Q4. Discuss the virtual integration of the supply chains without ownership

I.            The definition of virtual integration of the supply chains without ownership:

ü   Standardizes the system for the whole supply chain

ü   Eliminate the boundaries in the supply chain among the suppliers, manufactures and customers

ü   Seamless the Supply Chain

ü   Improving, tightening and synchronizing the various parts of supply chain

II.          The Technological systems & Applications:

III.        Benefits from the virtual integration of supply chains without ownership

1.          Ability to interconnect and distribute information to all the players in a supply-chain

Ø   Differentiate FedEx’s products & service

2.          Outsourcing the supply chain management function from FedEx

Ø   More partnership arrangement

Ø   Help partner to redefine sources and procurement strategies

Ø   Link other parties in the supply chain

Ø   Become FedEx core business

3.          Raise barriers to the entry for competitors

Ø   Increase customer loyalty and customers’ switching costs

4.          Control the movement of goods:

Ø   A product movement planner scheduled the order

Ø   more efficient and convenient

5.          Information:

Ø   Automatically up-date

Ø   real time, more accurate (e.g. movement of trucks & aircraft, inbound traffic, weather patterns

Ø   gathering and disseminating real-time data