Essay about The Smal Package Express Delivery Industry
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Introduction The Small Package Express Delivery Industry is one of the industries where transportation and logistics giant, FedEx, is heavily involved in. Small Package Delivery pertains to a service wherein a company, which in this case would be FedEx, would accept payment from customers and other business owners in exchange of guaranteeing that their small packages would be delivered on or within a specified amount of time or a given schedule to their specified destination. Door to door small package delivery services have been a common service offering in this industry.
During the early 70s, at a time when electronic methods of sending and receiving packages and other things such as information were not yet discovered or at least…show more content… This prompted him to create a business that is centered on the speed and reliability of delivery. During the early 70s, Smith unconsciously created his own value creation strategy by establishing FedEx and introducing a fast and reliable, albeit pricey, delivery services.
The small package delivery industry is a business environment filled with highly competitive players which includes key company names such as FedEx, DHL (at least in the past), UPS, and USPS. After DHL’s voluntary decision to wind down its involvement in the small package delivery industry, the only remaining key industry players would be FedEx, UPS, and USPS. Each of these three companies have shown their dedication in performing business activities and creating new and innovative services that add value to what the customers are paying them.
In the case of Federal Express, for example, it is the first company to discover and actually implement a Hub and Spoke System. This is a system often used in the airline or in the package delivery industry wherein a system of delivery connections is arranged like a chariot wheel. At the center of the wheel is the hub where all the delivery items and their respective destinations would be consolidated and at the outer surface of it would be the spokes where the delivery items would be brought for distribution, often on a door to door basis, at least in FedEx’s