Extreme automation: FedEx Ground hubs speed deliveries

Discussion in 'The Latest FedEx Headlines' started by cheryl, Jun 6, 2011.

  1. cheryl

    cheryl I started this. Staff Member

    Extreme automation: FedEx Ground hubs speed deliveries - Computerworld

    In the past six years, FedEx Ground has fully automated 53 of its terminals and opened nine new hubs, such as the 600,000-plus-square-foot Hagerstown facility, which has been expanded twice since it opened in 2005. The business result: FedEx Ground has gained market share for 25 consecutive quarters, notes Spangler.

    The much larger, $49.5 billion United Parcel Service, which is FedEx Ground's chief competitor, has "a similar level of automation," says Satish Jindel, president of SJ Consulting Group, a transportation and logistics consultancy in Sewickley, Pa.

    But there's one big factor that differentiates FedEx Ground in the automation wars: the level of vendor independence and control it has in choosing the sorting and scanning systems and the other pieces of material-handling equipment that make up its proprietary Integrated Sortation System, or ISS.