In the early 1980s, FedEx controlled the American road and land parcel delivery market with its huge brown truck fleet and timely delivery service. However, in the late 1980s, with competitors using different pricing strategies and innovative tracking and billing technologies, FedEx's revenue began to decline. Many large shippers want to provide the whole delivery service through a single service source. Further, customers hope to control their own costs and improve efficiency by mastering more logistics information. With the fierce competition, the demand for such services is becoming more and more urgent. It is based on this service demand that FedEx has been committed to the extensive use and continuous upgrading of logistics information technology since the early 1990s. Nowadays, providing comprehensive logistics information service has become a crucial core competitive factor in the parcel delivery industry.
FedEx has improved its competitiveness by applying three services based on logistics information technology:
First, bar codes and scanners enable FedEx to selectively track and report the transportation status 24 hours a day, seven days a week. Customers can get value-added services such as "ground tracking" and air transportation by calling toll-free telephone numbers.
Second, FedEx delivery drivers are now carrying laptops based on numerical control technology to collect delivery information on arranged routes. The notebook computer enables the driver to digitally record the signature of the cargo receiver to provide receipt verification. Coordinate the driver's information through computer to reduce errors and speed up delivery.
Thirdly, the most advanced information technology application of FedEx is the national wireless communication network established in 1993, which uses 55 cellular carrier phones. Cellular carrier phone technology enables drivers to upload the timely tracking information of trucks to the central computer of FedEx. Wireless mobile technology and system can provide electronic data storage, and can resume tracking the company's millions of delivery services around the world. By installing a satellite ground station and an extended system, 1997 tracking packages in time has become a reality.