Operations Management Comparison: DHL and FedEx Essay

Introduction Business logistics solutions have come a long way since the utilization of the postal system for business purposes during the Industrial Revolution. Its importance in achieving company goals of efficiency and profitability for the current corporate industries as well as several others can be pointed out as an evidence of the evolution of business logistics in the past years. During the peacetime era shortly right after the Second World War marked for the emergence of various forms of businesses and thereby increasing as well the need for faster and efficient logistics solutions that will satisfy the needs of these emerging industries. This signaled the surfacing of companies that specifically provide business logistics solutions with the primary goal of enabling companies meet their respective corporate objectives and thereby creating a particular industry in itself. Through the years, the range of services that these logistics companies offer grew from simple overnight parcel deliveries to sore sophisticated and complex services along with the ever increasing demands of the market which could substantiate the current market situations of our time (Averbook, 2005). In this particular service industry, a couple of firms that predominantly provide business logistics solutions to certain businesses came into view as industry leaders. Both of these service providers offer their clients a wide range of services that cater to a specific purpose and need. The evolution that has been evident in the industry can specifically be attributed to these service providers: Federal Express and DHL. Comparison of Company Mission Statements One specific reason as to how both business logistics solution providers, DHL and FedEx has reached their status as industry leaders among various firms that are also engaged in the same line of business is because of their commitment in proving services that caters specifically to every needs of their clients. For instance, what started out as an undergraduate thesis at Yale University came out to become a company of â€Å"firsts† this line of business. Federal Express which has changed its name into FedEx that most of us know of today, officially started out operations in 1973 delivering parcels from New York to Florida (â€Å"FedEx History†, 2006). FedEx’s mission statement states that the company will revolutionize global business practices that will define speed and reliability. Federal Express, through the years, did just that. The company’s particular ability to provide high value-added supply chain, as well as effective packages that also covers the transportation while relating information and business itself through specific operating companies. This was coupled with the assurance to every market segment they serve of the highest degree of quality in services. This has caused the development of harmonious relationships between its company clients and partners without sacrificing the issue of safety in its processes. Another American service provider, DHL, has pretty much the same mission statements as that of FedEx which aims primarily to aid their clients in achieving high quality and swift services that could improve company performance (â€Å"Press Release†, 2006). DHL attributes this to their expertise and knowledge of both local and global customer needs and demands. This emphasis on the significance of culture helps DHL provide an outstanding service in all levels of business specifications. Furthermore, one thing unique about DHL’s mission statement is the inclusion of concern not only for their clients and partners but as well as for the environment and their employees. This signifies the particular social responsibility that the company adheres itself to. Corporate Strategy Comparisons Corporate strategies employed by both companies also played a major role in establishing itself into the service providers that they are nowadays. For instance, these strategies have defined industry standards that were proved to become the benchmark other similar business logistic solutions providers’ offer for their clients (â€Å"Financial Results†, 2006). For the part of DHL, the company’s primary commitment to communities wherein their work is defined has helped a lot in increasing company services. Their advertisements that particularly emphasize on the knowledge of local traditions and beliefs have proven to be effective that even FedEx ran a similar advertisement about the same concept. The execution of such particular concept is necessary since the nature of the business is basically done in a cross country approach. Additionally, the promotion of DHL’s employees’ social commitment caps off the intent of the company to become a holistic service provider whose concerns stretch out not only for profits but also for social consciousness (â€Å"DHL Company History†, 2005). On the other hand, FedEx’s corporate strategy involves an array of techniques that they have well utilized over the years that they used to their own advantage. These strategies are designed to be implemented simultaneously along with other operating management standpoints. First up is the ability of FedEx to work and operate independently. This particular characteristic of FedEx focuses on their independent network sources which are being utilized to cope up with the changing preferences of their clients. A perfect example of this starts with the selection of the name itself that also connotes the tendency of its clients being patriotic. Specifically, the word â€Å"federal† appeals to a variety of clients who could easily attach the company name with the system of governance. Second is the capability of the firm to compete collectively by uniting as one organization that works for one objective under one name. For instance, FedEx has only one advertising agency that they hire so as to consolidate advertisements and reduce costs. Another tactic that they instituted in their organization is the strategic choice of headquarters which is in Memphis, Tennessee. The location of the city makes it possible for the service provider to be able to reach out to several cities in such a short span of time. The capability of FedEx to collectively tackle the market is also one of the major reasons why the firm has been a trend-setter in most aspects of the business. As a matter of fact, recent company acquisitions that FedEx made provided an avenue for the company to expand its services into a variety of offerings. The services that they offered significantly grew from the traditional overnight parcel deliveries up to 3PL logistics, express mail services, and e-commerce among others. This proves the point that the existence of both service providers improved and redefined the efficiency of the service industry for it tailored itself to the changing demands and preferences of the market which is at the same time adept with the current market trends. Last thing is the ability of FedEx to manage its resources collaboratively. As one of their publicity goes, the FedEx team works together to sustain loyal relationships among themselves and instill in them the camaraderie that is inherent with a group. This particular strategy is quite important so as to create a harmonious working environment wherein cooperation and helping out to each other is pretty evident. Company Goals and Values Both FedEx and DHL exhibit a considerable array of company goals that could deemed be useful for all the aspects of the business not mention the ability to tap all elements that makes the firms existence possible. FedEx to be particular revolves its company values around the major stakeholders that are involved with the business. Number one here is the people, clients who greatly influence the operations management of the firm and also the primary reason for the existence of the company. Second is the service whose maintenance of high quality affects the perception of the general public which is pivotal in achieving company objectives. Innovation comes in third wherein the needs of the clients are constantly kept in mind in devising new services which could in turn inspire or improve the way we live. Fourth is the maintenance of company integrity in the management of operations and other aspects of the business with the use of appropriate behaviors towards the company’s clientele as well as their co-workers. Last is the protection of company loyalty both of the market as well as in the workplace in the belief that this would earn the company the necessary respect that it deserves. On the last note, DHL envisions itself as the service provider of choice when it comes to express mail services and overall logistics network (DHL, 2006). At the same time, it aims to lead the industry in the provision of high standard quality services and at the same time being a favorably profitable business entity. Finally, to satisfy expectations of their stakeholders in reference to their performance in the ethical, social and environmental fields, concluding that the existence of both service providers do not only concern a small fraction but the whole components of the business as a whole. Averbook, J. (2005). Linking Performance to Corporate Missions Retrieved December 13, 2006, from http://www. wpsmag. com/content/templates/wps_article. asp? articleid=146&zoneid=19 DHL. (2006). DHL Mission, Vision, and Values. Retrieved December 13, 2006, from http://www. dhl. com/publish/etc/medialib/g0/downloads/general. Par. 0028. File. tmp/vision. pdf DHL Company History. (2005). Retrieved December 13, 2006, from http://www. dhl. com/publish/g0/en/about/history/history2. high. html FedEx History. (2006). FedEx Express. Financial Results. (2006). Retrieved December 13, 2006, from http://www. fedex. com/us/investorrelations/downloads/annualreport/2004annualreport_financials. pdf? link=4 Geneveive. (2005). Famous Quotations. Retrieved December 13, 2006, from http://www. famous-quotations. com/forum/forum_posts. asp? TID=193&PN=6 Press Release. (2006). Retrieved December 13, 2006, from http://www. dhl-usa. com/about/pr/PRDetail. asp? nav=AboutAirborne/CompanyInfo/PressReleases&seq=262.