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About this document
- Pages
- 4 pages
- Price
- $4 one-time, yours to keep
- Membership
- Included in every plan
- Format
- Subject
- Business, Logistics, Supply Chain Management
This case study examines FedEx’s solutions for two companies’ supply chain issues. It covers the problems faced by Fujitsu and Cisco Systems, and how FedEx improved their inventory management and delivery times.
What's inside
- Fujitsu's inventory management and delivery problems
- FedEx's solutions for Fujitsu
- Cisco Systems' supply chain issues
- FedEx's Merge-In-Transit service
- Results of FedEx's interventions
Who it is for: Students studying business strategy, logistics, and supply chain management. (Postgraduate)
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Summary
Inventory management and delivery times are key to logistics and supply chain management. Students learn how FedEx helped Fujitsu and Cisco improve their operations.
Fujitsu's problems
Fujitsu struggled with inventory management and delivery times for its notebook computers. Two freight forwarders lacked coordination, and the Portland facility was not efficient.
FedEx's solutions for Fujitsu
FedEx moved Fujitsu's operations to its Memphis hub. FedEx's aircraft carried components, and the JIT principle was used for assembling schedules.
Cisco's problems
Cisco had issues with assembling and delivering its products. The growing number of warehouses added to the complexity.
FedEx's solutions for Cisco
FedEx developed a unique service called 'Merge-In-Transit' for Cisco. This process ensured quick delivery and eliminated excess inventory at warehouses.
Key terms
- Inventory management
- The process of overseeing and controlling the ordering, storage and use of components.
- Delivery times
- The time taken from when an order is placed until it is delivered.
- Just-In-Time (JIT)
- A production strategy that aims to improve a business's return on investment by reducing in-process inventory and associated carrying costs.
- Merge-In-Transit
- A process where components are sourced from nearby suppliers and sent to assembly warehouses for quick delivery.
- Integrated Repair and Return (IRR)
- A process where a facility is linked to another location for assembling and testing products.
- Enterprise Resource Planning (ERP)
- Software used to manage day-to-day business activities such as accounting, procurement, project management, risk management and supply chain operations.
Questions this document helps with
- How can coordination between freight forwarders improve delivery times?
- What benefits does the Just-In-Time principle bring to inventory management?
- How does the Merge-In-Transit process help in reducing inventory costs?
Summary written with AI from the document's text.
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