Mg518 Week 1 Assignment
Week One Assignment
George Cagle
ITT Tech Online MG518 - Operations and Process Management
John Theodore May 04, 2014
Week One Assignment FedEx Operations Management Technique
FedEx’s traditional ways of doing things were changing. Originally, FedEx was a company that provided quick service faster than any competition for a premium price. Price was no object to most companies because the cost of doing business quickly far outweighed not getting it there in time. Bids on new business needed to be there overnight! This brought in more business to most organizations and so the cost was no so important. As times changed and some companies fell on harder times, they could not afford the exhorbinate …show more content…
amount of money it cost to send items overnight. Organizations started to look for new ways to do this.
The Internet was one of the saving elements of many corporations.
They could send documents by e-mail to customers and even pre-bids allowing the company to send the original with a three-day scope. This allowed for cheaper postage and less stress. What more could companies want? FedEx started to feel the pressure and what had once been quick and reliable was fading fast.
FedEx realized they would not be able to maneuver their typical operations management techniques they had been used to (Wiley Media, 2011). Originally, FedEx got the inputs and the transformation process was implemented. The inputs became outputs and fulfilled the organizations plans and goals. This had to change. Instead of concentrating on the overnight flights of packages, FedEx decided to look more locally as to what to do. They became concentrated on organizations such as Amazon.com who is doing a tremendous business and can afford to pay a large amount overall but a cheaper amount individually.
FedEx knew they have to revamp their operations management strategy into what would be low-cost operations and dependable delivery services for organizations and individuals alike. Their prior operations management stressed speed. Now it stressed economical cost and dependable
delivery.
New Techniques
FedEx could surely come to an agreement with several busy companies such as Amazon, Overstock, Wal-Mart, and Kmart as to a yearly contract with them for a certain amount of service at a discount rate. Cuttings rates for FedEx Home Delivery is just one of the ways FedEx has come to terms with the high cost of sending overnight. They could also entertain individual small businesses that don’t have the resources for a super-deluxe computer system and become a “host” for companies and utilize their e-mail capabilities for sending large files for small businesses.
A perfect example of a business that could utilize such a set-up would be a small construction company that needs to send their blueprints overnight. With the help of FedEx accommodating as a host site for e-mail, FedEx could send their blueprints immediately for a small fee. If FedEx signed contracts with several small but flourishing businesses, they could have contracts with all of them and become the reliable, immediate source of sending important documents encrypted and safe to needed locations.
Making money continually is the goal of most companies. Having a reliable source of income is another. FedEx is capable of doing this and more.
References
Wiley Media. (2011). Introduction to Operations Management. Retrieved from http://media.wiley.com/product_data/excerpt/48/04713472/0471347248-3.pdf
George Cagle
ITT Tech Online MG518 - Operations and Process Management
John Theodore May 04, 2014
Week One Assignment FedEx Operations Management Technique
FedEx’s traditional ways of doing things were changing. Originally, FedEx was a company that provided quick service faster than any competition for a premium price. Price was no object to most companies because the cost of doing business quickly far outweighed not getting it there in time. Bids on new business needed to be there overnight! This brought in more business to most organizations and so the cost was no so important. As times changed and some companies fell on harder times, they could not afford the exhorbinate …show more content…
amount of money it cost to send items overnight. Organizations started to look for new ways to do this.
The Internet was one of the saving elements of many corporations.
They could send documents by e-mail to customers and even pre-bids allowing the company to send the original with a three-day scope. This allowed for cheaper postage and less stress. What more could companies want? FedEx started to feel the pressure and what had once been quick and reliable was fading fast.
FedEx realized they would not be able to maneuver their typical operations management techniques they had been used to (Wiley Media, 2011). Originally, FedEx got the inputs and the transformation process was implemented. The inputs became outputs and fulfilled the organizations plans and goals. This had to change. Instead of concentrating on the overnight flights of packages, FedEx decided to look more locally as to what to do. They became concentrated on organizations such as Amazon.com who is doing a tremendous business and can afford to pay a large amount overall but a cheaper amount individually.
FedEx knew they have to revamp their operations management strategy into what would be low-cost operations and dependable delivery services for organizations and individuals alike. Their prior operations management stressed speed. Now it stressed economical cost and dependable
delivery.
New Techniques
FedEx could surely come to an agreement with several busy companies such as Amazon, Overstock, Wal-Mart, and Kmart as to a yearly contract with them for a certain amount of service at a discount rate. Cuttings rates for FedEx Home Delivery is just one of the ways FedEx has come to terms with the high cost of sending overnight. They could also entertain individual small businesses that don’t have the resources for a super-deluxe computer system and become a “host” for companies and utilize their e-mail capabilities for sending large files for small businesses.
A perfect example of a business that could utilize such a set-up would be a small construction company that needs to send their blueprints overnight. With the help of FedEx accommodating as a host site for e-mail, FedEx could send their blueprints immediately for a small fee. If FedEx signed contracts with several small but flourishing businesses, they could have contracts with all of them and become the reliable, immediate source of sending important documents encrypted and safe to needed locations.
Making money continually is the goal of most companies. Having a reliable source of income is another. FedEx is capable of doing this and more.
References
Wiley Media. (2011). Introduction to Operations Management. Retrieved from http://media.wiley.com/product_data/excerpt/48/04713472/0471347248-3.pdf