As a manufacturer and distributor of agriculture equipment, as well as a broad range of construction and forestry equipment, Deere & Co. had a lot riding on the smooth flow of its logistics function. FedEx Logistics provided outsourced transportation services to 11 Deere facilities across North America. But with each of Deere'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 outsourcing arrangements with FedEx Logistics.
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