Institute of Business Administration, Jahangirnagar University

MEMO

To: Mohammad Anisur Rahman, Assistant Professor

From: Group A (Md. Rakib Jobayer, Id: 201203020; Md. Hosniwat Khadem,Id: 201202011;
MD. Mofizer Rahman, Id: 201202046; Muntasir Munim Chowdhury, Id: 201201110; Md.
Rasel Miah -201201028)
Date: January 31, 2013
Subject: Case on How FedEx Works: Enterprise Systems
Question-1: List the business processes displayed in the video.

As displayed in the video, first, a FedEx agent picks up a package and scans it, entering it
into the system under a unique identification number. It is then transferred into a hub, or
sorting center, via a truck containing other similar packages. Once it reaches the nearest
sorting center, which are over two football fields long and have everywhere from five
hundred to a thousand workers, the packages are stored via a system on conveyor belt. FedEx
uses several types of technology to sort the packages it ships. A dimensional scanner gets the
length, width, height and weight of packages to determine their size and eventual cost of
shipping. Another multidimensional scanner reads the barcode from any location on the
package except the bottom. Then, paddles nudge the packages onto different slides depending
on the eventual destination. Some packages require manual sorting instead of this automated
method. Once the packages have been sorted, they are placed into boxes together. The boxes
are shaped in such a way that they will fit into a plane with maximum efficiency. A FedEx air
control center coordinates the arrival of trucks and monitors airport and airplane conditions.
Once the planes take off, travel and reach their destination, a FedEx courier delivers the
package by hand, and scans again to signify the completion of the transaction.

Question-2: List the types of information systems shown in the video. Can you describe
how systems that were not shown might be used at FedEx?

Transaction Processing Systems in the form of the FedEx Sorting System that generates data
about each package's weight, width, length, volume, destination, etc. Management
Information Systems and Decision Support Systems in the FedEx Control Center that serve
the middle managers in this center and help them coordinates the arrival of trucks and
monitors airport and airplane conditions based on data provided from TPS to make sure that
they made the appropriate routing and each package goes to its right destination.

The type of information systems that was not shown in the video is the Executive Support
System. Executive Support System (ESS) is a reporting tool and might be used by FedEx by
allowing it to turn the data provided from the TPS and MIS into useful summarized reports.
These reports can be used by executive level managers for quick access to reports coming
from all FedEx levels and departments such as billing, cost accounting, staffing, scheduling,
and more. In addition to providing quick access to organized data from departments, some
Executive Support System tools also might provide analysis tools that predict a series of
performance outcomes over time using the input data. This type of ESS is useful to
executives as it provides possible outcomes and quick reference to statistics and numbers
needed for decision-making.
Question-3: The system displayed in the video is an enterprise system. Why is this true?
Explain your answer.
The FedEx system displayed in the video is an enterprise system because it permits the
integration of data generated and held in FedEx system, and permits the integration of the
computer systems that run all phases of a FedEx's operations to facilitate cooperation and
coordination of work across the enterprise. The intent is to integrate core business processes
(accounting, finance, human resources, sorting and shipment, etc.). The ideal enterprise
system could control all major business processes in real time via single software
architecture. In other words, this system collects data from different functions and stores data
in single central data depository. As was clearly shown in the video, the FedEx system
enables coordination of daily activities. For example, scanning a package after picking it up
enters it into the system and assures that the package has been received. Then after reaching
the sorting center, special scanners can measure the size of the package to charge customers
based on the size. Other scanners that read the labels on the boxes generate information about
the destination of each package which helps in the routing process. Moreover, the FedEx
system enables efficient response to customer package shipment orders, and provides
valuable information for improving management decision making in routing for example.

Question-4: How important is technology to FedEx's business processes?

As businesses become more competitive in the global marketplace, information and

technology have become increasingly important. Over the years, the FedEx name has become
synonymous with a tradition of automation, customer service and technological leadership.
Since the company pioneered tracking and routing technologies, FedEx has developed large
integrated telecommunications and information systems. FedEx provides two services to its
customers: the physical transportation and distribution of packages and the information
systems that identify the location of a package at any time. As the leader in the express
transportation industry, FedEx was the first to install computers in vans, provide sophisticated
automation in the mailroom and develop tracking capabilities and software. Customers have
come to depend on the reliability and high rate of efficiency of these systems.
FedEx Provides shipment visibility, status notifications and alerts about critical shipment
events, thereby equipping customers with an unsurpassed capability to plan for and manage
inventory in motion. FedEx identifies FedEx Express shipments by associating them to a
customer and by matching an account number or company name and address, placing
flexibility and control of information in the hands of each user.