A Study On Corporate Security System Optimization Of FedEx

Globalization of economic, rapidly development of E-commerce create unprecedented opportunities and challenges to logistic industry and transportation networks, along with convenience, price and timely, the management of cargo theft, physical security, loss prevention, anti-fraud, aviation security and related security issue have been already taken as core elements in the logistic business. Since the 9/11 terrorist attack in 2001, transportation networks are high-value targets for terrorists, criminals, and have been the focus of increasing security improvements worldwide. C-TPAT(Customs-Trade Partnership Against Terrorism) is the basically requirement for related companies in whole supply chain industries and apply to all corporations. In addition to the terrorist attacks, Cargo theft and other related crimes brought about by the commercial and economic loss also should not be allowed to ignore- the average global stolen goods direct costs as much as $30 billion a year, if coupled with the survey fee, insurance fee, and other indirect costs, the amount of loss can increase one times again. Those are the seriously challenges to the supply chain security and corporations. So the shipments loss, internal employee misconduct, forwarder fraud activities, aviation threats and anti-terrorism are commonly challenges which cargo courier company is facing.The objective of this research is to discover the problems and challenges faced by Fed Ex express in China, and optimize risk prevention and loss prevention program. In this thesis, Literature review, comparative analysis, data research, industry research and in-depth interviews are used for analysis. This thesis is based on Strategic Management, Operations Management, and Organization Behavior, discussed how to adjust and optimize the security system in Fed Ex with the challenges from the rapid development of business volume in E-commerce and the tighten of security requirement from local government.The thesis consists of six chapters, the first part is introduction, which is used to explain the reasons of writing this thesis, the significance and the methodology of this thesis. The second part is Literature Review in which the basic concepts, relevant literatures and analysis tools used in this paper. The third chapter is case description. This part presents the general situation of Fed Ex China, such as the history, company structure, current problems, potential risk and challenges, and some typical cases. In the fourth part, Fed Ex security cases analysis, from five aspects, Cargo Theft, Employee management, Physical Security, Freight Forwarder and Aviation Security to identify the security risks and challenges. The challenges include positioning security how to service the company and optimizing the structure of security department for cope with the external business environment threat, utilize the data analysis to make security plan, updating security policy and procedure to suit the local market, standardize security service in China market, and keep alignment with all related law enforcement and regulatory agency in local and international market. Based on the analysis and finding, the fifth part provides specific suggestion that(1) Clear Security service strategy.(2) Optimize the organization structure of security department.(3) Recruiting talents, provide sufficiency supportive for employee growth.(4) Develop Security Data analysis system locally, enhance risk prevention.(5) Development Security culture in the organization. Finally, the sixth part is the general summarize of the strategy and tactics for optimizing internal security system of Fed Ex as well as the vision of future study in this subject.This Thesis is valuable to operations management of those logistical industry company in China market for their international business. The article is an attempt to identify and describe the impact of logistics security conditions on vulnerability of the customer service and consequently on the logistical efficiency of the service. The author hopes to enhance discussion on how to improve the competitiveness of international express business by discovering the challenges, and offering the suggestions to these problems by analyzing the case of Fed Ex Express.