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FedEx chief talks supply chain


17/11/2006 16:40 
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The growing roll of IT in the supply chain cannot be understated and will help companies to adapt quicker when economic conditions change, according to the chief executive of FedEx.

Fred Smith introduced express package delivery to the world 35 years ago at FedEx and has stated his belief in an interview with the Financial Times that supply chain management's increased visibility in today's business climate can only benefit firms.

Talking about economic slowdown in the US, Mr Smith said that economic corrections in the 20th century had been less prolonged and he predicted that to continue.

"In large part that is because there's so much better information at the point of sale and so much better visibility all the way back to the supply chain," Mr Smith remarked.

He continued: "So when you have a reduction in demand, that's quickly transmitted back to the entire business process and it makes it more flexible and much easier to adjust to temporary slowdown."

The concept of just in time supply chains has always been fostered by FedEx and solutions such as e-procurement, for instance, will mean this trend continues as supply chains benefit from greater transparency.

Federal Express Corporation was established in Little Rock, Arkansas in 1971 and today has its global headquarters in Memphis, Tennessee.

 
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