1. Definition of Virtual supply Chain (VSC)
It is the Linkage of information and cash flow. Virtual means the connection of chain or network via electronic link, and it represents an organizational structure, which facilitates efficient and effective flows of both physical goods and information in the supply chain management.
2. Systems
FedEx improve the virtual supply chain through different systems and technologies, the benefit bring form those systems and technologies are as follow:
a. Power ship programed
Power ship programed improve the efficiency and proprietary online services.It also provides some additional services, for example, storing of frequently used address, label printing, online package pick up request
Power ship programed improve the efficiency and proprietary online services.It also provides some additional services, for example, storing of frequently used address, label printing, online package pick up request
b. Customers Operations, Service, Master on-line system, COSMOS
It has placing bar code (point of pick-up). The system also manage on-time information to different stakeholders, for instance, vehicle, people, package, routes and the others. It also can integrated information flow of shipped goods and transportation mode. These systems can improve the delivery cycle efficiency, shorten the cycle time and evaluating customer service levels.
c. EDI
EDI can build up one-to-one relationship with their customers. It will follow the points of raw materials and Provide management services, such as, order processing and related distribution. Interconnect and distribute information to all roles in supply chain linking to other parties in supply chain to improve the sources and procurement strategy. Improving, tightening and synchronizing inventory out of the system can squeeze the time so that can increases in customer loyalty and in customers. And also can raise the barriers to entry for competitors.d. Global Operations Command Centre
It Provides efficient gathering & dissemination of real-time data and predict with greater accuracy the amount of inbound traffic. It prioritizes the hundreds of variables. It provides current & accurate information so as to reduce failure in the business.
3. Benefits
a. Costs reduction
The cost to customers of using FedEx in 1999 was lower than it was 25 years ago. In 1999, they handled 60 million transactions per day, and saved FedEx the cost of 200,000 customer service employees. They had a virtual relationship with suppliers and the companies so that it can reduce administrative costs, payroll costs and switch to companies-(fixed cost) that provide low labor costs and a quality product. Also the resources and assets among the system suppliers will be contributed jointly under the direction of a supply chain captain and a coordinating team.
The cost to customers of using FedEx in 1999 was lower than it was 25 years ago. In 1999, they handled 60 million transactions per day, and saved FedEx the cost of 200,000 customer service employees. They had a virtual relationship with suppliers and the companies so that it can reduce administrative costs, payroll costs and switch to companies-(fixed cost) that provide low labor costs and a quality product. Also the resources and assets among the system suppliers will be contributed jointly under the direction of a supply chain captain and a coordinating team.
b. Speed up
It speeds up the product flows through the supply chain as they send new designs to suppliers and suppliers send these parts to the assembly companies. Finally, ship the finished products to distributors’ worldwide so that can reduce time required from the initial design, to production and then distribution and allow resources to be treated as commodities that can be lent, borrowed or traded. They can thus be flexibly consolidated, apportioned and allocated.
It speeds up the product flows through the supply chain as they send new designs to suppliers and suppliers send these parts to the assembly companies. Finally, ship the finished products to distributors’ worldwide so that can reduce time required from the initial design, to production and then distribution and allow resources to be treated as commodities that can be lent, borrowed or traded. They can thus be flexibly consolidated, apportioned and allocated.
c. Diversity of suppliers
VSC allows a company to search for and use a wider range of suppliers. Although geography may separate them, they can still communicate electronically. It can benefit the company because more multiple suppliers means you can avoid emergencies in your supply chain and the more suppliers are available. It can high the flexibility.
VSC allows a company to search for and use a wider range of suppliers. Although geography may separate them, they can still communicate electronically. It can benefit the company because more multiple suppliers means you can avoid emergencies in your supply chain and the more suppliers are available. It can high the flexibility.
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