2 Part 1ONLINE FILE W1.2 FEDEX SOLUTIONS FedEx provides a host of Web-based logistics shipping, etc.. FedEx Distribution Centers This service uses a worldwide network of warehouses to pr
Trang 1The Solution
M & S realized that in the digital era survival depends on the use
of information technology in general and electronic commerce in
particular Electronic commerce (EC, e-commerce) is a process of
buying, selling, transferring, or exchanging products, services,
and/or information via electronic networks and computers M & S
initiated several EC initiatives, including the following
• Selling online Like many other retailers, M & S sells
some of its merchandise online Shoppers can collect
their merchandise in a “shopping basket,” pay online,
and receive the merchandise the next day (in the UK)
Online shoppers are encouraged to provide a UPC code in
order to get the same product they see at a physical
store, frequently at a lower price
• Security A security system tracks transaction data in
real time, looking for fraudulent events If any fraudulent
events are discovered, the system alerts the in-store
security staff in the affected store by sending them a
short text message via cell phone
• Warehouse management A mainframe-based
ware-house management system, known as the Multi-User
Warehouse System (MUWS), was installed first at
M & S’s Hardwick distribution center near Birmingham,
United Kingdom Using Microsoft.Net infrastructure,
store sales are reported to a data warehouse (a
reposi-tory of corporate data), almost in real time The data
are then available for decision making on inventory
replenishment (when and how much to ship to each
store) The data are also available to the company’s third-party logistics service providers, who run the warehouse operation and deliveries
• Merchandise receiving The process of matching orders and invoices is automated, making it faster and free of errors Information about arriving goods is passed auto-matically to both the warehouse and the stores This way MUWS can do a real-time check of arriving and available stock Also, the system enables M & S to pay suppliers more quickly, which makes them happier and more cooperative
• Inventory control The warehouse management and the merchandise receiving system, in addition to the real-time data reporting, improve customer relationships Customers can find what they want because replenishment is accom-plished quickly (sometimes within one-half hour)
• Speeding up the supply of fashion garments Using special software, merchandisers can access and change allocation plans from any computing device (PC, laptop, pocket PC) anywhere and at any time in response to changing demand patterns This is especially important for fashion garments, where meeting ever-changing demand is critical for competitiveness
• Collaborative commerce M & S can now pass more accu-rate forecast demands to its suppliers for fast delivery of goods, often directly to the M & S retail stores The new information system enables M & S to work with suppliers
to reroute merchandise to different depots and change allocations to where they are needed
The Results
M & S’s CEO, in a message to the shareholders (summer 2002),
indicated that a turnaround is underway He sees M & S as a
leader and example setter in retailing, resulting in increased
profitability and growth
Sources: Compiled from marksandspencer.com; Ody (2002); and Hayward (2002)
ONLINE FILE W1.1 MARKS & SPENCER—A NEW WAY TO COMPETE
The Problem
Marks & Spencer (marksandspencer.com) is a UK-based, upscale, global retailer known for its high-quality, high-priced merchandise Operating in more than 30 countries, the company faces stiff competition, especially since the beginning of the economic slowdown that started in 1999 Customer service became a critical success factor for Marks & Spencer Other critical success factors included an appropri-ate store inventory system and efficient supply chain activities To attract shoppers, the company had to reduce prices at its stores, which drastically reduced profits Several other big retailers were wrestling with similar problems, including Kmart, which had to file for bankruptcy Will Marks & Spencer (M & S), a world-class retailer, be able to survive?
Questions
1 List the business models used by M & S
2 List the different EC transaction types used by M & S
3 List some of the benefits M&S derives from EC
4 Relate this case to supply chain management improvements
Trang 22 Part 1
ONLINE FILE W1.2
FEDEX SOLUTIONS
FedEx provides a host of Web-based logistics (shipping, etc.)
solutions to business customers Listed here are the major
services provided to these customers
FedEx Distribution Centers
This service uses a worldwide network of warehouses to
pro-vide ready-to-use warehousing services to businesses This
allows for instant expansion of distribution capabilities and
is especially helpful to small businesses The networked
dis-tribution system is managed electronically, and all
communi-cation with the shippers and receivers is done online
FedEx Express Distribution Depots
This service is primarily limited to U.S businesses and
pro-vides a one-stop source of express distribution capabilities
Goods in these depots are available for delivery 24 hours a
day This service is targeted at time-critical businesses
Again, all communication is done online
FedEx Returns Management
FedEx NetReturn is designed to streamline the process of
return of unwanted products to retailers or manufacturers
FedEx business customers can use the Internet-based system
to schedule pickup of packages from consumers and to obtain
time-definite delivery as well as online status tracking and
customized reporting
Other Value-Added Services
FedEx offers several Web-based value-added services For
example, products can be shipped from a FedEx-operated
warehouse instead of the business customer’s warehouse In
addition, FedEx can provide a “merge-in-transit” service to
customers, such as Micron Computers, that operate on rapid
turnaround and delivery Under the merge-in-transit program,
FedEx stores peripherals such as monitors and printers in its
Memphis, Tennessee, air hub FedEx then matches those
products with the computers en route to a customer If a
customer in Boston, Massachusetts, for example, orders a
popular PC model online, Micron sends the electronic order to
FedEx, which will transport the computer from Micron’s
ware-house to FedEx’s Boston station FedEx electronically
matches the computer with a standard Micron monitor and
printer shipped from a FedEx-managed warehouse in
Memphis The FedEx driver then delivers the computer,
moni-tor, and printer together to the customer’s home
Online Wireless Portal
FedEx customers now have a wireless tool with which to
access FedEx service information Subscribers to Nextel
Online, a wireless service from Nextel Communications Inc.,
can now efficiently view the shipping status of their
pack-ages through a wireless Web site dedicated to mobile
package-tracking and drop-off services
Improved Custom Clearance Operations Customers doing business internationally benefit from improved convenience due to express clearance operations currently conducted by the Fritz Companies
Simplified Shipping for North American Importers
FedEx Trade Networks uses ocean or air transportation to pro-vide customized and cost-effective solutions that enable shipments from Asia and Europe to go to multiple destina-tions within North America
Enhanced Online Shipping Toolkit Features now enable customers to quote, schedule, track, and map shipments as well as view corresponding ship-ment docuship-ments
FedEx Ground Visibility FedEx InSight is the first Web-based application in the mar-ket that offers visible current status information on inbound, outbound, and third-party shipments It enables the parties
in a shipping transaction to go online to find information about FedEx Ground shipments and helps keep logistics chan-nels running at peak efficiency
Help with Global Shipping FedEx has the first carrier-provided, online duty and tax esti-mator on its Internet-based FedEx Global Trade Manager application International shippers now have an easier and more affordable way to estimate the multitude of governmen-tal charges, duties, and other fees associated with many of their inbound and outbound overseas shipments
FedEx Custom Critical Passport Auto Transport
FedEx provides fully enclosed transport for valued vehicles from classic, collectible and antique cars to hot rods, street rods, and muscle cars
White Glove Services FedEx combines the speed and urgency of an expedited shipping carrier with the special services and extra attention to detail associated with moving van lines or specialty transporters
Sources: Compiled from Rao et al (1999); from FedEx press releases (2001–2003); from Business Wire articles; and fedex.com (accessed February 2005)
Questions
1 How does a company benefit from outsourcing logistics (shipping, etc.) to FedEx?
2 What are the benefits of the EC services to shippers?
3 Visit fedex.com and identify more EC-related business services