CASE A - Fed Ex - ISOM - B1 team 10

September 4, 2017 | Autor: Victor Despons | Categoria: Management, Business Management
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Information Systems and Operation Management

DING Zhilu DESPONS Victor PIED Victor POULAIN Thomas TESSIER Tristan Group B1 / Team 10 EDHEC M1 Students in BM

Case study A: FedEx Monday January 19th of 2015 I. List the business processes displayed in the video The business process of FedEx is the set of tasks that are performed from the reception of the good by the company to their sorting and final delivery to the appropriate destination. First, the shipping process begins when a FedEx employee picks the good at a client’s domicile. The employee scans the product in order to confirm the reception of the package. Then, the goods are transported to a sorting sorter by truck. They are put on a conveyor belt in order to automatize their sorting process. A system scans their length, width, height and weight to determine their volume and to establish the price that will be charged to the customer using a special formula. Another multi-dimensional scanner determines the final destination of the packages by reading their labels. Furthermore, the packages are redirected to the belt corresponding to their destination through the use of paddles. When the label is situated downside of the package, manual sorting will be required. Later, the packages are stored in special containers that maximize the space used in airplanes. Trucks and airplanes are coordinated by a FedEx control center that checks the control and destination of the airplanes. The containers are then shipped to a different location by airplanes, transported by truck to a hub where the same sorting process is used and the packages eventually arrive to their final destination right to the customer’s door by using a FedEx courier. The final step is the scanning of the data bar to finalize the transaction. II. List the types of information systems shown in the video. Can you describe how systems that were not shown might be used at FedEx? The video shows us different information systems used by FedEx:   

The Identification Number System that gives a unique identity to the package from beginning to end and allows an updated follow-up. The Transaction Processing System creates data on the package: weight, size, volume, and destination With this data, managers use Management Information System and Decision Support System to ensure good transportation of package. It includes trucks, airport and logistic centers management. CASE A – ISOM

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The information System that is not shown in the video is the control is the Executive Support System. This one is used mainly by top-management to help decision. It displays information such as statistics and key metrics to profitability III. The system displayed in the video is an enterprise system. Why is this true? Explain your answer? Enterprise systems are the overall combination of computer hardware and software that a business uses to organize and run its operations. FedEx uses definitely this system because they do not only work with few departments but with the whole company. As we see in the video, information is sent to the whole firm, from the scanning process to the delivery in the customer's house. By this way, a sort of data warehouse is created as data are collected in different ways and are finally stored in a single software. Thanks to this system used by FedEx, all the information is coordinated and cooperation exists in each stage of the package's transportation between the different structures of the company. So, there is a real independence between all the departments and the enterprise system allows the integration of the computer systems that run all phases of FedEx's operations to facilitate cooperation and coordination of work across the enterprise. That is why, a failure of it at one stage will have a knock-on effect on all the next stages of the process. This system is useful for FedEx because they can optimize the capacity of the plane, reduce the costs, they can charge the customer according to the size of the package, and they can deliver it on time. IV. What are the risks and benefits of having a single Super Hub in Memphis coordinate the delivery of packages across the United States? Having a single Super Hub in Memphis to coordinate the delivery of packages across the United States presents some risks. Indeed, by gathering all the packages, there is a greater probability that a mistake will have consequences on more products. For example, if the information system is defaulting, the all quantity of packages will be touched. It means that any problem can have impact about every package. As it is said in the video, these are everyday thousands of packets which are passing by this Super Hub. With an error in any area, the all stock is likely to be impacted and so the distribution of packets across the United States could be false. In that case, the FedEx’s company would lose in customer’s satisfaction. Its brand image, which is reliability, speed and quality, will be deteriorated. Also, this single hub shows a lack of alternative. If the quantity of packages becomes higher than what the hub can receive, or if machines are broken, if the warehouse burns: What do we do? Do we have another solution, another place to continue the treatment of packages? Nevertheless, this process has also benefits. Indeed, by concentrating the US distribution in only one Super Hub, the company keeps a better control on the packages. It knows exactly where they are, when and for which destination. Packages are not scattered across the different states what would make really harder to act on them in case of problem. This means a gain of time and money if a specific package has to be found quickly. The only place it will have to be inspected is the Super Hub in Memphis. There are also probably an economy of scale and a save of money. FedEx does not have to invest in other hubs or to buy/repair more machines or even to pay more employees.

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V. How could FedEx’s shipping process made be made even more efficient? FedEx’s shipping process could be made even more efficient by adding a system that prevent the packages from turning around. As the all faces are scanned except for the bottom, something has to be done to avoid it to happen. Maybe, a transparent conveyor belt could allow the Transaction Processing System to scan the packages’ labels when they are on the bottom of the package. This process allows to delete the manual part of the job that occurs when the Transaction Processing System cannot read the destination. The solution could also be at the beginning by avoiding destination manual writing by customers. This whole process could ensure lower cost by human work reducing and by quicker operations by machines. Furthermore, maybe the process should add colors in packaging to better differentiate packages and introduce a standardization of FedEx packages. Sometimes, customers don’t use standard packages provided by FedEx. By forcing them using FedEx customized package, the company would not have to calculate the perfect fit of each one and could delete one operation.

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