Management Information Systems

MIS used in FedEx

Submitted to: Prof. Malathi Sriram

Submitted by:
Group No.7 (SECTION A)
MANOJ KUMAR SA (PGDM NO: 16023)
NIDHI PADMA KUMAR (PGDM NO: 16029)
RISHANT GARG (PGDM NO: 16038)
SHUBHAM GAUTAM (PGDM NO: 16047)
SURABHI MISHRA (PGDM NO: 16051)
Contents
Executive Summary (By Shubham Gautam)..............................................................2
About FedEx (By Nidhi Padmakumar).........................................................................3
FedEx Business Process (By Manoj Kumar SA)............................................................4
Problems faced by FedEx before the implementation of MIS (By Nidhi Padmakumar)5
Some Information Systems Implemented in FedEx (By Surabhi Mishra)....................6
Cosmos (Customer Operations Service Master On-line Systems)............................6
Customer Relationship Management Systems........................................................6
Supply Chain Management System.........................................................................7
Knowledge Management Systems...........................................................................7
Hardware used by FedEx (By Manoj Kumar SA)..........................................................8
Software used by FedEx (By Manoj Kumar SA).........................................................10
Advantages gained after implementing MIS (By Rishant Garg)................................11
Conclusion (By Rishant Garg)...................................................................................12
References................................................................................................................ 13

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 Executive Summary

This report mainly discuss about the Management Information System used in FedEx
Corporation. FedEx Corporation which provides courier delivery services is headquartered at
Memphis, Tennessee. FedEx Corp. was founded in January 1998. The main operation of FedEx
is its overnight shipping services. This report also discusses different services provided by FedEx
which include FedEx Express, FedEx Ground, FedEx Smart Post, FedEx Freight, and FedEx
Trade Networks.
Services provided are followed by Business Process used by FedEx. It starts with the
pickup of the packages from customers and then collected at central hub. This follows the
process of collection of packages from hubs, scanning of barcodes, location identification etc.
Then comes the delivery of the packages with taking the customer satisfaction.
FedEx was facing many problems like lack of efficiency & reliability, increased cost and
the main problem was of the delay in delivery process of the packages.
The report mainly discussed about the information system implemented in FedEx which
include COSMOS (Customer Operations Service Master On-line System) that is a computerized
tracking system, Customer Relationship Management System helps in customer retention and
revenue optimization, Supply Chain Management System and Knowledge Management System.
The hardware used by FedEx include RFID (Radio Frequency Identification), Velcro
Wristband RFID used for the purpose of automatic keyless entry and ignition system,
Microsofts Power Pad and Bluetooth, Digital Pen, Barcode Scanners and Super Tracker. The
software systems of FedEx gather to SAP Business Objects which is specialized in Business
Intelligence (BI), SAP Business Objects Dashboards, SAP business objects web intelligence,
SAP business objects crystal reports, FedEx E-shipping Tools, FedEx ship manager and FedEx
Net Return.
After implementing the MIS in the system FedEx experienced many advantages like
Customer Benefits, Enterprise Benefits, their efficiency and reliability increased and the costs for
the company decreased.
From the report we concluded that Information System not only helped FedEx to rectify
problems but also increased their operational efficiency.

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 About FedEx

FedEx Corporation, courier delivery services is headquartered at Memphis, Tennessee. It

is a multinational company in United States. FedEx Corp. was founded in January 1998. Also an
import or export company. The main operation of FedEx is its overnight shipping service and it
is a pioneer in introducing a system that can track packages and then give updates (real-time) on
package location. This is helpful to track lost packages, if any. This feature is now being imitated
by many other carrier services.
FedEx is a well-organized company. It has operations in various fields, each having its
own version designed by Lindon Leader of Landor Associates, of San Francisco. The Fed in
FedEx is always purple and the Ex comes in a different colour for each division and platinum for
the overall corporation use. The different services include:

FedEx Express : It operates within US. It is the overnight courier service by air done by
FedEx. It is time-definite international service. It operates as the largest in the world when it
comes to civil aircraft fleets and also the largest fleet of wide bodied civil aircrafts. The
freight it carries is much more than any other airline.

FedEx Ground : One of the subsidiaries of FedEx Corporation. They use trucks for
delivery owned by independent owners or contractors who controls the delivery routes and
areas. It offers guaranteed delivery in a day within US and Canada and it saves cost
compared to time-definite FedEx Express. Formerly Roadway Package System (RPS).

FedEx Smart Post: It receives the couriers and parcels from e-commerce and catalog
companies and consolidates them. Then they take the help of United States postal service for
the final delivery.

FedEx Freight: This does the Less than truckload (LTL) and other freight services. For
these LTL deliveries FedEx provides time definite shipments and also within specific dates.

FedEx Trade Networks: They provide freight forwarding services both ocean and air
services, according to the customer requirements. (About Fedex, n.d.)

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 FedEx Business Process

Pickup Process Delivery

Package pickup Collection of Delivery of packages
Scanning for packages from hubs in the destination
dimensions of the Scanning of barcodes Customer
package Location Satisfaction
Volume and weight identification
calculations Sorting on the belt
Sent to hubs conveyor
Sent to the
destination points

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 FedEx business process starts with the pick-up of the packages from customers. After
picking up the packages are scanned for the dimensions. And also the volume and weights of the
shipments are calculated. Further the packages are sent to local hubs. Then the packages are
collected at the central hubs. Then the barcodes in the packages are scanned to find the location
of the packages. Based on the locations, the packages are sorted on the belt conveyor based on
the locations. Then the packages will be sent to the destination hubs. From the destination hubs,
the packages will be delivered to the recipients. (Fedex MIS, n.d.)

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 Problems faced by FedEx before the implementation of MIS

Initially FedEx came out of pressures from mounting inflation and global competition.
These pressures gave rise to greater demands on businesses to expedite deliveries at a low
cost and to improve customer services. FedEx didnt have business problem, rather have
endeavoured to stay ahead of the competition by looking ahead of every stage to meet
customer needs for fast, reliable and affordable overnight services. Lately internet has
provided an inexpensive and accessible platform upon which FedEx has seen further
opportunities to expand its business scope, both geographically and in terms of service
offerings. FedEx is trying to achieve two of its major goals: 100% customer service and 0%
downtime. The main problems faced were

Less efficiency

Redundancies of separate terminals for different transportation carriers.

The evaluation of shipping options and rating information for FedEx and other
carriers were from different touch points.
No automation for document preparation of shipping manifests and customs
documents.
No integration with the host system for seamless information transfer.

Less reliability

Couldnt track where you are in the delivery process.

No technical expert for questions who knows the shipping system.

Increased costs

Couldnt manage the companys shipping expenses easily and accurately.

Employee training was costly.

Delay in Delivery process

During the delivery process he found it difficult to lock the delivery vehicle while
carrying the armload of packages. Also if he misplaces the key, he has to then wait for
the FedEx Centre for a duplicate key. This further delayed the process.

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 Information System Implemented in FedEx

Cosmos (Customer Operations Service Master On-line Systems)

COSMOS (Customer Operations Service Master On-line System) is a computerized

package tracking system that monitors every phase of the delivery cycle at Fed Ex.
FedEx employees constantly put information into COSMOS by several means .Customer
representatives enter shipping information like bar codes or way bill no into COSMOS
through computer terminals, alerting the dispatcher closest to the pick-up or delivery
area. Dispatchers relay pick-up and delivery information to the courier, small digitally
assisted dispatch computer systems found in all courier vans.
Small hand held computers, called Super trackers, are used to scan the progress of the
package so many times from pick-up to delivery. Couriers simply scan the bar code on
every waybill with their Super tracker, at every stage of the delivery process. Super
trackers retain and transmit package information such as places, routes and the type of
service requested by the customers.
Once a courier boy returns to the van, the information is downloaded from the Super
Tracker, which updates the package location in the COSMOS ecosystem. Thus, a
customer can find out at any given time as exactly where his package is and when they
will get delivery, or they call Customer Service or track the package on their own on the
FedEx Web site.
From COSMOS and tracking to service guarantees, the FedEx network is designed to
provide 100% customer satisfaction.

Customer Relationship Management Systems

Customer Management relationship management is used by FedEx to keep customer

satisfied. It also helps in customer retention and revenue optimization. The CRM helps in
keeping track of stock at night without the help of staff supervision needed. Therefore FedEx
started in-night delivery system after implementing the CRM system. The CRM system has
helped FedEx with the following
View all customer transactions, respond confidently to customer calls and emails
Capture important information about customer interactions
Manage tasks and follow-up activities.
Detect missed sales opportunities and to optimize revenue.
Consolidate and integrate customer information from multiple communications channels.
FedEx has also developed a unique in-house system called EMBRACE which provide
customers with management information knowledge needed by people. There is no need for
staff for delivering courier with paper proof thus it also reduces the usage of paper. EMBRACE

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provides real-time electronic proof of delivery, even when stores are shut. It is available in real-
time online 24/7, EMBRACE also gives instant access to delivery information, providing
traceable confirmation as well as total customer certainty.
Supply Chain Management System

The Supply chain management system takes care of the suppliers and vendors of FedEx.
FedEx Office purchases the products and services that are highly unique to their own needs. In
addition to this FedEx offers the widest array of transportation, e-commerce and supply chain
solutions in the world, FedEx Office find and purchases from the companies who also understand
that value and will work with them to optimize their efficiency and collective supply chains to
reduce total costs of ownership. The following work is done by this system.

It represents the total expenses incurred by a company to acquire materials,

Maintain inventory,

Process and fulfill orders,

Manage transportation, deliver to end-customers

Manage information systems throughout the process.

Knowledge Management Systems

FedEx also uses the Knowledge management system to use its experience and expertise
for future endeavors. It helps in
Identifying
Creating
Representing
Distributing and enabling adoption of experiences
Improved performance
Competitive advantage
Innovation
The sharing of Lessons Learned integration and continuous improvement of the
organization are main parts of KMS that FedEx shows the efforts to focus on since it
considers knowledge. Management as one of the strategic asset for the company.
(http://www.fedex.com/ma/about/overview/innovation.html, n.d.)

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 Hardware used by FedEx

The hardware used by FedEx includes the following:

RFID:
RFID stands for Radio Frequency Identification. FedEx started using RFID in the year
1999. RFID helps to automatically retrieve the data wirelessly. RFID tags will be attached to the
shipments. When the shipment enters the connecting hub or any warehouses, all the shipments
will be recognized without the need of opening bags or containers. This data will be updated in
the server using Bluetooth or GPRS system. This enabled the customer to track the exact location
of the shipments. This implementation of RFID later became competitive advantage for FedEx.
Velcro wristband RFID:
FedEx used Velcro wristband RFID transponder for the purpose of automatic keyless
entry and ignition system. Previously if a FedEx delivery man misplaces the key somewhere he
has to wait for the duplicate key from FedEx center. This delayed the delivery process. And also
delivery person found difficulty in locking the doors of the delivery vehicle which carrying
armload of packages. By using this Velcro wristband RFID, this problem has been solved. When
delivery person approaches near the door with this wristband, the door will unlock for five
seconds and after that it will lock automatically. The engines can be started and stopped using the
push buttons. It was made compulsory in the system that the engine will start only after locking
all the doors. This system eliminated the need for key in delivery vans. In this system, a single
transponder can be used to control multiple delivery vans.

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Microsofts PowerPad and Bluetooth:
FedEx uses PowerPad, a data collection device and it is Microsofts windows powered
pocket PC. It uses Bluetooth to send and receive the information. By scanning the package it
uploads the informations such as delivery information, signature etc to FedEx server. This
reduced the need for scanning the packages again and again. This powerpad will also have
wireless connectivity between the printer and mobile computer in the courier delivery vehicle.
This helped FedEx delivery man by providing delivery information. It boosted the efficiency of
operation and also reduced the wastage of paper.

Digital Pen:
FedEx also uses digital pen which consists of wireless transceiver and an infrared camera
which will take the images of users writing patterns. This helped the FedEx to take the hand
written information provided by the customers and transform them into digital information. This
information will be transmitted to the mobile phone via Bluetooth which will be further
transferred to FedEx network using General Packet Radio Service (GPRS). It also provides the

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information regarding the location. Implementation of this system reduced the time for collecting
the information and increased the efficiency of their operations.
Barcode Scanners:
Bar code scanners are used to read the barcode. Fedex uses the bar code on the shipments
in order to easily identify the delivery location, so that the shipments can be sorted according to
their locations. In Fedex, shipments moving in the conveyors are scanned using barcode scanners
and sorted automatically based on the delivery locations. The only limitation is that human
involvement is needed to keep the shipments in a way so that the barcodes will be visible to the
scanners.

Super Tracker:
Super tracker is a hand held device with bar code reader at its tip. It has RF transmitter to
transmit the information captured. (FedEx Corporation, n.d.)

Software used by FedEx

The software used by FedEx includes the following:

SAP Business Objects:

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 SAP Business Objects is specialized in Business Intelligence (BI). It provides solutions
such as planning, reporting, performance management, query and analysis and also it provides
enterprise information system. It includes the following key components:
SAP Business Objects Dashboards:
It is a data visualization software which helps in creating and exporting interactive
dashboards. It creates charts, graphs and buttons based on the data sets.
SAP business objects web intelligence:
It is a tool used for analyzing the data in the warehouse. It helps the managers to take the
future decisions.
SAP business objects crystal reports:
It helps in creating and designing business reports from wide range of data sources.
FedEx E-shipping Tools:
It is a web based shipping application which helps the customers to track their shipments
using their website. It also provide solutions to entire supply chain and selling needs of the
customer.

FedEx ship manager:

It helps the customers or shippers to prepare the shipments, get the transit times and rates
without the need of logging in. It is an online tool. It also helps the customers to schedule the
courier pick up. All the customers needed to do is to get a FedEx account number.
FedEx Net Return:
It is a web based item return management system by FedEx. (Eshipping Tools, n.d.)

Advantages gained after implementing MIS

MIS implementation has being beneficial for all the stakeholders of the company which
includes the company itself and customers also. We will now see the benefits provided by MIS at
different levels.
Customer Benefits
Customer satisfaction increased as the simplicity and speed at which they were able to
access the FedEx transport services was improved exponentially as all of these things was now
available through a single system. The fee-based solutions that has been implemented by FedEx

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has improved its quality and that led to increase in efficiency of a single-source shipping
solutions.
RFID has enabled customers to track their item at all times with its current location
which has brought a great deal of reliability and satisfaction and also increase value addition of
services provided by FedEx.
Enterprise Benefits
RFID has brought many applications even for enterprise like they can track their orders at all
times and see if the drivers are not slacking during their duties hours. They can segregate the
orders by location using RFID which has reduced the human intervention and that in turn has
improved the accuracy and efficiency to provide the quality of services provided by the
company.
With the use of E-business, the organization has seen that there is an expansion in the
turnover, also improvement in the relationship between the company and customers and
in profitability.
There are a few different advantages which resemble it has pulled in new clients and has
enhanced its picture furthermore the notoriety in the market.
The web has been extensively coordinated into the organization's procedures of the
business furthermore to bolster the workers in their day by day exercises.

Increased Efficiency
The redundancies which arrived before due to the separate terminals for different
transportation carriers are also removed due to the streamlined system.
All the options of how to ship and also the rating information was achieved and can be
evaluated by FedEx from the single-access point only.
The documents with respect to the shipping manifest and also the details regarding to the
customers are also automatically generated by the system with the help of RFID
technology.
Greater Reliability
Centralized tracking system has enabled to ensure the reliability of the courier of the
packages as they can be tracked anywhere within the delivery process.
Reduced Costs
We can manage the companys expenses which are related to the shipping more
accurately and easily.
Training cost of the employee can be reduced as they focus more on single shipping
system, after implementation and also after each upgrade. (Fedex Corporation MIS, n.d.)

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 Conclusion

Implementation of Information systems and related things not only helped FedEx to
rectify its problems and also increased its operational efficiency, later it became competitive
advantage for FedEx. It made FedEx a market leader in its business. As a company, FedEx
always used to focus on implementing new technologies. It always used to invest more on
innovations which in turn helped to FedEx to earn more satisfied customers. Fedex had set an
example for other companies stating how a company can benefit from investing in
technology.

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 References
(n.d.). Retrieved from https://www.ukessays.com/essays/information-
technology/examining-the-advancements-of-fedex-systems-information-
technology-essay.php
About Fedex. (n.d.). Retrieved from Fedex.com: http://about.van.fedex.com/
Eshipping Tools. (n.d.). Retrieved from Fedex.com:
http://www.fedex.com/in/ebusiness/eshippingtools.html
FedEx Corporation. (n.d.). Retrieved from weebly.com:
isoncc.weebly.com/uploads/1/0/1/0/10105517/fedex_corporation.pdf
Fedex Corporation MIS. (n.d.). Retrieved from Slideshare.net:
http://www.slideshare.net/aabhas19871/fedex-corporation-mis
Fedex MIS. (n.d.). Retrieved from Slideshare.net:
http://www.slideshare.net/geetasaravate45/fedex-miscase-study
http://www.fedex.com/ma/about/overview/innovation.html. (n.d.).

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