Quarter Life Crisis

The world according to Sven-S. Porst

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FedEx

200 words

While in Berkeley, I noticed that they had postboxes for shipping companies such as UPS and FedEx on campus right next to the normal ones. After my bad experiences with UPS, I learned that FedEx supposedly performs better.

Apparently they operate through a single 'hub' (I think it was St. Louis). Every parcel is shipped there and then put on another journey to its final destination. While this may save a lot in logistics, it seems particularly wasteful in terms of transport and energy as it generates a lot of detours. Particularly so in a huge country such as the U.S.

I was also told that this business idea was originally submitted as a project or thesis for a business degree – and rejected. As it seems to work, I suppose this happened not because the project wasn't good but for lack of originality.

After all, such a centralised system isn't exactly new. Usually we call it 'France'.

People jokingly (?) say that no matter how close two places are that you'll always have to change trains in Paris on your journey. And of course they have the place de l'étoile right in the middle where all the axes meet.

April 16, 2004, 11:21

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Comment by ckd: User icon

FedEx’s main hub is in Memphis, but they don’t actually fly everything there these days; they have other hubs in Newark and Oakland (and probably others).

The advantage of FedEx’s model is that it actually doesn’t generate that many detours. A package from NYC to Atlanta could get sent on a direct flight, or on a connection through Memphis…but if you don’t have enough packages to fill a direct flight, but do have enough from NYC to everywhere to fill a plane and enough from everywhere to Atlanta to fill a plane.

Remember, the model is designed for overnight letters, not shipping goods from warehouses to customers. (That gets done through tricks like having your warehouse at the hub (Airborne Express does a lot of this from their Wilmington, OH facility), removing all the detours!

Memphis is also within a fairly short flight of most of the population of the US.

April 16, 2004, 18:07

Comment by d.w.: User icon

Quite by accident, I’ve got a semi-controlled FedEx experiment happening right now. Yesterday, at about noon local time, I placed an order for a new monitor from Newegg.com, headquartered in La Puente, California. I then ordered a new Power Mac from Apple (Cupertino, California), about an hour or two later.

The computer shipped from Harrisburg, Pennsylvania late last night, and has a projected arrival date of tomorrow (Thursday.) The monitor shipped from Memphis (hah!) this morning, and is projected to arrive “Friday, before 4:30PM.”

April 21, 2004, 15:48

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