Control System at FedEx
FedEx operates an $18 billion delivery system from its eight U.S and seven international hubs. It operates more than 630 airplanes. 42,500 vehicles, and 44,400 drop-off locations. It delivers more than three million express packages to customers in more than 200 countries. Effective control was one of the key to FedEx's increased profits during the past decade.
An important part of the control system was the ability to track customers' parcels at each stage of collection, shipment and delivery. Also, at FedEx, its controls help identify which customers generate the greatest profits and which eventually end up costing the company. FedEx closes accounts that aren't profitable to serve, such as those in small, widely scattered locations.
The Internet has enabled FedEx to attract and hold new customers by providing them with crucial information as needed. Customers can log onto the Internet the follow the progress of their packages. By providing timely information about services and costs, along with parcel progress to its customers, FedEx has been able to expand rapidly its customer base. More than 2.5 million customers are connected electroncially with FedEx.
Source Hellriegel Don, Susan E. Jackson and John W. Slocum, Jr., Management : A Competency based Approach, Thompson, 2002
With reference to the above case, explain the steps involved in the process of controlling