FedEx

Read the following caselet carefully and answer the following questions:

1. FedEx promises sophisticated real time tracking information, free packaging, on-time delivery or money back in select territories. Discuss how the above services would give a headstart vis-a-vis its competitors?

2. Explain the convenience FedEx provided to its customers?

3. Explain how a small cargo company operating in around three states in India will get benefited if it would adopt the shipment tracking system?

FedEx

FedEx Ground is the second largest small package ground carried in North America, with a network of 370 facilities including 27 fully automated distribution hubs and local pick-up and delivery terminals. FedEx Ground offered guaranteed delivery service to 100 percent of business throughout America, supported by a team of 3,50,000 employees and contractors. With an operating company of FedEx corporation and FedEx Express. FedEx ground reported revenue of $2billion for fiscal year 2000.

FedEx had pioneered the concept of express distribution. It delivered documents, packages and freight. Fed Ex did not just ship goods on behalf of its clients but also streamlined supply chain logistic practices using the Internet. FedEx had entered e-business with the launch of its website www.FedEx.com in 1994. Customers were allowed to complete all the tasks from the website, rather than calling a person. FedEx included several software that enabled them to reduce the time they spend on shipping, thereby increasing efficiency through these tools.

It introduced a world tracking software in 1998 to install, menu-driven and easy to use. The multi-lingual stand alone and self-installable windows software allowed customers to get real-time tracking information on their shipment anywhere in the world, from pick-up to delivery. Tracking was made possible through a unique airway bill number. As soon as a customer entered the tracking number and clicked on the track button, the location of the package was displayed.

FedEx discovered that providing “on-call” services, that is, picking up customers’ packages from them was significantly more costly than servicing customers who dropped off their own packages. FedEx wanted to understand why customers were making “on-calls” and what it would take to convert them to “drop-off” customers.

FedEx home delivery takes into account all the aspects of the customer such as his availability, flexibility in fixing time etc. The customer could prefer any of the premium services like FedEx signature home delivery, FedEx date certain home delivery, FedEx evening home delivery and FedEx appointment home delivery. Under signature home delivery, it ensures that the package will not be delivered without the recipients signature. Date certain home delivery allows recipients to choose a specific day for delivery, the evening home delivery guarantees a package will be delivered between 5 P.M and 8 P.M. Appointed home delivery guarantees that delivery within an hour of a specified time, which is given by the recipient when contacted by the local FedEx home delivery terminal.

FedEx had money back guaranteed approach too. FedEx home delivery uses technology to provide better service to shipper and their residential customer. Shippers transit all package data electronically, via electronic date interchange, which allowed FedEx home delivery,as FedEx was receiving all its shipping data electronically from shippers that can tailor its delivery services specifically for the residential customer.

For example, Federal Express the first service company to win the Balridge Quality award, is built on a commitment to reliable and fast delivery service. The company makes an explicit promise to its customers. “When it absolutely, positively has to be there overnight”. Keeping that promise is essential to the relationship