As a manufacturer and distributor of agriculture equipment, as well as a broad range of construction and forestry equipment, Deere & Company had a lot riding on the smooth flow of its logistics function. FedEx Logistics provided out-sourced transportation services to 11 Deere facilities across North America. But with each of Deer's individual business units responsible for its own logistics activities, and with each unit negotiating a separate service agreement with the FedEx facility, costs and services tended to differ across the units. Deere's manager of logistics design asked a summer intern student to evaluate the company's logistics agreement with FedEx, with a view to identifying opportunities for standardizing costs and services across the business units. The logistics manager is expecting a report containing details of each operation's work flow and cost information, as well as some recommendations for updating Deere's out-sourcing arrangements with FedEx Logistics.
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