Case Study - Customer Service
Very good example on how to improve customer service and improve supply chain = optimum costs.
© 2006, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.
Logistics Management June 14, 2006
MEMPHIS, Tenn.—FedEx has rolled out a new logistics service dubbed FedEx Critical Inventory Logistics. The company said the new service lets customers store inventory items at 18 FedEx Kinko’s locations in the United States—allowing them to ship a critical item within a tight timeframe in certain locations with little advance notice.
The new service will be geared toward customers in the healthcare, telecommunications, semiconductor, and biomedical industries, among others. FedEx did a soft launch of the service last fall, with items moving from its 500,000 square foot global distribution center in Memphis to the 18 FedEx Kinko’s Locations, which each have 5,000 square feet of storage space.
“This [new service] provides various shipping options,” Tom Schmitt, president and chief executive officer of FedEx Global Supply Chain Services, told Logistics Management. “If, for example, a diagnostics equipment manager at a healthcare stent manufacturing company needs to send a stent to a customer hospital ASAP, he or she can use this service to best gauge their options for sending the stent.”
The options cited by Schmitt include: having a service representative go to a FedEx Kinko’s, make arrangements with FedEx Kinko’s for deliveries within a 50-mile radius, or use a local van or courier service that has a relationship with FedEx
Another notable benefit of the new service for shippers, according to Schmitt, is that it will help lower costs by reducing inventory and also provide more efficient network planning and the ability to choose shipping options based on timing and cost.
A major objective of FedEx Critical Inventory Logistics is to help FedEx’ customers’ best determine how to position critical inventories throughout the company’s network, as well as develop plans to optimize their supply chains. The company said once the service is in place, orders are fulfilled by identifying the best sourcing locations and transportation options that meet required delivery times and service levels as requested by customers.
© 2006, Reed Business Information, a division of Reed Elsevier Inc. All Rights Reserved.
Logistics Management June 14, 2006
MEMPHIS, Tenn.—FedEx has rolled out a new logistics service dubbed FedEx Critical Inventory Logistics. The company said the new service lets customers store inventory items at 18 FedEx Kinko’s locations in the United States—allowing them to ship a critical item within a tight timeframe in certain locations with little advance notice.
The new service will be geared toward customers in the healthcare, telecommunications, semiconductor, and biomedical industries, among others. FedEx did a soft launch of the service last fall, with items moving from its 500,000 square foot global distribution center in Memphis to the 18 FedEx Kinko’s Locations, which each have 5,000 square feet of storage space.
“This [new service] provides various shipping options,” Tom Schmitt, president and chief executive officer of FedEx Global Supply Chain Services, told Logistics Management. “If, for example, a diagnostics equipment manager at a healthcare stent manufacturing company needs to send a stent to a customer hospital ASAP, he or she can use this service to best gauge their options for sending the stent.”
The options cited by Schmitt include: having a service representative go to a FedEx Kinko’s, make arrangements with FedEx Kinko’s for deliveries within a 50-mile radius, or use a local van or courier service that has a relationship with FedEx
Another notable benefit of the new service for shippers, according to Schmitt, is that it will help lower costs by reducing inventory and also provide more efficient network planning and the ability to choose shipping options based on timing and cost.
A major objective of FedEx Critical Inventory Logistics is to help FedEx’ customers’ best determine how to position critical inventories throughout the company’s network, as well as develop plans to optimize their supply chains. The company said once the service is in place, orders are fulfilled by identifying the best sourcing locations and transportation options that meet required delivery times and service levels as requested by customers.
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