Information Technology Reference
In-Depth Information
Information Systems in the Global Economy
Information Systems Connect People with Packages
International shipping companies like FedEx might appear to be fairly simple operations.
After all, how much technology does it take to transport a package from one location to
another? In truth, however, FedEx is counted among the most technologically-advanced
corporations in the world.
FedEx manages two intimately joined networks: its shipping network composed of
distribution centers, trucks, planes, and delivery personnel, and its information system
composed of scanners, computers of all kinds, telecommunications equipment, databases,
software, and the people that manage and use it. Both systems are equally important to
the service that FedEx provides and to the company's leadership role in the industry. The
shipping network is the primary service, and the information systems allow the shipping
to function efficiently and effectively.
Consider, for example, the new information system recently deployed across offices of
FedEx Canada. FedEx realizes the importance of being able to provide information to its
customers regarding package deliveries without hesitation or delay. With this in mind,
FedEx Canada implemented a state-of-the-art customer relationship management (CRM)
system designed for use by customer service representatives and sales staff. Representa-
tives use the new system to find the location of any package in the global distribution
system at any moment in time. The system also prompts FedEx staff on how to manage
the dialogue with the customer based on the scenario. For example, if the customer is
interested in having a shipment picked up, the information system will provide the
sequence of questions for the representative to ask the customer. In this way, FedEx per-
sonnel can handle any foreseeable request with a minimum of training.
To make this type of service possible, information about packages is collected at every
stop along the route. A package label may be scanned a dozen times prior to its delivery
at its final destination. Each time it is scanned, the record in the central FedEx database
is updated. The database acts as a source of information that feeds many information sys-
tems designed for varying services across the company. Personnel and customers can then
access that information from the FedEx network and the Internet.
Managing a global business is a complex job with many considerations. For example,
the FedEx Web site is available in 25 languages. The site isn't simply translated into other
languages, but rather redesigned from the ground up for each language to satisfy and
appeal to the culture for which it is created. FedEx must also understand and work with
numerous currencies and international laws. For example, packages traveling across
international borders are often subject to customs inspections.
FedEx's unique experience as a global shipping company has provided it with valuable
insight into the interplay between businesses around the world. By understanding the flow
of packages, products, and parts between global organizations, FedEx has positioned itself
as one of the most important components of the burgeoning global economy. FedEx is
much more than a delivery service; it is a logistics manager that connects the many com-
ponents of the supply chain—that is, the process that takes a product from the raw
materials from which it is built to the retail store at which it is sold, and increasingly to
the customer's doorstep. The supply chain is part the value chain, which includes methods
for adding value to products and services. FedEx and other global shipping companies
have become key components in business value chains.
