Trident University International
LOG401 INTRODUCTION TO GLOBAL LOGISTICS MANAGEMENT
One of the means by which FedEx effectively utilizes IT in its logistical operations is by utilizing IT in order to expeditiously conduct a situational analysis of its logistical needs, which includes obtaining data on the material that will be needed as well as its costs, the number of personnel that will be needed in order to carry out these logistical operations, the costs that will be involved in these operations, how much storage space would be needed to store supplies, the most cost-efficient method by which to ship to receive packages, ascertaining the cheapest purchasing price for materials etc.
What will also be included in the utilization of IT in a situational analysis will be ascertaining the precise amount of fuel that will be needed for each and every aircraft within its fleet, for each and every transport of FedEx packages worldwide. This is a very important and tremendous responsibility that will require a great deal of state of the art IT, in order to be able to provide up-to-the-minute data and calculations of the exact fuel needs of these aircraft. In addition to this, this IT equipment will also be needed to be able to effectively calculate the fuel needs of its land transport vehicles, which will be delivering packages to different processing sites as well as to customers around the world as well.
In addition to the tremendous amount of data that FedEx utilizes IT for in the materials area of its logistical operations, FedEx also utilizes IT in calculating the personnel needs for the organization each fiscal year. This is a very important aspect of its logistical operations, due to the fact that an adequate number of highly trained personnel is crucial for the efficient and effective operation of this organization’s logistics. This IT is utilized to provide statistical data on the minimum amount of personnel that can be utilized to carry out its logistical and transport operations in a highly efficient and effective manner, without there being any decrease in the quality and timeliness of logistical operations. This results in minimizing the personnel and human resources cost to the organization, while the organization still provides timely service to its customers.
FedEx also utilizes IT in developing the methodology by which to effectively carry out logistical operations in a coordinated manner around the globe, which means that information technology is utilized to keep track of each and every package within the organization’s system, so that warehouses and processing facilities will have an accurate schedule of when packages will be reaching their facilities. The data that is compiled by this IT is also utilized to provide transport personnel with schedules of when they are expected to arrive at processing facilities. This data is also utilized for the important task of providing customers with real-time data as to the location of the packages so that they can track them, and know exactly when their packages are supposed to arrive (Christopher, 2011).
Christopher, Martin. Logistics and supply chain management: creating value-adding networks. 4th ed. Harlow [etc.: Financial Times/Prentice Hall, 2011. Print.