There's an up-close look at the increasing speed of the logistics business in the May/June issue of Chief Executive magazine featuring FedEx, founded in 1971 as Federal Express by Frederick Smith.
Rising expectations for immediate commercial gratification, especially among younger households, are pushing logistics and supply chain management to new levels of performance--aided by robots doing repetitive tasks.
"Organizational culture contributes to FedEx success," Richard Smith, CEO of FedEx Logistics is quoted as saying. "You must be able to pivot quickly and nimbly shift strategy to delight the customer in the face of inevitable surprises," he added.
Adapting when necessary
FedEx announced this month that it would begin Sunday delivery to most U.S. homes. That decision comes amid significant changes in online shopping patterns.
Additionally, FedEx said it planned to hire about 700 flexible part-time Express drivers in 160 residential and rural domestic markets, responding to mounting pressure from Amazon on traditional delivery services such as FedEx and UPS.
While leadership and strategy get more attention, the daily routine shows what an organization is made of in terms of experience, processes, and results.
The evening sort
The next time you review internal collaboration to see if it's functioning properly, consider the following operational complexity . . .
At the FedEx World Hub in Memphis, Tennessee, at what's referred to as the "evening sort," an intricate ballet is performed each evening.
The sort involves:
-84 miles of conveyor belts
-150 cargo jets
-1.5 million packages
The simple goal? Making sure your package, and mine gets to where it needs to go.
And 24 hours later FedEx crews do the evening sort all over again.
The next day
According to the FedEx website the company covers every U. S. street address and services more than 220 countries and territories. Air-ground express service flows through 650 airports worldwide with just over 600 aircraft in the FedEx fleet.
In addition to the late night staff in Memphis, it's up to more than 240,000 team members globally to make the pick-up and delivery cycle work every day.
What's a key factor for success in prompt delivery? An easy-to-read house or business address on the premises.
Ballet dancers make what they do look easy when in fact, it's one of the hardest tasks to perform. Just ask any associate working the night shift at FedEx.*
*No doubt similar efforts are put forth by employees at United Parcel Service (UPS) and the United States Postal Service (USPS).
(C) Bredholt & Co.