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Case Study
Using Information Technologies at Federal Express
Federal Express, founded in 1971, handles an average of 3 million package-tracking requests every day ( To stay ahead in a highly competitive industry, Federal Express focuses on customer service by maintaining a comprehensive Web site,, to assist customers and reduce costs. For example, every request for information is handled at the Web site instead of going to the call center saves roughly $1.87. Federal Express has reported that customer calls have decreased by 83, 000 per day since 2000, which saves the company $57.56 million per year. In addition, each package-tracking costs Federal Express three cents; by using Web site instead
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Walmart’s goal is improve efficiency in an effort to keep prices low and improve customer service. With Walmart’s network, supplier’s sales can access sales, inventory, and forecasting data over extremely fast connections. To ensure confidentiality of data, a sophisticated security has been implemented to prevent suppliers from accessing data about one another’s products.
Walmart also added Web-based access to its RetailLink system so that suppliers can use information in the database. Other data communication applications at Walmart include automated distribution, computerized routing, and electronic data interchange (EDI).
Walmart uses the latest wireless technology in its operations including wireless technology for warehouse management systems (WMS) and radio frequency (RF) to track and manage the flow of goods through its distribution centers. Another application of wireless technology is for controlling and monitoring forklifts and industrial vehicles that move merchandise inside its distribution centers. Vehicle Management Systems (VMS) is the latest application of data communication in Walmart. Among other features, VMS includes a two-way text messaging system that enables management to divert material handling resources effectively to where they are needed the most and VMS works effectively with RFID systems. According to Walmart VMS has improved safety and has also significantly improved the