FedEx Superhub

FedExSuperhub

Cargoservices involve the hauling of goods of different sizes and useacross various boundaries both nationally and internationally. Theidea of transporting goods through the air has gained lotsignificance especially in the 21st century due to the need forspeedy processes. Many companies that work with perishable goods orthose with urgent operations opt for air services so that they candeliver their services and products in time. The most quotedcharacteristics of transporting goods through the air are fastdelivery and safety. Freight companies, therefore, have adopteddifferent transport airplanes that have modern equipment and fittingsto ensure the safety of goods. They have across to many airportsacross the globe, and they operate tight schedules, this is evidencethat people are fast adopting air services.

Oneof the airline services with an international feature is the FedExExpress. The company, formerly known as the Federal Express haulscargo across different destinations. It is the world’s largestcargo airline in terms of its size in the market as well as the sizeof its fleet. The whole cooperation delivers cargo t over 300destinations every day (Lyster, 2012, p. 55). It has a Superhublocated in Memphis, and it is a beehive of activity throughout theyear. The is the busiest air cargo handling hub in theworld. Millions of packages flow into and out of the hub every week.The company employs 4,000 individuals during the day and 8,000 atnight to meet the demand of the clients. It has a perimeter of aboutfive miles and has a literal connection to every part of the globe.It is the main hub that keeps FedEx Company connected to the rest ofthe world. In Memphis, the airline handles more than 3. 5 millionpackages every day (Kasarda, 2013, p.24).

Aircargo operations require the institution of policies that lead to thegreatest level of customer satisfaction. The number of packagestransported to the different destinations and their efficiencydepends on the mechanisms on the ground. The hub is one of the placeswith a comprehensive set of strategies to ensure customersatisfaction through the timely delivery of goods. The hub operatesunder three main strategies. First, it aims at competingindependently with other companies in the world that provide similarservices. Through the adoption of proper best practices customizedfor the specific goals of the company, it has become the best in theindustry. Whatever other companies offer, the hub offers similarservices at an improved environment of safety and favorable costs(Laudon &amp Laudon, 2013, p.4).

Secondly,the FedEx Hub has an independent operation that focuses onindependent world networks to meet different needs of customers. Witha wide client base, the company sorts their different needs in termsof speed and safety of their goods and customizes the deliveries. Forthis reason, it has a long list of loyal customers who prefer it toother competitors in the market. Finally, the hub works closely withall the stakeholders who have an interest in the business. Theseinclude workers, the management, and the customers. The environmentsurrounding the group is a reflection of mutuality required in thefield. Working together has seen the company experience an averageannual growth of 28%, and this attracts a lot of investors. It is achannel of attracting capital in the business from heavy investorswho want to put resources into companies with desirable prospects(Laudon &amp Laudon, 2013, p.5).

Theoperations of the Memphis hub meet the qualities set for the standardmanagement of cargo. The company observes various strategies. First,the hub is very critical to ensuring the security of goods when inthe airport as well as hen airborne. The 21st has its shares ofworries associated with a different group that can us variouschannels to implement their mission. One of the major targets is theairlines industry. One of the security controls that the companyobserves the mainstream security procedures of the MemphisInternational Airport. The procedures include inspecting the goods toascertain their safety (Lyster, 2012, p. 61).Also, the company worksclosely with other department involved in national and internationalsecurity. It operates a private security force that is on standby incase of any security breach in the airport. The hub also worksclosely with the homeland security and counter-terrorism officers.They inspect the goods for explosives, drugs or other substances thatmay contravene public security (Laudon &amp Laudon, 2013, p.8).

Thepresence of the security officers on the site is mainly due to themeasures adopted by the country after the terrorist attack on theworld trade center. Every company transporting people or goodsthrough the air have to comply with the security regulations. Thesmooth flow of activities at the airport is because the companyobserves all the regulations. The goods going airborne have anassurance of security and clients need not to worry about the safetyof their goods.

Secondly,the company is one of the most convenient in the industry in thedelivery of good. Clients with different needs find satisfaction inusing the hub. The speed and delivery procedures of different goodsrequire different considerations. For example, urgent parcels cannotbe on the same airplane with other goods that do not have an urgentdelivery. The big workforce on the ground sorts the cargo concerningtheir specific needs. The contingency of goods further findsenhancement in the large fleet that the hub own. Currently, thecompany has more than 600 aircrafts that crisscross the world t meetthe needs of different clients. An aircraft lands every 90 minutesand takes off half an hour later to a different destination (Lyster,2012, p. 59). At no time will an aircraft be lying idle on the runwaywithout any engagement. Increased clients demand the addition of newaircrafts. The hub buys additional aircrafts every time there is aneed that would be beneficial both in the short term and long term.

TheMemphis hub has clients across the globe. For convenience purposes,there is a need to transport goods over long distances withoutdelays. The Boeing 777, which is a modern aircraft adopted by thecompany can make long hauls without making a stopover. For example,it transports goods from Shanghai to Memphis as a direct flight. Forthis reason, both the local and national clients receive theirdeliverables in the shortest time possible (Budd et al., 2015, p.24).

Aircargo companies work hand in hand with other ground companies thatdeliver to the customers. Only a few companies incorporate ground andair transport. To beat completion and to increase the level ofcustomer satisfaction, the hub ahs ground operation all over theworld. The goods that leave Memphis head to different destinations.Grouping and sorting the goods in terms of geographical localitiesmake it easier to contact the customers and arrange for delivery.With over 55,000 trucks in the different countries, the companyoffers door services for the goods. The adoption of the idea emanatedfrom two main objectives. The first one is increased convenience inthe delivery of good and secondly, to ensure the safety of goodsbefore they reach their destinations (FedEx Corporation, 2015).Sometimes, ground delivery services may have poor handlingmechanisms. Whenever the clients receive goods late or in badcondition, they can associate with the airline company that deliveredthem. However, by having a delivery service, the company can makefollow-ups and control the handling of goods before they reach theirfinal destination.

Thecompany owned delivery services is cheap in the long run than whencorporations use the contracted companies to complete the mission.The cost of delivery goes up every year, and the companies dig deeperin their pockets. For FedEx, the number of parcels delivered everyday make owning delivery vehicles to be feasible plan.

Speedis also another important factor observed by the hub in Memphis. Thetwo main reasons why people choose air transport over other meanslike rail and road is the speed involved. Urgent parcels are betdelivered tough air. If clients look forward to this attribute,airlines dealing with cargo should institute measures to ensure thatthey meet the timely delivery of parcels. The FedEx superhub inMemphis is a unique model of a company that invests in speed. Thecompany has enough aircrafts that operate a tight schedule to ensurethat no time gets lost during loading, offloading or stop over. Teaverage time of landing and taking off of aircrafts in the superhubis about 90 minutes. Within thirty minutes, the staff offloads andloads the carriers with the deliverables.

Thehub invests in human resources who work round the clock to ensurethat the goods reach their destination in time. The speed requiredfor loading and offloading demands a large number of attendants.4,000 individuals work in the hub during the day and 8,000 work atnight. The staff might seem big for the single hub, but the intensityof the services demand such a big number (Rayport, 2010, p.2).

Thecurrent trends in air cargo handling require that airline companiesadopt new technology. The industry is not averse with the changingenvironment where innovations dominate in almost every field. FedExis one the companies that invests heavily in technology. The companyuses one of the largest computer and telecommunications network. Thecourier system operates the super trackers. They are hand-heldcomputers that record the transit of goods through the company’sintegrated network. One of the distinct features of the technologyadopted by the superhub it is customer oriented rather than to beatmerely the competition (Rayport, 2010, p.2).

Thecommunication gives the customers a chance to enquire the state oftheir goods at any time and confirm the deliveries. They can do so inthree ways first, they can use the internet to log in the company’swebsite that has detailed and updated information about the goods.Customers can know when their goods are en route and the estimateddelivery time. Secondly they can contact the customer service agentsthrough the customer care phone lines and make inquiries. Lastly,they can the company’s customized software that is compatible withmost communication and electronic gadgets like the mobile phones andcomputers (Rayport, 2010, p.2).

Thecompany’s constant tracking of the goods allows it maintains apositive control over shipments in every step. The technology is soefficient that the company gives its delivery employees the minimumtime possible to hand the goods to the clients. When the minimum timeis over, the customers do not have to pay for the services and thecompany takes the responsibility to foot the expenses. The time isusually a maximum of thirty minutes. Also, if the company cannottrack goods of a particular customer, the customer does not pay forthe services. The system makes the customers have a high level oftrust with the company, and it has been instrumental in widening thecustomer base around the world (Kim et al., 2015, p.206).

Majortests come during the Christmas celebrations when the company as totransport millions of cards around the world with efficiency toensure that the recipients get them in good time. During suchmoments, the staff works round the clock to avoid compromising thetrust and confidence of the customers towards the company.

Thecompany also operates a command and control center that has itsheadquarters in the Memphis superhub. The center coordinates thesatellite to ground operations that enable the fastest ways possibleto deliver the goods. It uses satellite and computer communicationsto monitor the routes taken by the haulers and gives the trafficinformation to ensure that the aircrafts pass through the safestroutes. The system identifies the safest route for the hub’saircrafts and coordinates the logistics in different terminals. It isthe largest communication system in the industry. Sometimes, theweather may disrupt the timely delivery of goods. During such times,the hub uses the NASA space information to plot artificial routes,and this helps to avoid delays in delivery of parcels (Kim et al.,2015, p.206).

Themechanisms used by to facilitate its delivery ofservices make it one of the fastest growing in the world. Theaverage annual growth stands at 28% in terms of the number of parcelsdelivered and the income gained. Improved services results tocustomers loyalty and they help in expanding the market fragment. Interms of growth if the fleet, the hub is doing away with the oldmodels of aircrafts in favor of the new models that are efficient infuel consumption and speed. The latest batch of aircrafts acquired bythe hub is Boeing 777 that has a bigger capacity than the othermodels. The aircraft transports parcels over long distances withoutmaking stopovers in different places. It is very instrumental inconnecting the United States of America and Asia (Howie, 2014, p.23).

Lastly,the management of air cargo in the hub is under the responsibility oftrained and certified personnel. The hub uses a significant part ofits budget to train individuals in the different processes likescanning, packaging, sorting and grouping of cargo, handling ofdangerous materials, loading and offloading (Howie, 2014, p.26). Theadoption of new technology comes with training sessions for theemployees to be in a capacity to employ it. Therefore, every day isalso a learning moment for workers in the superhub. The managementensures goods are in the hands of professionals who holdcertification from the various bodies that train and accredit cargohandlers. Instances of damages or misplacement of parcels and othergoods are, therefore, very minimal.

Likeany other company in the world, the company has its share ofstrengths, weaknesses, opportunities and threats as appertains to aircargo handling and transportation. First, being the busiest hub inthe United States of America and the world over, the superhub has awide customer base that prefers its services to those of othercompanies. The number of parcels airlifted week to different parts ofthe world amount to millions. The timely delivery and theprofessional handling of cargo attract new customers and its boastsmore clients than any other air cargo industry in the world.Secondly, the company has a big financial base that enables it toacquire new technology and aircrafts. These enhance the speed ofdelivery, and they save on fuel and labor. They put the company on acompetitive edge since the cost of handling and transportationreduces significantly (Bowen, 2012, 421).

Aspart of their weaknesses, the company does not have a comprehensiveway of environmental conservation through the use of low pollutionfuel. The company has not replaced all the old aircrafts with the newand efficient ones in terms of speed and fuel consumption. Thedevelopment of the company is therefore not comprehensive, and themanagement needs to make a speedy adoption of environmentconservation methods.

Interms of opportunities, the world population is fast changing to aspeed oriented lot due to the changing trends in employment. Thenumber of individuals who opt to use air transport is increasing bythe day. The hub can take this advantage to continue marketing itsservices and gain more clients. The technology innovators are also ina continuous intense process of coming up with efficient equipment.The hub should take this advantage to reduce its cost of handlinggoods.

Althoughthe hub is the busiest in the country, there are also other companiesinvolved in handling air cargo like Airborne and UPS. These are themain competitors in the country and the world over. The three giantscompete for the market, and each has an intensive marketingdecisions. The management of the superhub should not, therefore, tireto market its products so as to retain its significance in themarket.

Inconclusion, the air cargo industry is fast growing with companiesbecoming mainstreams for cargo only. The number of parcels deliveredevery day continues to increase, and this poses an opportunity forair cargo companies to expand their fleet and human resource base.Factors like safety and security of goods as well as professionalismare imperative in the industry. stands out a one ofthe companies that invest heavily in training and security. It has acomplete private security, and it works closely with the homelandsecurity. Convenience in terms of speed and safe delivery of goods isessential in the industry. The hub has a culture of speedy delivery,and it gives its employees minimal time for delivery at an affordablecost. The company wins the loyalty of many clients, and this isfavorable for its internal growth.

References

Bowen,J. T. (2012). A spatial analysis of FedEx and UPS: hubs, spokes, andnetwork structure. Journalof Transport Geography,24,419-431.

Budd,L., Ison, S., &amp Budd, T. (2015). Developing air cargo operationsat regional airports. Proceedingsof the ICE-Transport,168(2),124-131.

FedExCorporation. (2015). Ranks as World’s Largest CargoAirport. Retrieved fromhttp://www.fedex.com/cgi-bin/content.cgi?template=ag_pr&ampcontent=about/pressreleases/lac/pr072903&ampcc=ag

Howie,D. (2014). Express way: FedEx Corp. is based in Memphis, Tennessee,and it`s here that the main super hub of FedEx Express and its airoperations are centered. Rolls-RoyceMagazine,21-32.

Kasarda,J. D. (2013). Aerotropolis: Business mobility and urbancompetitiveness in the 21st century. Culturesof Mobility edited by Klaus Benesch (Heidelberg: HeidelbergUniversity Press, 2014) John D. Kasarda and Greg Lindsey,Aerotropolis: The Way We’ll Live Next (New York: Farrar, Strauss,and Giroux, 2011), John D. Kasarda,“Time-based Competition andIndustrial Location in the Fast Century”, Real Estate,(23), 24-29.

Kim,D. H., Kim, P. J., &amp Youn, M. K. (2013). The Role of InformationTechnology on Distribution. Journalof Next Generation Information Technology,4(5),206.

Laudon,K. &amp Laudon, J. (2013). How Things Work in Memphis Superhub.Essentialsof Information Management Systems. Springer:New York.

Lyster,C. (2012). Learning from FedEx: lessons for the city. Journalof Landscape Architecture,7(1),54-67.

Rayport,J. (2010). The Miracle at Memphis. MIT Technology Review. Retrievedfromhttp://www.technologyreview.com/news/422081/the-miracle-of-memphis/page/2/