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It is unintuitive that an overnight package sent from Mississauga to Milton would go to Atlanta first, but that is the key insight Fred Smith had when he create
by sradman 6y ago
It is unintuitive that an overnight package sent from Mississauga to Milton would go to Atlanta first, but that is the key insight Fred Smith had when he created FedEx. Regarding the CBC returns featured in the video, the 105 mile detour and the denim coveralls going to an electronics recycling facility support FedEx's strategy: exceptions in the normal processing workflow are error prone and expensive relative to the extra transportation costs.
The assumptions underlying the criticism of Amazon's and FedEx's strategy is that landfill costs and/or transportation costs do not represent the true cost to society.