the largest Global Service Participants of Federal
Express Corporation, the world's leading air express transportation company, since 1984.
From 1984, Blue Dart represented all FedEx interests, under a principal to principal
arrangement, in India.

Blue Dart-Federal Express Relationship:

Blue Dart and FedEx have determined a new agreement in October 1997 to coincide with
the introduction by FedEx of its first round-the-world flight touching Mumbai, as well as
its direct entry into the country.Under this agreement, Blue Dart is the exclusive provider
of transportation, pickup and delivery, customs and related services for FedEx's
International Priority shipments, as well as the sole preferred consolidator of FedEx
services.The Alliance seeks to leverage the strengths of both organisations for mutual
benefit. While FedEx focuses solely on the development of its international business,
with its link to the vibrant economy of the Sub-Continent, Blue Dart continues to
consolidate its dominant domestic position, and service and enhance its international
customer base as a licensee of FedEx, to support FedEx's international growth. The new
agreement is designed to stimulate the development of India's international express
market by combining the competitive advantages of FedEx's global reach with Blue
Dart's domestic coverage to increase the market share of both companies.

As a technology leader in the business of supply-chain management in the country, Blue

Dart Express Limited recognised the far-reaching scope of the internet in 1996, and has
been exploring web-based solutions to extend the range of services available to its
customers and integrate them into its core products. It has evolved an e-strategy.This e-
strategy encompasses E-Solutions to deliver additional process efficiencies to business by
allowing them access to Blue Dart's e-shipping tools and integration with its e-business
tools. An individual solution is available for each business, big or small, transacting off
the internet or on the internet, and ranging from a stand-alone to a fully integrated one
The basic tracking solution will enable Blue Dart's customers to track their shipments,
through single or multiple waybills, on-line. Customers can check the status of their
shipments using a waybill number or a reference number. A mail-based solution will
allow the customers to query status of their shipments using e-mail.Registered customers
of Blue Dart can make advanced queries on the status of their shipments, and can keep
track of them for up to 45 days on-line. They can filter their queries by date range, origin,
destination and service, and sort the results on-line. Registered customers can download
the entire waybill tracking data - schedule the download, and select the frequency and the
data to be downloaded. These customers can also generate and download various reports
customised to meet their individual needs.

E-Shipping Tools

These tools are convenient aids to support your shipping management processes:

TrackDartTM:
Track the status of your shipment by using the TrackDart TM box, which is available on the
upper left panel of every page on our website. You may track shipments sent on Blue
Dart services within India or to Nepal, Bangladesh or Bhutan. You may also track
international shipments sent on Federal Express to/from India. Shipments under single or
multiple waybills may be tracked using either the waybill number or the reference
number given at the time of shipping.

MailDartTM :
You may either use the Waybill Number or the Reference Number to track the status of
your shipments. This feature helps you to track Single or Multiple shipments.
To track the status of your shipments by Waybill Number enter the waybill numbers
either in `Subject' or in the text of the mail, each Waybill number seperated by a comma.
To track the status of your shipments by Reference/Order Number. Enter the
reference/order numbers in `Subject' of the mail, each reference or order number
seperated by a comma. Another powerful feature in the MailDart is the Intimate Me
Option. Incase you need to know the status of the shipment upon delivery you only have
to send a mail to intimateme@bluedart.com with Single or Multiple Waybill numbers in
`Subject' or in the text of the mail, each Waybill number seperated by a comma.You will
receive an automated reply giving you a Status Update of the shipment(s) upon delivery.

LocationFinder:
Find the service locations of Blue Dart and the Blue Dart counter or franchisee located
closest to you. You may search by city, street name or pin code to find one of over
11,558 locations serviced in India, or in 211 countries worldwide.

TransitTimeFinder:
Check the transit times for your domestic and international shipments, and for the various
services offered by Blue Dart to help you identify the service that meets your
requirements.

PriceFinder:
Calculate your shipping costs for your domestic and international shipments by using our
Price Finder.

WaybillGeneration:
The Online Waybill generation tool helps the credit customer to generate a waybill for a
consignment. The user has to enter the details of the consignment and the waybill will be
generated in a PDF format.Another powerful feature in Waybill Generation is the
Address Book. This feature comes with the online waybill generation module. The
Address Book can be accessed by all credit customers of Blue Dart. You can create a new
address list and modify or delete the addresses at any point of time.

COSMATII:
COSMAT II (Computerised On-line System for Management, Accounting and Tracking)
is a complete ERP system indigenously developed by Blue Dart. It interfaces with the
Human Resources Management, Financial Management, Purchase, Sales Monitoring
Executive Information and CRM systems.COSMAT II was constructed in 4 major
modules to cover all the complex processes of the entire organisation. To set up this large
application, various media were used (leased lines, VSAT, Microwave links) on our very
own WAN for effective data transfer between all locations. Barcodes and Scanners were
used for speedier operations. COSMAT II enables easy access to the database over a
wide area network, and ensures reliable information and feedback even in areas that are
afflicted by poor telecom services. All the powerful web-based tools, including
TrackDart, interface with COSMAT II to provide real-time response to customer
requirements. COSMAT II is an evolving system, upgraded continuously, to deliver
value to the customer and make operations easier, more secure and manageable.

SMARTTM:
SMART (Space Management Allocation Reservation and Tracking), is an inhouse
developed state-of-the-art technology system, which allows real-time space and revenue
management on the Blue Dart Aviation network. It ensures that the aircraft is filled
profitably, and that all customers with space confirmed on the aircraft have the assurance
that their packages would travel.SMART dovetails into COSMAT II leveraging on the
infrastructural strength of the system. This ensures that packages booked on SMART are
picked, moved on the network and tracked until delivery.SMART is built on Oracle
technologies, with the database housed on Oracle 8i (Release 2). This database is hosted
on a Sun Enterprise 3500 server, a fully redundant, zero reboot system.
ShipDartTM:
ShipDart is a Blue Dart proprietary solution especially created for the convenience of
regular customers. ShipDart enables user control over the entire shipping and tracking
processes. ShipDart needs to be installed at the customers premises in order to interface
with their own system for the pre-shipping and post-tracking activities, thereby playing a
major role in bridging the existing gap in any package movement. A set of Master Files
which controls the ShipDart system has to be downloaded from the site.

CustomisedSolutions:
Blue Dart has delivered customised solutions to various industry segments such as
Finance, Pharmaceutical, Consumer Durables and Information Technology, among
others. These solutions integrate closely with the legacy systems of the business and
enable them to accelerate their processes and provide them with effective MIS.

E-Business Tools

These tools may be efficiently integrated with your systems to provide you with a
convenient and cost-effective solution to your shipping requirements.

Blue Dart has been the only Indian Air Express Company that has invested extensively in
Technology infrastructure to create differentiated delivery capabilities, quality services
and customised solutions for the customer.

InternetDartTM:
Track on-line the status update of your shipments sent over the last 45 days. You may
track by a range of dates, origin, destination, delivered or undelivered shipments or
service used, on-line. You may generate a series of reports, at a pre-determined
frequency, and sort the results on-line.For on-line queries and reports: on providing the
input of range of pickup dates, origin, destination and services used, you can check any of
the following, on-line:

• Waybill details and status of all shipments sent during a given period
• Details of all delivered shipments

• Status of all undelivered shipments

• Details of all RTO (Return to Origin) shipments

• Details of all Re-directed shipments

ShopTrackTM:
ShopTrackTM is an API (Applications Program Interface) designed specifically to support
and enhance the services provided by a portal or any e-business. Research indicated that,
while etailers provided an entire gamut of product services and information, eshoppers
invariably had to leave the website or use manual means to track their purchases. The
result - less eyeball time on their pages. Portals that sought to resolve this dilemma were
faced with the unattractive alternative of database maintenance and call centres.
ShopTrackTM provides an effortless, customised solution. Customers no longer have to
leave the Portal site to track their purchases. They just need to enter the order-number of
their purchase and the shipping and delivery details are displayed on the same page. The
Portal can decide how to display the data elements and may even store them in their
database. ShopTrackTM is another time and cost-saving tool created to arm Blue Dart's
customers with a competitive edge.

PackTrackTMs:
PackTrackTM is an API (Applications Program Interface) designed for any client involved
in logistics, distribution and inventory control. It has been designed to streamline and
integrate shipping processes. PackTrackTM can be integrated into the client's systems and
enables him to keep track of the entire distribution status of all his customers. It is simple,
easy-to-use and can be easily integrated with any windows-based application or any Java
compliant machine. Queries are fetched immediately from Blue Dart's database,
providing a seamless service for the client and his customers, and bringing the entire
chain within his domain. The client may store this data in his database, providing him
with an effective CRM tool.These e-Business tools, the first of their kind in the country,
bring increased efficiencies to most B2C, B2B and C2C transactions.
Both ShopTrackTM and PackTrackTM provide the following :

 On-line, real-time status details of the waybill number

 On-line, real-time status details of all the waybills linked to an order number

 Results in either XML, TEXT or HTML formats

 Supports JSP & ASP

MobileDartTM:
MobileDartTM - WAP works on any mobile phone or device which supports Wireless
Application Protocol. Using MobileDart-WAP, the customer can check the current status
of his shipments on-line by entering the waybill number. In the case of an undelivered
shipment, he can choose to receive delivery details by email or SMS. The customer can
also access the Location Finder which provides details about all locations service by Blue
Dart, based on a pincode. Information about all the Service product offerings as well as
the company is also available on the WAP site (wap.bluedart.com). This enables the
customer to make a shipping decision on the run.MobileDartTM - SMS works on any
mobile phone or device which supports sending email over SMS (Short Messaging
Service). This service provides two tracking features - current status of shipments
forwarded, and automated intimation on delivery of the shipment. To know the current
status of his shipment, all the customer has to do is to send a message to t@bluedart.com,
followed by the waybill number. MobileDart-SMS will respond with the current status
details. To receive an automated advice when a shipment is delivered, the customer just
sends a message to i@bluedart.com followed by the waybill number. An intimation will
be received by the customer as soon as the shipment is delivered.

The country's only express airline with a fleet of three Boeing 737s ensured that packages
were flown to their destinations overnight. Another tremendous advantage was that the
individual size of packages that could be carried multiplied manifold.
Retrieval of signed delivery records posed the industry's most intriguing problem. Blue
Dart was quick to understand this requirement and put in place a 100% retrieval system.

Blue Dart not only handles large volumes and oversize packages overnight - it also
provides the industry with status of their shipments and retrieves such records as are
necessary for billing. The entire cycle has been considerably shortened, enabling the
industry to achieve healthy bottomlines.

State-of-the-art Technology, indigenously developed, for Track and Trace, MIS, ERP,
Customer Service, Space Control and Reservations.

Blue Dart Aviation, our express airline, to support our time-definite morning deliveries
through night freighter flight operations.

A countrywide Surface network to complement our air services.

Warehouses at 14 locations across the country as well as bonded warehouses at the 4

major metros of Kolkata, Delhi, Mumbai, and Chennai.

ISO 9001 countrywide certification by Lloyd's Register Quality Assurance for our entire
operations, products and services.
Ecommerce B2B and B2C initiatives including partnering with some of the prime portals
in the country.

Our Competitive Advantage lies in:

Our vast and unparalleled Domestic Network:

Linked by some of the most advanced communications systems and positioned to

offer a consistent, premium, standardized quality of service.

Our Customs and Regulatory expertise A spectrum of services to provide

customized solutions:

.We are the only express carrier in the country today which offers an entire range
of services that extend from a document to a charter-load of shipments. Our
services are relentlessly monitored to deliver a net service level of 99.95%.

We have a dedicated team of specialists who provide the expertise for customs as
well as regulatory clearances at all States within the country, to support seamless
service to the customer.

Our Technology:

Designed to enhance the reliability of our operations and process efficiency, and
add value to the customer through time and cost savings.

Our Air Network:

The only one of its kind in the country today, that is focused on carriage of
packages as its prime business, rather than as a by-product of a passenger airline.
Our express airline is self-sustaining, with its own bonded warehouses, ground
handling and maintenance capability.

Our financial credibility :

Fitch Rating India Pvt. Ltd. has assigned the highest "Ind D-1+" (Ind D One Plus)
rating for our commercial paper programme of Rs. 15 crores.

Our Peopleforce:

Committed, diverse and 4,010 strong, are our most valued asset. All our
achievements have been possible because we have a team who believes in
themselves and their company, a team with a winning attitude. We are a learning
organization, we value self-development, and most of our managers are
homegrown.
 THE FEDEX SUPPLY CHAIN

A supply chain is a network of sub-suppliers, suppliers, internal operations, trade

customers, retail customers, and end users. Supply chain management is a loop that starts
with the customer and ends with the customer. It requires looking at your business as one
continuous process that absorbs such traditionally distinct functions as forecasting,
purchasing, manufacturing, distribution and sales, and marketing into a continuous flow
of business interaction. Under this the functional ‘stove pipes’ of corporate activity are
replaced by departments structured as a pipeline that stretches between a company’s
suppliers and its customers.

Integrated supply chain management is a process-oriented, integrated approach to

procuring, producing and delivering products and services to customers. ISCM has a
broad scope that includes sub-suppliers, internal operations, trade customers, retail
customers and end users. ISCM covers the management of material, information and
funds flow.

Supply chain management is the logical progression of developments in logistics

management. Physical distribution management integrated two functions, providing
inventory-reduction benefits from the use of faster, more frequent and especially, more
reliable transportation.

Second phase in SCM’s development, the logistics stage saw the addition of the
manufacturing, procurement and order management functions. This was aided by
electronic data interchange, worldwide communications, and the growing availability of
computers to store data and perform analyses.
The third and current stage is the integrated supply chain management stage. To the
lengthening chain of functions being integrated, suppliers at one end and customers at the
other have been added. This has become a seven-function supply chain, vastly more
complex than the two-functions physical distribution chain. To handle this complexity,
we rely on electronic data, electronic funds transfer, higher bandwidth communications,
and computerized decision support systems for planning and for execution. Training is a
key component too.

The next phase of supply chain management, super supply chain management for want of
a better term will incorporate more functions such as product development, marketing
and customer service. It will be enabled by even more advanced communications, better
and more user-friendly computerized decision support systems and increased training.
 Factors shaping supply chain management

From the many factors potentially involved,it is believed that six business and economic
forces will most impact future supply chain management.These include the three external
factors:consumer demands,globalisation and information/communication.Three
additional topics that will be critical to future supply chain design:competition,regulation
and environmental concerns.Though other factors,for example, organized labour and
transportation technology may play a role they will be secondary in defining supply chain
management’s future.

FedEx in India has five flights a week coming to its Mumbai gateway (no flights on
weekends).These flights come from the eastern hub and the western hub of the FedEx
corporation.

In India the FedEx corporation’s activities are governed by the DGCA rules (which
requires a minimum cooling period for 24 hours for unaccompanied goods on flights,
quota restrictions on the movement of certain goods within the country, transshipment
not allowed because of custom laws etc.) Using its alliance with Blue Dart, the
compliance aspect is left to Blue Dart to fulfill.

FedEx purchases from suppliers in two primary ways:

• Centralised purchasing--- a process with contract/business agreement formats

executed by supply chain specialists at headquarters for the various divisions
within FedEx. Centralised purchasing is most often used for high dollar value
goods and services.

• Decentralised purchasing--- a process at regional and local levels throughout

FedEx all over the world. Decentralised purchasing is generally used for readily
consumable commodities of small dollar value.
If we look at the supply chain of Fed Ex in India we see that their suppliers are

Indian Oil for providing fuel for its aircrafts which lands in Mumbai.

Khambatta Associates for doing all the ground handling work

Jinnah & Associates for custom clearance.

Stationery ( memos,notepadsetc) are bought from local suppliers

Advertising ,PR and direct marketing functions are outsourced to various agencies.

Blue Dart handles collection,distribution ,transportation and logistics in the country for
FedEx

Software supplied by FedEx,USA.developed inhouse.

The customers of FedEx in India are

Leather exporters

Garments exporters

Brass exporters

Marine products exporters

Gems and jewellery exporters , and

Other exporters of the top ten export items

 Transportation and Logistics Management

Transportation choices in the supply chain

Transportation is the linkage process in logistics and often consumes much of the
resources provided to the logistics function. It once dominated the distribution activity
but for most companies it is now integrated into an overall activity. There are three
factors that need to be considered. Operational factors include customer, environmental,
product and company characteristics. The choice of transport mode is influenced by load
size, density, value, competitive necessity and cost structures. Channel strategy
considerations include the identification of available channels and the interfaces within
each channel.

Transportation with facilities creates time utility value in the supply chain. The
extent of this will be part of the decision making process. Clearly, there are a number of
options available: the decision on which one to use will be based upon a number of
factors. Transportation also creates place utility value by delivering product to locations
that are convenient for customers.

Transportation accounts for the largest resource commitment in the logistics activity,
therefore its relative cost/benefit profile must be established within the context of the
level of customer satisfaction that is being set as an objective. There are a number of
interface areas and therefore decisions shared by transportation. These should be explored
by first identifying the areas of flexibility and inflexibility of the decisions and most
importantly that of the customer service objectives. The decisions influenced by
transportation considerations include:

Customer communications
Market coverage

Sourcing decisions

Processing/manufacturing

Customer service decisions.

There are five factors which should be considered in the choice of transportation

o Company characteristics and philosophy-- These are important and

concern the company’s marketing, financial and operations strategies

o Market structures-- are important considerations. There are two factors:

competitive structure and the geographical structure or territorial
considerations. In fiercely competitive markets delivery may be one of the
key factors influencing customers selection of suppliers.

o Product characteristics-- to be considered are weight, size and shape,

robustness, shelf life, potential danger, value and special characteristics,
which may require expensive handling services and equipments.

o Customer characteristics-- have an impact on profitability. Often it is

those characteristics which may influence delivery costs that are important
as to whether or not a customer is profitable to the business.

o Environmental issues-- can influence a transport mode decision in a

number of ways. In its broadest scope environment can be taken to include
government and its influence on transport policy.

The concept of trade-off possibilities and potential for overall costs is important
within the transport decision. There are three that should be considered.
 Horizontal Trade-offs--occur within and between the different transport modes,
which could be selected to perform the same task, such as air versus sea, or road
versus rail.

Vertical trade-offs--Occur where a change takes place in a transport activity and

offers a greater benefit in another area of the logistics function or the organization,
such as markedly improved productivity due to an infrastructure development.

Lateral trade-offs--occur where transport costs can be weighted against lower costs
in other areas. Using express freight services may increase the freight cost but reduce
the need for distribution centers or high inventory building.

FedEx combines people and technology to optimize cost and service. Their
transportation management service combines sophisticated information
technology with human resources to improve the inbound and outbound
transportation processes of their customers. Their service simplifies carrier
selection, improves logistics management, and offers cost savings opportunities.
They streamline transportation management by providing a single point of
contact for all of a customer's shipment and delivery needs. A team of dedicated
coordinators is assigned to each account. Clients order service via electronic
data interchange, the Internet, phone, or fax. They identify the carrier that will
provide the lowest cost and best service for a customer's shipment. Then, a
coordinator alerts the selected carrier and dispatches a vehicle. The result is a
simplified, cost-effective process for managing transportation and inventory
carrying costs.

Here's what your company can expect from their transportation management service:
 • Transportation Savings. As a result of their carrier network and superior
technology, they offer transportation savings opportunities to their
customers.

• Discipline & Control. They identify delivery dates; then, they determine
the right mode of transportation for each shipment. In addition, they audit
carrier compliance to their customers' specifications.

• Convenience. They audit your freight bills and allocate charges to the
appropriate accounting code within your organization. In addition, they
offer the opportunity to reduce administration costs through electronic,
paperless invoices.

• Information. They capture complete data about your company's

shipments and provide useful management reports to further improve your
transportation process.

Integrated Logistics

Increase inventory visibility and velocity with integrated logistics.They combine

knowledge and technology to integrate transportation management service with:

• order management

• fulfillment

• kitting and parts sequencing

• supply chain consulting and design

• returns management

Their customers can benefit from improved operating efficiencies, increased flexibility,
and improved inventory visibility and velocity.
e-Logistics
The components of FedEx e-Logistics (web enablement fulfillment, returns
management) can be implemented individually to address the specific needs of supply
chains. They can also be configured in a number of ways to create an integrated solution
that works hard to speed entry into the digital marketplace, enhance inventory visibility
and velocity, and improve cutomer service and relationship management. From a simple
channel to a complex supply chain. From small e-tailers to manufacturing suppliers. The
flexible, scalable, and configurable FedEx e-Logistics package can help you
compete.and win.

Enablement

he front-end of your e-commerce operation is a critical component of your online

channel. Many companies choose an outside vendor for creating their web sites, only to
find they deliver partially. Often, the firm is ultimately focused on the look-and-feel,
brand-building aspects of the site, and ignores the potential for optimizing the customer’s
experience and building loyalty. The Enablement component of FedEx e-Logistics
includes:

• Customer Relationship Tools that can provide customer interaction

histories. This valuable information can easily be transformed into
powerful, personalized sales programs.

• On-Line Inventory and Order Information — access that can tell customers
if an item is out-of-stock and suggest an alternative.

• 24 x 7 Customer Support that can help close sales with customers.

Current technologies include pop-up chat windows, e-mail, and Internet

• voice solutions.
E-Fulfillment

A sale is a promise. A well-run fulfillment operation is how you keep that promise.
Internet operations that have withstood the test of time are the ones that have backed up
superior front-end interfaces with equal — if not stronger — back-end fulfillment
infrastructure. FedEx e-Logistics offers eFulfillment solutions that include:

• Distributed National Warehouse Network that can provide a fast,

flexible, and cost-efficient alternative to company-operated warehouses.

• Integrated Information Systems that can allow high-volume picking and

packing with maximum speed accuracy.

• Customer Service Support Networks that can ensure your customers have
someone to talk to about their orders 24 hours a day, seven days a week.

• Flexible and Scalable Structure, which means your solution can be

adjusted to meet specific needs.
 CUSTOMER SERVICE IN THE SUPPLY CHAIN

Efficient Consumer Response refers to the situation that makes the consumer the hero by
providing better service to customers at lower cost, fewer stockouts and new products
they want. Consumers will get a better deal overall. All this is done through control of
information and product form the point of manufacturing to the point of sale, with the
intent of eliminating waste and reducing cost cross an entire distribution pipeline. With
ECR the entire pipeline is driven by scanned data at the point of sale. Replenishment
orders are communicated via EDI to direct store delivery to retail distribution centers to
wholesaler / distributor and to the manufacturers.

This ensures that the right amount of product is delivered in a timely fashion, eliminating
unnecessary inventory in the pipeline, eliminating stock outs and also eliminating the
need for each pipeline participant to conduct its own forecast. In essence, ECR makes it
possible for participants in a distribution pipeline to substitute information for inventory.
The benefits to them are increased product velocity and the competitive benefits of
significantly lower costs.

 In Delhi, FedEx has a 24 hour call center (6285911) wherein the customers can
call and make an order for pickup and delivery. FedEx assures a maximum 1 hour
response time for pick up. The customer is expected to package the goods to be
sent himself.

 Also after the pick up has taken place, a one-hour time for doing the necessary
paperwork is required.
  Following this a maximum of 6 hours processing time is needed at the airport for
bagging, tagging, foreign exchange remittance, security check, clearance, etc.

Thus keeping in mind the time for departure of flight and all this time required, FedEx
works backward to ensure that the product is picked and delivered on time.

 For achieving this FedEx has a call cutoff time after which they stop
taking calls for that particular day

 They have a office cut off time after which paper work by the office is not
done.

 And they have at ramp cutoff time after which a package is not taken to
the airport(this is the time required to balance the aircraft and to secure the
goods to it.)

However the adjustments to these rules can be made depending on the proximity of the
customers to the office or his volunteering to drop off the package at the airport, etc.,

FedEx has segmented its customers by

 By analysing large scale databases available with Blue Dart and the various
export promotion councils.

 By segmenting Businesses based on their industry of operation and design of their

supply Chains.

 On the basis of the customer service needs in the Asia Pacific region and the
inputs required for it.

FedEx has certain service quality standards and levels laid\d down and these are
strictly adhered to. These are the net service levels(NSL) and the service quality index.
(SQI). Exceptions to this rule are followed only in the case of acts of God / nature beyond
the control of man. The various “ perfect order” busters are:

right day late

wrong day late

partial delivery

inner content damaged

goods lost, etc.

Depending on the gravity of the act, certain points of non- conformance are deducted for
each of these busters. Every unit of FedEx has been allowed a certain maximum tolerance
limit for non-conformance within a stipulated time period beyond which the unit is
penalized for non-conformance.

FedEx holds internal meets to measure and constantly upgrade its service levels. For this
it has appointed a customer advisory board that keeps receiving feedback from its
customers. Also FedEx sometimes out sources its customer’s satisfaction survey to an
agency or to an anonymous freelancer to carry out the survey without biasing the
customers towards the FedEx name.

The FedEx Transportation management service combines sophisticated information

management technology with human resources to improve the outbound and inbound
transportation processes of t s customers. Their service simplifies carrier selection,
improves logistics management and offers cost savings opportunities. They streamline
transportation management by providing a single point of contact for all its customer’s
shipment and delivery needs. A team of dedicated coordinators is assigned to each
account . Clients order service via EDI, the internet, phone or Fax.. The FedEx identifies
the carrier that will provide the lowest cost and the best service for a customer’s
shipment. Then a coordinator alerts the selected carrier and dispatches a vehicle. The
result is a simplified, cost effective process for managing transportation and inventory
carrying costs. FedEx audits carrier compliance to their customer’s specification.

Returns Management

Many companies are in denial about returns. Some studies show that return rates can be
as high as one out of three products in some industries, and that can radically impact the
bottom line. Commitments to customer service and sound inventory management require
a plan for retrieving, monitoring, and processing returns with minimal customer
inconvenience and inventory depreciation. FedEx e-Logistics offers solutions that
include

• Automated Returns Shipping Labels with a bar-coded Returns

Management Authorization (RMA) number for automated sorting of
returned packages.

• Online Tracking for real-time monitoring of the returned shipment’s

location.

• Multiple options for returns handling flexibility, including: pickup at

customer location or drop-off at multiple access points, and courier
generated shipping labels or customer-generated labels.

Customers are demanding more from you. And key stakeholders are counting on you to
protect your company’s financial and brand equity.
Information Technology:

FedEx is now one of the best positioned companies to assist its

The tracking technologies pioneered by FedEx have dramatically improved the amount of
data that can be transferred and the success at which data are accurately collected. These
developments--- creating the ability to get real time feedback about the movement of
goods from raw materials stage to the point of final sale--- have served as a critical
foundation for the implementation of ‘just in time’ manufacturing, supply chain
management and other business models that address the productivity challenges
businesses have faced for years

Consulting

We offer both strategic and tactical supply chain consulting service.

With a staff of experts in supply chain analysis and design, we offer supply chain
network and process design consulting services, backed by tactical and operational
services. The right mix of strategic and tactical service can lower costs and improve
service for our customers.

Our consulting service begins with an analysis of current supply chain processes. We
define the scope of a customer's needs, map the customer's existing supply chain, and
analyze current supply chain data.

Next, we compare existing supply chain performance against available industry data.
Benchmarking data helps us model various supply chain scenarios and identify
opportunities for improvement.

Finally, we help customers understand alternatives and suggest an optimal

supply chain solution.
 LEARNINGS

1) One of the most important lessons learnt while doing this course in general and
the real life project in particular is that for any business, customer is the most
important component and the very reason for existence for the business. But most
companies tend to forget it. Proper Supply Chain practices help in serving the
customer better and more efficiently with huge cost savings for the company
which ultimately translate into operational profit for the company.

2) There is a lot of difference between the way a world class company like FedEx
operates and the way other companies operate. Their processes are more or less
directed towards customer satisfaction and the company goes out of the way in
trying to satisfy its customer needs wherever it is necessary.

3) FedEx undertakes Customer Relationship Management programmes and it pays

back because they have got very loyal customers which give them business
continuously year after year. All through this project we have learned that this is
one of the most important things for companies to follow because as someone
rightly said that the cost of acquiring one customer is much more than the cost of
retaining a customer. So this saying was reinforced in our minds looking at the
world-class customer service levels that FedEx provides.

4) Just keeping up to its promises is not enough for a company. It must constantly
innovate and develop new products and means to satisfy its customers. To be
ahead in this dimension FedEx has employed a strong force of 5000 full time
software developers. Also it constantly advertises through associating itself with
occasions that are synchronous with its mission i.e. The Formula One Racing