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Federal Express Distribution Strategy

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Federal Express Corporation changed air flight patterns from origin-to-destination to origin-to-hub, where the freight is transferred to an outbound plane heading for the destination. This revolutionized the air transport industry. 

Companies can learn from this example, to balance the costs of delivery and demands by developing an alternate distribution strategy such as implement centrally regulated demand management policy and use JIT replenishment for their distribution strategy.

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YouSigma. (2008). “Federal Express Distribution Strategy." From http://www.yousigma.com.

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