Press Releases
Company shares its corporate strategy of doing business on-line
Hong Kong, September 8, 1998 – Federal Express Corporation (FedEx) today reaffirmed its commitment to electronic commerce with its participation at a seminar on E-commerce jointly organized by FedEx and Visa International.
Sharing the company's experience as a market leader in the areas of Electronic Commerce and Supply Chain Management, FedEx's Manager for Strategy and Alliances Asia Pacific, David Smith, detailed the massive potential rewards available to companies geared to capitalize upon imminent paradigm shifts within the logistics industry.
"Supply chain management will be the dominant force in business in the coming decade. The degree to which companies respond to market pressures to increase their efficiency in delivering products and services into the hands of consumers using emerging technologies will determine not only competitiveness, but, in some cases, survival in the future," said Dr Smith.
Trends contributing to the evolution of the logistics industry, according to Dr Smith, include the customer service explosion, demands for speedy order fulfillment, industry globalization and technological developments resulting in organizational integration. "Though without a doubt manufacturing processes play a strong role in the supply chain, it is usually the area of logistics that is viewed as the area for real optimization."
"Information technology and electronic commerce are having a dramatic effect currently on the notion of supply chain management. Use of the Internet as a sales channel is the most obvious example of electronic commerce penetration – but it is the "behind the scenes" activities that are catching the eye of senior management within most organizations. Development of technology that allows direct access to customers and trading partners – eliminating layers within the supply chain – has proven very successful."
Contributing positively to this "New Face" of Supply Chain Management, as Dr Smith calls it, are a wide range of Electronic Commerce products offered by FedEx which are designed to meet the needs of customers wanting to enter the "Internet-E-commerce" arena.
"FedEx's Logistics and Electronic Commerce (LEC) capabilities include customer-driven solutions comprising information technology-related products and services which we have combined with our unmatched worldwide distribution network operating in over 200 countries to save time and money for those who count on us for their transportation needs."
Enhancing the company's speed and reliability are such specially developed software solutions as COSMOS, PowerShip®, FedEx Ship®, SuperTrackers and ExpressClear. Dedicated to becoming the "Airline of the Internet," FedEx will soon introduce a series of new E-commerce tools designed to create Supply Chain Management solutions for FedEx customers in Asia. These tools will enable Internet Cataloging Order Management Functions, and Returns Management – integrated into the FedEx Global Distribution Network.
"As a result of FedEx's dedication to increasing our technological capabilities around the globe, we are enabling companies to replace physical inventory with information which can reduce time to market dramatically," explained Dr Smith. "This fact demonstrates FedEx's attention to the packages and information, both of which are integral to our business."
Further, FedEx will use strategic alliances and internal expertise to ensure their value added products and services will integrate seamlessly into "Best of Breed" solutions. "Through strategic alliances with technology providers, internal service development and increased value-added physical logistics offerings, FedEx is once again putting itself in a leadership position for future business need fulfillment," said Dr Smith.
The benefits of FedEx's "virtual strategy" of extending information integration into customers' business process include the ability of large businesses to re-engineer processes to improve service and lower costs simultaneously. Emerging businesses can also grow rapidly without adding assets and "virtual businesses" can start and thrive with little or no assets.
FedEx currently serves more than 30 countries and territories in the Asia Pacific market with approximately 5,000 employees. The company provides the most extensive trans-Pacific airlift of any major competitor. Operating its own wide-bodied MD-11, DC-10 and A310 aircraft, FedEx offers over 260 flights per week to the following locations: Bangkok, Beijing, Cebu, Hong Kong, Jakarta, Kaohsiung, Kuala Lumpur, Manila, Osaka, Penang, Seoul, Shanghai, Singapore, Subic Bay, Taipei, and Tokyo, as well as destinations in the U.S.
Federal Express, a subsidiary of transportation powerhouse FDX Corporation, connects areas that generate 90 percent of the world's gross domestic product in 24 to 48 hours with door-to-door, customs-cleared service and a money-back guarantee*. The company's unmatched air route authorities and infrastructure make it the world's largest express transportation company, providing fast, reliable and time-definite transportation of more than 3 million items in 211 countries each working day. FedEx and has more than 142,000 employees, 44,700 drop-off locations, 615 aircraft and 40,900 vehicles in its integrated global network. The company maintains electronic connections with more than a million customers via FedEx PowerShip®, FedEx Ship®, and FedEx interNetShip®. Federal Express reported revenues of US$13.3 billion for its fiscal year ended May 31, 1998.
* Certain restrictions apply
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