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Case Study On Federal Express

This document discusses the key elements of the strategic sourcing process at Federal Express. It explains that the process involves extensive research on potential suppliers in the first stage. A strategy is then selected and further research is done to evaluate suppliers before making a final selection. Federal Express assigns individual associates to oversee relationships with suppliers and ensure both parties' needs are met. Elements like research, negotiation, and monitoring that Federal Express uses are common to the strategic sourcing processes of other companies as well.

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Dipanjan Roychoudhary
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638 views3 pages

Case Study On Federal Express

This document discusses the key elements of the strategic sourcing process at Federal Express. It explains that the process involves extensive research on potential suppliers in the first stage. A strategy is then selected and further research is done to evaluate suppliers before making a final selection. Federal Express assigns individual associates to oversee relationships with suppliers and ensure both parties' needs are met. Elements like research, negotiation, and monitoring that Federal Express uses are common to the strategic sourcing processes of other companies as well.

Uploaded by

Dipanjan Roychoudhary
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Supply Chain Management case study

1. What are the key elements that must be completed at each stage of the strategic

sourcing process?

The key element in the first stage is carrying out research and an extensive one for that

matter on the sourcing origin including who it is, how much it will cost, their competition,

how they function and their history with other suppliers. The second step is to select a strategy

of sourcing after analysis of the information and making decisions regarding issues such as

proposal making and approach. A supplier portfolio analysis on issues such as qualification

and satisfaction of requirements of the potential suppliers is done at this stage after the

research is carried out and before any requests for proposals are done.

Another supplier evaluation research is carried out on the potential suppliers to ensure

nothing has been overlooked before making a final decision. Selection of the supplier,

negotiations and sending out the RFPs is done at this stage. Selecting the best source and

integrating any conflicts in order to ensure the contract will be workable and finally is the

monitoring of the supplier through the FedEx Supplier Scorecard system.

2. How does the governance structure for supply chain management at Federal Express

support the strategic sourcing process?

The supply chain management comprises of a team of individuals assigned different roles

and different suppliers to handle. Only one individual associate from the group is assigned to

every supplier. The work of the associates is to take responsibility and oversee all the ground

work necessary including being in charge of the research and profiling. They are also tasked
with the responsibility to manage and nurture the relationship with the suppliers as well as

ensuring that the needs of FedEx are well taken care of by the suppliers.

They also keep close tabs with the happenings in the market and the other suppliers as

well and any changes initiate their renegotiation with their current suppliers. This is carried

out to prevent them from being short changed or losing out on new innovations and deals that

will make them lose out the competitive advantage they currently hold in the industry. They

also handle the decisions revolving around strategic management which means they

coordinate the supplier and engineering groups as well as dealing with any challenges brought

about by the sourcing process.

3. Are there elements of the strategic sourcing process used at Federal Express that

apply to other companies?

Yes. The first step of the process that includes research and profiling is carried out by

almost all the companies before selecting the best suppliers in the market. This is important

for all the companies to doing order to eliminate frauds in the market, ensure they get a good

bargain and deal for their money as well as being provided with only the best as long as they

can afford it. Research and profiling also saves time. The other step that applies is the

negotiation that will lead to making of the contract to cement the business relationship

between the supplier and purchaser. The negotiation is important to all companies to prevent

any side feeling short changed before sealing of the deal for a period of time. The negotiation

is also for record purposes in the contract and for future reference. The last step FedEx shares

is the monitoring process. This monitoring is done to ensure that the terms of the contract are

still be followed and to also renegotiate in case of changes in the market place.
Work Cited

Handfield, Robert. Strategic Sourcing and Supply at Federal Express. Tennessee: Federal

Express Corporation, 2001.

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